Ohio Sewage Treatment System Installer Bond: A Comprehensive Guide

January 27, 2021

Ohio Sewage Treatment System Installer Bond

This guide provides information for insurance agents to help contractors on Ohio Sewage Treatment System Installer bonds

At a Glance:

  • Average Cost: Between $125 – $2,000 per year, based on the installer’s credit score
  • Bond Amount: 
    • $25,000 for contractors who install one sewage treatment system per year
    • $40,000 for contractors who install more than one sewage treatment system per year
  • Who Needs It: All individuals and businesses seeking to obtain a Sewage Treatment System Installer Registration in the State of Ohio
  • Purpose: To ensure the public will receive compensation for any damages should the installer fail to comply with registration law
  • Who Regulates Sewage Treatment System Installers in Ohio: The Ohio Department of Health (DOH) is the ultimate regulatory authority, however system installers will need to register with each local health district where work is performed

Background

Ohio Statute 3701-29-03 requires all sewage treatment system installers operating in the state to register with each local health district where work is performed. The Ohio legislature enacted the registration laws and regulations to ensure that installers engage in ethical business practices. In order to provide financial security for the enforcement of the registration law, installers must purchase and maintain either a $25,000 or $40,000 sewage treatment systems installer surety bond to be eligible for registration.

What is the Purpose of the Ohio Sewage Treatment System Installer Bond?

Ohio requires installers to purchase the Sewage Treatment System Installer Bond as part of the application process to obtain a sewage treatment system installer registration. The bond ensures that the public will receive compensation for financial harm if the installer fails to comply with the registration regulations. In short, the bond is a type of insurance that protects the public if the installer breaks registration laws.

How Can an Insurance Agent Obtain an Ohio Sewage Treatment System Installer Surety Bond?

BondExchange makes obtaining an Ohio Sewage Treatment System Installer Bond easy. Simply login to your account and use our keyword search to find the “contractor” bond in our database. Don’t have a login? Enroll now and let us help you satisfy your customers’ needs. Our friendly underwriting staff is available by phone (800) 438-1162, email or chat from 7:30 AM to 7:00 PM EST to assist you.

At BondExchange, our 40 years of experience, leading technology, and access to markets ensures that we have the knowledge and resources to provide your clients with fast and friendly service whether obtaining quotes or issuing bonds.

Not an agent? Then let us pair you with one!

BX Agent Finder Link

Click the above image to find a BX Agent near you

Is a Credit Check Required for the Ohio Sewage Treatment System Installer Bond?

Surety companies will run a credit check on the owners of the installer company to determine eligibility and pricing for the $40,000 Ohio Sewage Treatment System Installer bond. Installers with excellent credit and work experience can expect to receive the best rates. Installers with poor credit may be declined by some surety companies or pay higher rates. The credit check is a “soft hit”, meaning that the credit check will not affect the installer’s credit. The $25,000 bond requirement does not require a credit check.

How Much Does the Ohio Sewage Treatment System Installer Bond Cost?

The Ohio Sewage Treatment System Installer surety bond can cost anywhere between $125 to $2,000 per year. Insurance companies determine the rate based on a number of factors including your customer’s credit score and experience. We also offer easy interest-free financing for premiums over $500. The chart below offers a quick reference for the approximate bond cost on the bond.

$40,000 Bond Requirement

Credit Score Bond Cost (1 year)
625+ $200
600 – 624 $600
550 – 599 $1,000
525 – 549 $1,200
500 – 524 $2,000

*The credit score ranges do not include other factors that may result in a change to the annual premium offered to your customers, including but not limited to, years of experience and underlying credit factors contained within the business owner’s credit report.

$25,000 Bond Requirement

The $25,000 Ohio Sewage Treatment System Installer Bond costs just $125 per year.

How Does Ohio Define “Sewage Treatment System Installer”?

Ohio Statute 3701-29-01 defines a sewage treatment system installer as “any person who engages in the business of installing or altering or who, as an employee of another, installs or alters any sewage treatment system or gray water recycling system.”

How Do Sewage Treatment System Installers Apply for Registration in Ohio?

Sewage treatment system installers in Ohio must navigate several steps to obtain their registration. Below are the general guidelines, but installers should refer to the DOH’s Registration Fact Sheet for details on the process.

Registration Period – The Ohio Sewage Treatment System Installer Registration expires at the end of every calendar year and must be renewed before the expiration date

Step 1 – Determine the Local Health Authority

Sewage treatment system installers will need to register with each local health authority where work is performed. Installers can find a list of all local health authorities in Ohio here.

Step 2 – Purchase a Surety Bond

Installers will need to purchase and maintain a Sewage Treatment System Installer surety bond with the following limit:

    • $25,000 for contractors who install one sewage treatment system per year
    • $40,000 for contractors who install more than one sewage treatment system per year

Step 3 – Purchase Insurance

All sewage treatment system installers will need to purchase and maintain liability insurance with a minimum limit of $500,000

Step 4 – Pass the Exam

Sewage treatment system installers must pass a state exam covering sewage treatment system rules. The exam is open book and consists of 75 multiple choice questions. Installers can register for the exam here.

Step 5 – Complete the Application

Each local health district will have their own specific application form and fee requirements. Installers should contact every local health district where they intend on performing work to obtain an application, a list of local health authorities can be found in Step 1.

How Does an Ohio Sewage Treatment System Installer Renew Their Registration?

Sewage Treatment System Installers will need to renew their registrations directly with each local health authority they are registered with. Installers must complete 6 hours of continuing education each renewal period, a list of continuing education providers can be found here. The Ohio Sewage Treatment System Installer Registration expires at the end of every calendar year and must be renewed before the expiration date.

What Are the Insurance Requirements for the Ohio Sewage Treatment System Installer Registration?

The State of Ohio requires sewage treatment system installers to obtain liability insurance with a minimum limit of $500,000. Installers will need to purchase and maintain either a $25,000 or $40,000 surety bond

How Do Ohio Sewage Treatment System Installers File Their Bond With The Ohio DOH?

Sewage Treatment System Installers should mail the completed bond form, including the power of attorney, to the following address:

Ohio Department of Health
BEHRP/ Residential Sewage Program
246 N. High St.
Columbus, Ohio 43215-0278

The sewage treatment system installer surety bond requires signatures from both the surety company that issues the bond and the installer. The surety company should include the following information on the bond form:

  • Date the bond goes into effect
  • Legal name and address of the entity/individual(s) buying the bond
  • The bond applicant’s business operating structure (individual, corporation, partnership)
  • The surety company’s name, address, and phone number

What Can Sewage Treatment System Installers Do to Avoid Claims Against the Ohio Sewage Treatment System Installer Bond?

To avoid claims on the Sewage Treatment System Installer Bond, installers must properly install and alter all sewage treatment systems in accordance with the guidelines and standards set forth by the Ohio Department of Health

What Other Insurance Products Can Agents Offer Sewage Treatment System Installers in Ohio?

Ohio requires sewage treatment system installers to obtain liability insurance with a minimum limit of $500,000. Bonds are our only business at BondExchange, so we do not issue liability insurance, but our agents often utilize brokers for this specific line of business. A list of brokers in this space can be found here.

How Can Insurance Agents Prospect for Ohio Sewage Treatment System Installer Customers?

Ohio conveniently provides a public database to search for active sewage treatment system installers in the state. The database can be accessed here. Contact BondExchange for additional marketing resources. Agents can also leverage our print-mail relationships for discounted mailing services.

What other Contractor License Bonds are Required in Ohio?

Contractors in Ohio will need to obtain specific bonds correlating with their license type. Below are all the different contractor licensing bonds required by the State of Ohio:

  • Sewage Treatment System Service Provider – Bond limits of $15,000 and $25,000
  • Sewage Treatment Systems Septage Hauler – Bond limit of $25,000
  • Private Water Systems Contractor – Bond limits of $10,000 and $20,000

2022-06-16T12:10:55-04:00