Ohio Sewage Treatment System Service Provider Bond: A Comprehensive Guide

January 27, 2021

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

At a Glance:

• Average Cost:
  • $25,000 bond limit: $100 per year
  • $15,000 bond limit: $125 per year
• Bond Amount: 
  • $25,000 for service providers
  • $15,000 for contractors with a dual registration as both a service provider and installer
• Who Needs It: All individuals and businesses seeking to obtain a Sewage Treatment System Service Provider Registration in the State of Ohio
• Purpose: To ensure the public will receive compensation for any damages should the service provider fail to comply with registration law
• Who Regulates Sewage Treatment Service Providers in Ohio: The Ohio Department of Health (DOH) is the ultimate regulatory authority, however service providers will need to register with each local health district where work is performed

Background

Ohio Statute 3701-29-03 requires all sewage treatment system service providers 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 service providers engage in ethical business practices. In order to provide financial security for the enforcement of the registration law, service providers must purchase and maintain either a $25,000 or $15,000 sewage treatment systems service provider surety bond to be eligible for registration.

What is the Purpose of the Ohio Sewage Treatment System Service Provider Bond?

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

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

BondExchange makes obtaining an Ohio Sewage Treatment System Service Provider 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.

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

No, a credit check is not required for the Ohio Sewage Treatment System Service Provider Bond. Because this bond is considered relatively low-risk, the same low rate is offered to all service providers in Ohio

How Much Does the Ohio Sewage Treatment System Service Provider Bond Cost?

The Ohio Sewage Treatment System Service Provider Bond will cost the following amount:

• $15,000 Bond Limit – $100 per year
• $25,000 Bond Limit – $125 per year

How Does Ohio Define “Sewage Treatment System Service Provider”?

Ohio Statute 3701-29-01 defines a sewage treatment system service provider as “any person who services, monitors, evaluates or samples, but does not install or alter, sewage treatment systems or gray water recycling systems.”

How Do Sewage Treatment System Service Providers Apply for Registration in Ohio?

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

Registration Period – The Ohio Sewage Treatment System Service Provider 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 service providers will need to register with each local health authority where work is performed. Service providers can find a list of all local health authorities in Ohio here.

Step 2 – Purchase a Surety Bond

Service Providers will need to purchase and maintain a Sewage Treatment System Service Provider surety bond with the following limit:

• • $25,000 for service providers
  • $15,000 for contractors with a dual registration as both a service provider and installer

Step 3 – Purchase Insurance

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

Step 4 – Pass the Exam

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

Step 5 – Complete a Manufacturer Certification/Training Course

In 2007 the Ohio DOH began requiring sewage treatment systems to undergo a product approval process. As part of this process, service providers must complete a certification/training course, administered by a product’s manufacturer, for each type of sewage treatment system work is performed on. Below are approved training courses service providers can utilize in lieu of a manufacturer’s certification/training course:

•  Excluding NPDES and Drip Distribution:
  • Ohio Waste Hauler Association Qualified Service Provider
  • NAWT O&M or Inspector Program certification
  • Class A, I, II, III, or IV wastewater operator certification from the Ohio EPA

Step 6 – Complete the Application

Each local health district will have their own specific application form and fee requirements. Service providers 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 Service Provider Renew Their Registration?

Sewage Treatment System Service Providers will need to renew their registrations directly with each local health authority they are registered with. Service providers 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 Service Provider 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 Service Provider Registration?

The State of Ohio requires sewage treatment system service providers to obtain liability insurance with a minimum limit of $500,000. Service providers will need to purchase and maintain either a $25,000 or $15,000 surety bond

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

Sewage Treatment System Service Providers 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 service provider surety bond requires signatures from both the surety company that issues the bond and the service provider. The surety company should include the following information on the bond form:

• Date the bond goes into effect
• The bond amount
• 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 Service Providers Do to Avoid Claims Against the Ohio Sewage Treatment System Service Provider Bond?

To avoid claims on the Sewage System Service Provider Bond, service providers must properly  service all 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 Service Providers in Ohio?

Ohio requires sewage treatment system service providers 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 Service Provider Customers?

Ohio conveniently provides a public database to search for active sewage treatment system service providers 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 Installer – Bond limits of $40,000 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