The Ohio Revised Code requires certain school district employees to be bonded (treasurer, fiscal officer, and business manager.)
School districts also may opt to cover additional employees who handle money and enter into financial transactions under Employee Dishonesty Coverage.
The OSBA Bond Program offers schools an easy and direct method to purchase bonds and employee dishonesty coverage.
Member benefits
- The superior financial strength of surety
- A professional program manager with experienced licensed staff
- Fulfills Ohio bonding requirements for treasurers, fiscal officers, and business managers
- Flexibility for school districts to schedule other employees/positions for employee dishonesty coverage
Types of coverage:
Public Official Bond
The public official bond is a surety bond that guarantees the said principal, name of the individual appointed to the position of treasurer, fiscal officer, or licensed business manager, will perform the duties of office faithfully and honestly. In most cases, a surety bond is required to hold the position. While duties may vary by position and applicable law, a treasurer, fiscal officer, and licensed business manager is obligated to act in the public's best interest at all times and may be held personally accountable for the duties and responsibilities of that position.
This bond assures the recovery of financial loss incurred by a school district that results from a treasurer's, fiscal officer's, or licensed business manager's non-compliance with state regulations and ordinances.
Employee Dishonesty Coverage
A crime policy issued with employee dishonesty coverage and faithful performance of duty guarantees the performance of covered persons in positions specifically scheduled on the policy, as provided by the school district on the application (e.g., superintendent, board president, secretaries, cashiers, etc.) The individual must be an employee of the district.
Coverage does not extend to the treasurer, fiscal officer, and licensed business manager and excludes all volunteers such as PTA members.
Applications:
Treasurer Bond (Public Official Bond)
To apply, please complete the following two (2) forms:
Click here for Treasurer Bond application.
Click here for Public Official application and Indemnity Agreement.
Fiscal Officer Bond (Public Official Bond)
To apply, please complete the following two (2) forms:
Click here for Fiscal Officer Bond application.
Click here for Public Official application and Indemnity Agreement.
Business Manager Bond (Public Official Bond)
To apply, please complete the following two (2) forms:
Click here for Business Manager Bond application.
Click here for Public Official application and Indemnity Agreement.
Scheduled Position Employee Dishonesty Coverage (Crime Policy)
To apply, please complete the following two (2) forms:
Click here for Employee Dishonesty - Scheduled Position application.
Click here for Acord 141 - Crime Section application.
Claims reporting:
Public Officials Bonds
The state of Ohio requires a treasurer, fiscal officer, or business manager to provide a surety bond in an amount set by the school district board. However, the bond is required to be written in favor of the state of Ohio. The district is not named on the bond. Therefore, a claim against a treasurer, fiscal officer, or business manager must be made by the state, usually, after the state audits the district's records and has arrived at a finding for restitution. However, the state attorney general's office gives the district 120 days to work with law enforcement and the prosecuting attorney to obtain restitution directly from the treasurer, fiscal officer, or business manager. After 120 days, the state attorney general's office will file a claim to the surety with the "audit finding" as evidence to support the claim. The surety will remit payment usually in 30 days to the state, and the state will remit to the district about 30 days later. However, the bond may be inadequate to cover the loss, so a civil suit may be filed to recover the missing funds' balance.
Crime Policy
When a school district has purchased a crime policy that provides coverage against employee theft of money or property under a scheduled position employee dishonesty coverage form, with faithful performance of duty, the district is the “Named Insured.” It has the duty to report a claim under this policy to the insurer and assist the insurer by providing full details of the loss. This can be accomplished by reporting the claim directly to the insurer (Travelers) or the program administrator (Hylant Administrative Services.)
General information:
Program Administrator
Hylant Administrative Services, LLC administers the OSBA Bond Program. Hylant teams with highly rated insurance carriers, reinsurers, and other partners to provide comprehensive products and services as a program administrator. Hylant employs experienced professionals with sound expertise, disciplined decision-making, and professional service delivery, all aimed at helping clients build financial strength and ensure long-term stability.
Submit all applications, changes, cancellations, and questions to:
Hylant Administrative Services
Attention Laura Hamman
P.O. Box 2083
Toledo, OH 43603-2083
Phone: (800) 249-5268
Fax: (419) 259-6099
laura.hamman@hylant.com
Program Surety / Insurer
The OSBA Bond Program is underwritten by Travelers Casualty and Surety Company of America, which is consistently given high ratings by independent rating services including A.M. Best, Moody's, and Standard and Poor's for financial strength and claims-paying ability.
Travelers Casualty & Surety
Phone: (800) 842-8496
Fax: (888) 460-6622
BSIclaims@travelers.com
OSBA Staff Liaison
Allison Morris, chief financial officer