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Army Veteran Owned | Expert Surety Bonds Since 2004
Have a question? +1 815-826-6324 (815-8-BondAI) phil@AmericasSuretyBonds.com
Army Veteran Owned | Expert Surety Bonds Since 2004
If you are opening a nonmedical home care business in Ohio, the $20,000 surety bond is one of the last boxes to check before the Ohio Department of Health will issue your license. It is a small, fast filing. Most owners are quoted in minutes, pay a modest annual premium rather than tying up $20,000 of their own money, and get a bond form they can attach straight to the ODH application.
Ohio requires a $20,000 surety bond from anyone applying for a Nonmedical Home Health Services license through the Ohio Department of Health, unless the business was already providing direct care on or immediately before September 30, 2021. The bond is filed with ODH along with the license application and the $250 application fee, and it must be written by a surety licensed to do business in Ohio.
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Ohio began licensing home health providers under Chapter 3740 of the Ohio Revised Code, and the rules live in the Ohio Administrative Code at 3701-60-03. Two license types exist. Skilled home health services covers nursing, physical therapy, occupational therapy, speech-language pathology and medical social services, and carries a $50,000 bond. Nonmedical home health services covers personal care work such as bathing, dressing, meal preparation and similar hands-on help, and carries the $20,000 bond described on this page.
The bond is not universal. Ohio wrote in a grandfather clause. If the agency or nonagency provider was already delivering direct care on or immediately prior to September 30, 2021, no bond is required. If the business started after that date, or is starting now, the bond is required with the application. Practically speaking, every new agency and every newly self-employed caregiver applying today needs one.
A surety bond is not insurance for the provider. It is a three-party guarantee. The provider is the principal, the Ohio Department of Health is the obligee, and the surety company stands behind the provider's compliance with Chapter 3740 and the rules adopted under it. If the provider violates those obligations and a valid claim is paid, the surety pays first and then looks to the provider for reimbursement. That is why the annual premium is a fraction of the $20,000 face amount, and why the surety cares about the owner's credit and business history.
ODH charges a nonrefundable $250 application fee. The license runs for three years from the date of issuance, and a renewal application is only considered timely if it is filed at least 90 days before expiration. The bond needs to be in force for the license to stay valid, so most providers keep the bond on a continuous annual renewal rather than letting it lapse and scrambling at renewal time.
For a bond this size the underwriting is light. There is no bid, no contract to review and no project schedule. The application asks for the legal business name exactly as it appears on the ODH filing, the owner's information, and authorization to check credit. Approval is usually same day. The executed bond form is what gets attached to the license application, so the business name on the bond and on the ODH paperwork must match character for character or ODH will send it back.
You are exempt if your business was already providing direct care on or immediately prior to September 30, 2021. Everyone else applying for a Nonmedical Home Health Services license needs the $20,000 bond. If you are opening a new agency or going out on your own as a nonagency provider today, plan on the bond.
You pay an annual premium, not the $20,000. Premium is a percentage of the bond amount and is driven mainly by the owner's personal credit. Well-qualified applicants land at the low end of the range for license bonds this size, and bonds this small usually carry a minimum premium regardless of credit. Applicants with credit problems pay more but are still routinely written. Get your actual number instantly rather than guessing from a range.
License type, not company size. Nonmedical home health services means personal care work such as bathing, dressing, meal preparation and similar assistance, and the bond is $20,000. Skilled home health services means nursing, physical therapy, occupational therapy, speech-language pathology or medical social services, and the bond is $50,000. If you are licensed for both, ask ODH which bond or bonds your application requires before you buy.
Before, or at the same time. The executed bond is one of the documents that goes with the license application, along with the $250 nonrefundable fee and the primary owner's fingerprint impression card. Approval on a bond this size is normally same day, so it does not need to hold up your filing.
The bond is written for a one year term and renews annually. The ODH license itself runs three years from issuance, and a renewal application has to be filed at least 90 days before expiration to be treated as timely. Keep the bond continuously in force across that three year window so a lapse never becomes a licensing problem.
Your clients and the state, not you. If a valid claim is paid, the surety pays it and then seeks reimbursement from you. Providers who want coverage for their own losses need general liability and professional liability insurance, which are separate products.
Ohio licenses nonagency providers, meaning self-employed individuals who provide direct care and do not employ or contract with anyone else to provide the services. There are specific exclusions in the statute, including family caregivers, volunteers, and people serving two or fewer unrelated individuals. If you are required to be licensed and you started after September 30, 2021, the same $20,000 bond applies to you.
Yes. A $20,000 license bond is a small exposure and the market for it is broad. Credit affects the rate, not eligibility, for the overwhelming majority of applicants. Apply and see the real number before assuming you cannot get bonded.
The claimant submits documentation to the surety. The surety investigates, and if the claim is valid it pays up to the $20,000 limit and then pursues you for the amount paid plus costs. Paid claims also make future bonding harder and more expensive, which is the practical reason to treat a claim notice seriously the day it arrives.
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