Ohio Private Water Systems Contractor Surety Bonds

The Ohio Department of Health (ODH), Bureau of Environmental Health and Radiation Protection, Residential Water and Sewage Program (the Department) is responsible for the registration of water systems contractors including pump installers, well drillers, cistern installers, well sealing, spring developers, pond installers, water system inspectors, maintenance of systems and other public health water related issues. Contractors, companies and property owners who will work on their own water system, must be currently registered and obtain a surety bond in order to perform water systems services.

Obligee and Bond Conditions:

The obligee is the entity that requires the bond. The Ohio Department of Health requires a surety bond prior to the drilling of any new wells, repairing, installing, and the sealing of wells by a company, property owner, or self-employed water systems contractor. The bond ensures compliance of state laws and regulations. Failure to comply with state laws and regulations may result in a claim filed against the surety bond by the Department. If a claim is filed against the bond, the contractor, company, or property owner (named as the principal on the bond form) is responsible for repayment of the claimed amount if it is paid out by the surety.

The bond must be in place at all times while the registration is in effect. The premium will renew on the bond on an annually basis. If the bond is replaced or ownership has changed a new bond must be filed with the state. Failure to maintain a bond may result in a suspension of the registration.

Surety Bond Requirements:

A surety bond is required based on the number of years the applicant has been registered.

• New applicants are required to have a $20,000 surety bond for three years.
• Established applicants having been registered for more than three years, are required to have a $10,000 surety bond.
• Established contractors who have had a suspension or have allowed their registration to lapse for more than 1 year are required to have a $20,000 surety bond for three years.
• The original surety bond with the power of attorney is required with the registration application and for each annual renewal. The legal company name on the surety bond will need to match the business name registered with the Ohio Secretary of State.

ODH Registration Requirements:

1. Complete the registration application and pay the application fee.
2. Applicants that have registered with the Ohio Secretary of state will need to provide a copy of the certificate of filing or fictitious name registration.
3. Provide a copy of your insurance binder with at least $500,000 general liability insurance.
4. Veterans will receive expedited processing of registration with proof of service.
5. Mail the completed application, required copies and fee payment to: Ohio Department of Health, BEH Private Water Systems, PO Box 15278, Columbus OH 43215-0278

Licenses and bonds must be renewed annually by December 31 of each year.

How Much Will This Bond Cost?

The premium that you pay for an Ohio Private Water Systems Contractor Surety bond is dependent on credit. Our rates for $10,000 bonds start at $100 with good credit, and our rates for $20,000 bonds start at $200 with good credit. Contact our Surety Bond Specialists for a free quote that fits your specific needs.

Did You Know?

Employees of registered companies are not required to obtain their own registration. An employee is defined as to someone having direct to have direct supervision, a person that performs services for another, the company is liable for the services of the employee, and receives compensation for the work performed.

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