Ohio Unemployment Compensation Bond

An Ohio Unemployment Compensation Bond is a type of surety bond that is required by some businesses by the Ohio Department of Job and Family Services. It guarantees that the business will pay unemployment benefits to its eligible former employees if it becomes insolvent or goes out of business. If the surety company pays a claim on the bond, it will seek restitution from the bond principal (applicant).

How to Get an Ohio Unemployment Compensation Bond

At Surety1.com we make it easy to obtain this surety bond. Our simple, three step process is:

1. Complete the easy to navigate and secure online application. ¹
2. Review the free, no obligation quote from one of Surety1’s professional surety bond agents, usually within one business day.
3. Sign some paperwork and pay the bond premium

Once these steps have been completed, the Ohio Unemployment Compensation Bond will be shipped to the bond applicant.
^{1 -The name of the applicant on the surety bond application must match exactly the full legal business name of applicant for the license.} 

Surety1.com is a service of AssuredPartners one of the largest and fastest growing insurance agencies in the nation. Representing over a dozen surety bond companies, Surety1.com is the premier online provider of surety bonds nationwide since 2003.

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Bond Amount and Cost

The bond amount for each organization is not a fixed value and is determined based on two factors:

• 3% of your organization’s wages: This refers to the total wages paid for employment that would have been taxable if your organization were a subject employer during the four calendar quarters immediately preceding the effective date of the election.
• An amount determined by the Ohio Department of Job and Family Services (ODJFS): In some cases, ODJFS may set a different bond amount based on their own assessment.

Therefore, to know the specific bond amount for your organization, you’ll need to contact ODJFS directly. They can be reached at:

• Phone: 1-877-648-0942
• Website: https://unemployment.ohio.gov/ (you can use the “Contact Us” option)

The cost of the surety bond is usually between 1% and 3% of the bond amount, subject to a minimum premium and fees of $150. Surety1 will shop its many markets to procure the right price at the right terms.

Who needs the Surety Bond?

Who needs an Ohio Unemployment Compensation Bond?

• Reimbursing employers: These include any employer, not just non-profits, who elect to make payments in lieu of contributions to the Unemployment Compensation Fund. Reimbursements cover unemployment benefit charges on a dollar-for-dollar basis.
• Non-profit organizations: Non-profits approved under specific sections of the Ohio Revised Code can choose to be reimbursing employers and, therefore, require a bond.