What Is a Cosmetology School Bond?
A cosmetology school bond is a contract between a beauty school, a government licensing entity and a surety provider. These bonds guarantee that schools fulfill their regulatory obligations and protect prepaid tuition funds if a school goes bankrupt.
How Does a Cosmetology School Bond Work?
If a cosmetology school breaks its licensing regulations, students or government entities can file a claim on the bond. For example, if a beauty school collects prepaid tuition and goes out of business, the surety bond ensures that students receive reimbursement for unearned tuition expenses.
Who Needs a Cosmetology School Bond?
Cosmetology school bonds are often mandatory for institutions offering programs in cosmetology, barbering, esthetics, or nail care that collect tuition. Many states require these bonds as part of the licensing process to uphold educational standards and protect students.
Currently, Hawaii, Mississippi, Oklahoma, Montana, Louisiana, Massachusetts, South Carolina, New Jersey, Alabama, Michigan, Ohio, Washington, and Wisconsin all require beauty school bonds.
How Much Do Cosmetology School Bonds Cost?
Cosmetology and beauty school bond premiums typically cost 0.75-5% of the bond amount based on credit score. Bond coverage requirements vary by state. Select your state below to get a personalized quote for a beauty school bond in your area.
How Do I Get a Cosmetology School Bond?
SuretyBonds.com provides the fastest and easiest way to get a cosmetology school bond. Just follow these quick steps:
- Apply online at SuretyBonds.com
- Get a free quote within one business day
- Purchase your bond online or over the phone
Once you receive your bond, file it with the obligee requiring the bond.
How Do I Renew My Cosmetology School Bond?
Cosmetology, barber and beauty school bonds typically expire annually. A SuretyBonds.com representative will contact you with renewal instructions and an invoice to keep your bond active before your term ends.
