Cosmetology school bonds are required in many states if a person or business wants to operate a school that offers training in the cosmetology field. A bond must be acquired and kept active for as long as the school is in operation. You might be wondering why cosmetology school bonds are necessary. They’re actually designed to financially protect the students that attend these schools. Having these bonds in place ensures that a student either receives the tuition they paid for or financial compensation should the school fail to provide the agreed upon education. Let’s take a look at some of the key facts about cosmetology bonds:
Cosmetology bonds provide a form of credit to the school’s owners
The bond acts as a form of credit for the school owners. The bond amount is actually the limit of what the bond will pay out should a claim be made against the school. If the bonding company does pay out on a bond the bond principal ( the person who took out the bond) will be required to provide full reimbursement to the surety.
They can be known by other names:
Cosmetology bonds may also be known as barber school bonds, aesthetics school bonds, and manicure school bonds.
The bond amount varies by state
In many states, there is a minimum or set rate for a cosmetology bond. However, in some states the bond is based on the gross tuition rates. In order to get a rate based bond, you’ll need to know the school’s tuition costs and number of students.
Not all states require cosmetology school bonds but many do
Some of the states that require these bonds include: Alabama, Florida, Idaho, Louisiana, Massachusetts, Michigan, Minnesota, New Jersey, New Mexico, Ohio, South Carolina, Tennessee, Washington, and Wisconsin.
You’re credit score and business finances will be used to calculate the bond premium
Cosmetology school bonds are underwritten, this means that the underwriter needs to calculate the risk your bond poses. They use your credit history and business experience to assess your financial security.
Get the cosmetology bond you need to comply with state regulations
Cosmetology school bonds are an essential part of the licensing process in many states. Although the thought of attaining a bond can feel overwhelming the process is actually relatively quick and simple if you use an experienced bond company like Viking Bond Service. In fact, you can get a bond quote within 24 hours when you submit our online application form. For help with all of your bonding needs and advice on acquiring the right bond for your school contact our experienced team today.