Surety Bonds for Operating a Cosmetology School

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What is a cosmetology school bond?

A cosmetology school bond is an agreement between three parties: a government agency, a surety company, and a cosmetology school. The agreement ensures the school meets industry-related obligations set by the government agency. This license and permit bond protects students’ unearned, prepaid tuition.

In some states, the bond is a licensure requirement. If you want to operate a cosmetology school, barber school, esthetics school, or manicure school that collects tuition, you may need this bond.

What does cosmetology encompass?

The cosmetology field encompasses enhancing the nails, skin, and hair. An experienced cosmetologist may be an expert at applying therapies, treatments, and cosmetic procedures to customers’ hair, skin, or nails. Specific professions may include the following:

  • Barber
  • Hairstylist
  • Esthetician
  • Nail technician
  • Electrologist
  • Makeup artist

Get Your Cosmetology School Bond:

Quick Takeaways

  • Cosmetology school bonds protect students’ unearned, prepaid tuition. 
  • You may need this bond to acquire and maintain a license to run a cosmetology school in your state.
  • The minimum required bond amount in many states is $10,000, so your premium could be as low as $100 per year.

How do cosmetology school bonds work?

The three parties involved in ensuring that a cosmetology school will operate according to state laws and in good faith include:

  1. Principal: Cosmetology School
  2. Obligee: State requiring the bond
  3. Surety: Financial institution that underwrites and issues the bond

Some states that require this bond are Idaho, Massachusetts, Minnesota, New Jersey, South Carolina, and Wisconsin (among others). Find out if your state requires this bond.

If your school fails to comply with industry rules or regulations and someone files a claim against your bond, the surety can settle the claim for you. However, the principal is required to pay the surety back for the damages.

How much does a cosmetology bond cost?

The cost of your bond will depend on the state you live in, the bond amount you need, and the premium rate. You will pay a small percentage of the total bond amount (penal sum). The minimum penal sum in many states is $10,000. The cost to you could be as low as 1% ($100) if you have a good credit score.

You may need a cosmetology school bond to acquire and maintain a license to run a cosmetology school in your state. The bond will financially protect your students’ prepaid tuition in case your school breaches an enrollment contract or stops operating for some reason.

Get a Cosmetology School Bond in Your State

ZipBonds offers the fastest and most secure option for getting the surety bonds you need. Our all-digital platform is intuitive and straightforward. Apply today online or call us at 888-435-4191 to speak with an agent directly.



Founders Ryan Swalve and Zach Mefferd formed the vision for when they realized how overly complicated it was to help clients place surety. The frustration of being unable to incorporate the technology they’d used in other insurance-focused projects left them thinking “there has to be a better way.”

Fast forward a couple of years, and that better way is the impetus of everything we do at ZipBonds. We constantly look for innovative ways to improve the bonding process for our clients and agents. Our team comprises individuals who understand all angles of surety – for companies, agencies, and individuals. Incorporating everyone’s point of view to improve the process while simultaneously integrating cutting-edge technology is what sets our business apart.