Why do estheticians need insurance?
While it is not a mandatory requirement by law, it is recommended for anyone who works within the esthetics industry to have insurance, especially if you travel to private clients to offer services, or you own a small business, as you could be vulnerable in the event of a loss.
Having specific insurance is important because the esthetics industry is built around providing services and expertise to your clients. When you treat someone as an esthetics professional, their health and wellness is essentially in your hands. A simple error that leads to a claim could result in devastating losses for your business. An insurance policy may help to protect you from those types of potential losses.
The esthetics industry is one that unfortunately comes with several risks, which can include:
- A lawsuit due to slander or libel against an unsatisfied client
- Clients suffering from allergic reactions, skin burns or infections due to different products
- Chemical or wax burns on the skin or eye areas
- Infections as a result of poorly sanitized tools
Liability insurance for estheticians
In any profession within the service industry, liability insurance is arguably the most important type of coverage to have. Liability coverage makes your insurance company the viable party if a loss was to occur, and transfers the majority of the risk associated with your business over to them.
There are two main types of liability policies for beauty professionals: General Liability and Professional Liability. These are two separate parts of your policy and both are important because they protect you from different aspects of liability.
This coverage, also known as errors and omissions insurance, protects you specifically from losses and risks that could occur if a client were to hold you responsible for any errors in your work. Professional Liability may cover court fees, attorney fees, settlement agreements, and loss of wages due to the lawsuit process.
This type of coverage will protect you from claims made as a result of the general risks associated with doing business. Some examples of risks covered under this policy include: personal injuries due to defamation, bodily injury as a result of a slip or fall on your premises, and damages to client property while providing your services at their place of residence.
Other coverage options to consider
There are many other insurance coverages that a business or industry professional could add to their policy, depending on the unique needs of your business.
Here are some of the coverage options to consider when deciding what additional protection you want added to your esthetician insurance policy.
Property and Contents Insurance
This type of insurance is generally required regardless of whether you are renting, leasing or you own a property. Property insurance may protect you from losses due to natural disasters, fires or acts of vandalism. Content insurance may protect your belongings inside the building if losses were to occur as a result of theft, fire damages, etc. This is especially important if you have any expensive equipment or appliances used to provide your services. Contents insurance is also good for freelance or independent contractors who have a large haul of supplies needed to lend their services.
Equipment Breakdown Insurance
Many professionals within the beauty industry use high-end machinery, like tanning beds and laser machines, on a daily basis to conduct their services. If that equipment were to suddenly break down, your daily operations and overall business could suffer. Equipment breakdown insurance protects you in an event like this by helping with the repair and replacement costs of your machinery.
Commercial Auto Insurance
If you are an independent contractor or freelancer who travels to different locations for work, it is important to have commercial auto coverage on your policy. This is because if you get in an accident in your vehicle while heading to or from a business opportunity, your personal car insurance policy may not cover the losses.
Business Interruption Insurance
This coverage applies mostly to those who provide their services in a physical brick-and-mortar location, such as a tattoo shop or hair salon. If a disaster or event were to occur and ultimately interrupt your daily operations, business interruption insurance would protect you.
How much does esthetician insurance cost?
Just like other insurance policies, there are multiple factors that go into determining the cost of esthetician insurance. These factors can include things such as how much equipment you use, your educational background, how much experience you have in your field and where you do your business.
Each policy is tailored to the unique needs of the business so the price will be based on how much coverage you decide to add to your policy. Not all coverage options are right for everyone; remember to select the necessary coverage types for your own personal circumstances.
It’s important to remember that accidents happen no matter how careful you are, and may be unavoidable. Esthetician insurance allows you to make sure that you are prepared for anything that may occur.
Have more questions about esthetician insurance? Get in touch with one of our licensed insurance professionals.
How to reduce the risk of an insurance claim
Whether you’re new to the industry, or you have established a successful career, some basic risk management tips can prevent a loss that takes time away from your practice and possible financial expense:
Consider the following to help ensure your clients know what to expect from you:
- Communicate with new clients. Advise them about what to expect from their sessions. Some may have unrealistic expectations and be looking for timely results. Set the expectation early and check in to monitor their progress.
- Maintain a clean location and equipment. Good housekeeping is your best means against general liability claims.
- Keep accurate and up to date files on all patients. Having written reference notes about your clients and their treatments helps you present the professional image expected in today’s competitive health space
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