Who is esthetician insurance for?
This policy is good for anyone who works within the hair and beauty industry, whether you own your own business, work for a larger corporation or are an independent contractor. If you work within any of these areas, then esthetician insurance is for you:
- Eyelash Extensions. Perms and Tints
- Nail Salons
- Hair Salons
- Makeup Artistry
- Teeth Whitening
- Waxing and Threading
- Day Spas
- Tattoos and Piercings
Do professionals in the beauty industry need insurance?
While it is not a mandatory requirement by law, it is extremely recommended for anyone who works within this industry to have insurance. Especially if you travel to private clients to lend your services, or own a small business, as your smaller size makes you more vulnerable in the event of a loss.
Having insurance is so important because the beauty industry itself is built around providing services and expertise to your clients. When you treat someone as a beauty professional, their health and wellness is essentially in your hands. A simple error could result in devastating losses for your business. An insurance policy may help to protect you from those potential losses.
The esthetician industry is one that unfortunately comes with a lot of risks that could be detrimental to you. Some risks to be aware of 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
- Fires caused by candles or oils
- 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 losses were to occur, and transfers the majority of the risks associated with your business over to them.
There are two main types of liability policies for beauty professionals: General Liability and Professional Liability. They are two separate parts of your policy, and are both incredibly important to have. This is because they protect you against completely 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 beauty professionals should consider
There are so many different add-ons that a business or industry professional could add to their policy. Each is equally as beneficial and important to have on a policy, but some many seem more valuable to you than others. This is because all businesses and people have different circumstances, thus making certain types of coverage more relevant to you individual needs. Here are some 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 if you are renting or leasing a property, but is still something to consider if you are a property owner. property insurance may protect you from losses due to things such as 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 machinery or appliances used to provide your services, such as large hair dryers or tanning beds. Contents insurance is also good for freelance or independent contractors who have a large haul of supplies needed to lend their services, such as makeup or hair tools.
Equipment Breakdown Insurance
As mentioned previously, a lot of 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.
This type of coverage is in place to cover the medical costs and/or lost wages of employees who get sick or injured while on the job. Workers compensation is especially important for you to consider fi you work in a salon/spa with lots of chemicals, dangerous machinery or fire hazards.
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.
Fire Legal Liability
If your business provides services using flammable oils, or you light candles in order to add to your business’ ambiance, then this coverage is for you. You may be protected against losses due to legal settlements if sued over a fire that started on your premises.
How much does esthetician insurance cost?
Just like other insurance policies, there are multiple factors that go into determining the cost of professional beauty insurance, thus making it difficult to pinpoint a specific cost. 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.
The price will also fluctuate 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 can sometimes be unavoidable. Esthetician insurance allows for 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 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 of 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 house and equipment – good housekeeping is your best prevention against general liability claims
- Records – 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