If you are an esthetician, having an insurance policy will help protect your business. As estheticians, you can perform a procedure that may sometimes produce unexpected results. And one lawsuit from a customer can destroy your career and leave you struggling financially if you are uninsured.
Whether you are a waxing professional, skincare specialist, medical esthetician, or just a spa worker, you need the right policy that can protect you. Read on to learn more about esthetician insurance.
What is Esthetician Insurance?
Esthetician insurance has different types of small business coverage that is designed to meet several risks that come with the job. For instance, if your client suffers from an adverse reaction due to your treatment. And if someone sues your business, the general liability section of the policy will help cover the legal expenses.
Who should Purchase Esthetician Insurance?
An example of people that should purchase this policy is the following. Check them out below.
- Barbershop owners
- Beauticians
- Nail and hair salon owners
- Hairdressers
- Makeup artists
- Massage therapists
- Nail salons
- Spa owners
- Cosmetologists
- Estheticians
What Does it Cover?
This policy includes different types of small business coverages that cover various problems such as damaged tools, accidents, lawsuits, stolen inventory, and loss of income. You can start with a business owner’s policy. A business owner policy established good coverage by joining 3 coverages.
And it’s always cheaper than purchasing each coverage individually. Below are the 3 types of coverage listed in a BOP. You can purchase extra coverage on top of your business owner’s policy to design it to meet your business risks.
Business Liability Insurance
This essential coverage is also called the general liability coverage. It helps protect against accidental injuries and property damage to others. It also includes various issues like advertising injury, copyright infringement, and reputational harm. For instance, if a client slips in your spa, the liability part helps to cover their medical bills.
Commercial Property Insurance
This insurance coverage covers your esthetician location and equipment, including tools and inventory, against covered damage like fires, storms, theft, and vandalism.
Business Interruption Insurance
If your esthetician business needs to close for a short period due to a covered event like theft or fire, business interruption insurance will help cover your lost income. It is
Additional Business Insurance Types
A business owner policy (BOP) is a good start for your insurance plan as an esthetician. However, you need to increase coverage by adding extra coverage types. Here are some types of coverage you may want to add to your policy:
Commercial Auto Insurance
If you make use of a car for your esthetician business, it is a good choice to add a commercial auto insurance policy. Your personal auto policy won’t cover work-related incidents or accidents.
Just like BOP, the commercial auto policy joins together different coverages into a policy. Some of the coverage types you are expected to see include bodily injury liability, property damage liability, combined single limit, collision insurance, comprehensive insurance, medical payments and personal injury protection, and uninsured and underinsured motorist coverage.
Commercial Umbrella Insurance
Commercial umbrella insurance offers extra protection on top of your general liability coverage. For instance, if you are sued for about $800,000 and your liability limit is $500,000, the umbrella insurance will help cover the remaining $300,000.
Errors and Omissions Insurance
Also referred to as professional liability insurance, it protects your esthetician business from claims of professional mistakes, even if they have no merit. If a client sues you because a treatment doesn’t deliver promised results, E&O will help cover legal costs.
Hired and Non-owned Auto Insurance
This coverage helps cover injuries and property damage caused by you or your worker when using the personal or rented vehicles for business. For example, if your worker driving a rented car for work crashes into a truck, it will help cover the damages.
Workers’ Compensation Insurance
Workers’ compensation insurance is compulsory in most states, even if you have just one employee. It helps cover medical expenses, lost wages, and physical therapy if employees get sick or injured during work.
What does the Esthetician Insurance not Cover?
Just so you know, your policy won’t cover all unexpected incidents. Here are some of the several incidents it won’t cover.
- Government confiscations.
- Infectious diseases.
- Radioactive fallout
- War.
- Wrongful dismissal
- Flooding
- Fraudulent or intentional acts
- Earthquakes (will have to purchase a different earthquake insurance policy).
How much does Esthetician Insurance Cost?
According to Insureon, esthetician insurance costs about $70 per month for a BOP. However, your insurance costs will vary depending on various costs, such as the types of coverage you buy, types of services provided, kinds of business equipment and property, revenue, geographical location, employee count, and your claim history.
Where you can Purchase Esthetician Insurance
To put together your esthetician insurance policy, you will have to add different coverage types to meet your business risks. Some companies that offer small business insurance include
- Acuity
- Allstate
- American Family
- Auto-Owners Insurance
- Nationwide
- Next Insurance
- Progressive
- State Farm
- The Hanover
- The Hartford
- biBerk (Berkshire Hathaway)
- Chub
- Frankenmuth Insurance
- Hiscox
- Travelers
Although these insurance companies make use of similar factors to set their premiums, each has its unique way of calculating them. It is advisable to compare different business insurance quotes to get the perfect price for your business.
