TLTR: With years of study and licensing at stake, are you sure you want to practice on your customers without esthetician insurance coverage? Learn the basics about esthetician insurance and why you need it in this article.
With the rising awareness of the importance of skincare, estheticians are among the most sought-after professionals today. The global beauty market is thriving with a revenue of $511 million in 2021, as stated by Statista.
What’s more, the U.S. Bureau of Labor Statistics states that the esthetician industry is projected to grow 17% in the next five years. The profession is certainly trending right now.
It’s a wonderful career choice. But, sadly, not without its risks.
For instance, a customer may ask for a facial session only to find that they’re allergic to an ingredient in a product your business used on them. Depending on the situation, you could be found responsible for their medical payments. The customer could claim physical and emotional injury and file a legal suit against you. The financial damages could reach into the hundreds of thousands… maybe more. That’s all of your hard work and painstakingly acquired skills down the drain over one appointment.
What is Esthetician Insurance?
Esthetician insurance, also known as aesthetician insurance, ensures that liability claims, property damage, stolen equipment, or malpractice claims don’t bankrupt your business. Think of it as a dermaplaning session for your career. As third-party injuries, legal fees, and damaged property show up, esthetician insurance kicks in and cleans the slate financially!
What Kind of Insurance Does an Esthetician Need?
Insurance, while important for everyone, isn’t a one-size-fits-all solution. General liability insurance can protect you against some of the general risks. But it’s not enough on its own. You need coverage that’s specifically geared to your job and its associated risks.
With the rise of the coronavirus pandemic, it was hard for businesses to secure in-person clients in 2020. What if something similar stops your business from operating smoothly? Or, what if your equipment is damaged for whatever reason, and you can’t perform skin procedures on your clients?
Esthetician insurance is a specialized insurance policy designed with estheticians in mind. It combines all the great things about professional liability insurance and general liability insurance and tailors the policy as estheticians need it. Let’s take a brief look at those policies and a few more that apply to businesses in general, including estheticians:
Professional Liability Insurance
If a disgruntled client decides to take you to court, regardless of whether you’re at fault, you’ll be paying hefty fees. Professional liability insurance protects you from these legal liabilities. Liability insurance for estheticians is extremely important. You work directly with your clients, making you vulnerable to third-party liabilities every day.
General Liability Insurance
Commercial general liability insurance protects your business from third-party injury claims and property damage. Let’s say you leave a jar of hot wax out on the table while tending to a client. Another distracted client accidentally puts their hand in the jar and suffers serious burns. They can hold you liable for their medical expenses. Commercial general liability coverage helps you cover these costs.
This policy not only protects you from third-party liabilities, medical bills, and stolen equipment coverage but also adds value to your business. Proof of insurance can get you tax deductions, access to a mortgage, and engender trust from your vendors.
Workers Compensation Insurance
If you’ve hired employees for your workplace, you can’t rely on business insurance coverage alone. Your employees need dedicated coverage covering them in case of injury, illness, or death due to workplace mishaps. In case of work-related injuries, workers compensation insurance pays for your employees’ medical costs and for any lawsuits they may file against you.
Business Owners Policy
If you own and operate an esthetician business, you need to safeguard your workplace with a business owners policy (BOP). The U.S. Small Business Administration states that 40% of small businesses do not survive a disaster within the first two years of operating. A BOP keeps your company safe from property damages, losses due to business interruptions, and third-party liabilities.
Business Interruption Insurance
Insurance coverage for when your business pauses operation is imperative. In 2020, with the surging COVID-19 pandemic, non-essential businesses were closed indefinitely. Most insurance policies don’t cover pandemics, but you can always prepare for the closure of your business. While this insurance coverage isn’t a standalone policy (included in the BOP), Business Interruption Insurance (BII) stands out.
Employment Practices Liabilities Insurance
Employment practices liabilities insurance (EPLI) covers a wide range of liability concerning your employees from the hiring process to the firing. EPLI provides compensation when your employees file a lawsuit against you under the claims of discrimination, sexual harassment, retaliation, breach of contract, and wrongful termination.
What Does Esthetician Insurance Cover?
Anything remotely risky regarding your profession as a licensed esthetician is covered by esthetician insurance. Here’s a list of the most common risks:
- Allergic Reaction
- Stolen Equipment
- Slip and fall injuries
- Unsanitary Treatment
- Property Damage
Insurance providers came up with esthetician coverage to tackle these risks and provide valuable and important benefits.
If you are a licensed esthetician and own an esthetician business, you need to focus on more than just third-party liabilities. Your responsibility is also to maintain a safe place for both your clients and employees. That’s why, on top of the third-party coverage, you can ask for workers compensation insurance coverage and EPLI.
Esthetician Insurance for Malpractice Claims
No matter how long you’ve been in this industry, malpractice coverage, also known as professional liability, is recommended. Anything you dismiss as minor inconveniences could potentially sprout unexpected malpractice claims in the form of allergic reactions, slip and fall injuries, or waxing injuries.
Liability coverage can only protect you from common damage, injuries, and legal costs. But when clients hold you accountable and sue you after getting a treatment done at your salon, it falls short.
You might perform laser hair removal on one of your clients. Some weeks later the client returns angry and claims that the laser procedure has damaged their skin. Next, they file a malpractice lawsuit against you.
Not only will this reflect poorly on your business, it will also drain your finances. Malpractice insurance protects your profession from these lawsuits that could otherwise cost you your career.
How Much is Esthetician Insurance?
A standard policy provides coverage of anywhere from $1,000,000 to $2,000,000. Monthly premiums can range from $27 to $39 for small-range estheticians. However, multiple factors affect esthetician insurance cost:
Types of services you provide
If you provide laser procedures and vein treatments, you could be exposed to many expensive liabilities. Insurance providers are likely to see you as a higher-risk client and charge you a higher liability coverage premium.
Your experience as an esthetician
A new esthetician just out of training will pay more for esthetician liability insurance than one with years of experience. Newer professionals are more likely to get hit with malpractice claims than older ones. Don’t worry. As time goes by, insurance policy premiums are bound to become less expensive.
Raising or lowering your deductibles will affect your premiums. Deductibles are the amount of money you agree to pay during a claim before the insurance kicks in. Insurance companies will happily lower your premiums if you raise your deductibles.
Your claim history
Have you been a responsible esthetician with less than three claims made in the last five years? If yes, your insurance providers will offer discounts.
Rather than looking for the cheapest esthetician insurance from the get-go, we recommend that you take the time to figure out what coverage you need. Cheaper premiums may seem like a good idea until a mishap occurs and your insurance provider denies your claim.
When to Get Esthetician Insurance?
Once you’re a practicing esthetician, we recommend purchasing insurance coverage from day one.
If you want to obtain your esthetician insurance as soon as possible, we recommend having the following documents at hand when you speak with an agent:
- Annual income statements
- Payroll statements
- Other insurance coverage documents or claim documents if available
- Credit history
Once the insurance company looks over your application, they will decide whether to sell insurance to you. You could wait for up to two weeks until they mail you proof of insurance. Next, you will make the payments to the company. Voila, you’ve successfully purchased esthetician liability insurance.
What is the Best Esthetician Liability Insurance?
The best esthetician liability insurance is one that completely safeguards your business. If you’re having trouble finding a good quote, you need to talk to an insurance expert. Insurance agents are your best bets at getting exactly the coverage you need. If you’d like to save money and time, find a local insurance agent in our agent directory right now!
Looking For an Esthetician Insurance Agent Near You?
As your dreams evolve and change, you must have adequate protection. We want you to feel secure and in control of your esthetician coverage, so we recommend speaking with one of our insurance representatives to learn more about tailoring your esthetician business coverage to your specific needs.
When looking for an esthetician insurance agent, keep in mind that a good one will do more than just sell you a policy. These agents are as unique as the clients they serve. As a result, as a buyer, you must do your homework to find the best agent for your coverage needs.
Here are a few ways to get you started.
Research online: Start by looking online for esthetician insurance agents in your local area. Check their websites and read reviews to get a better understanding of the services they offer, as well as their customer reviews.
Ask for referrals: Ask friends and family who they use for their esthetician insurance. This can provide you with some insight into the quality of service they offer and may even provide you with some recommendations.
Consult with a professional: Contact the National Association of Insurance Commissioners (NAIC) or the Department of Insurance in your state to get a list of licensed esthetician insurance agents in your area.
Schedule an interview: Once you have narrowed down your list of potential agents, schedule an in-person interview with each one. Ask questions about their experience, the types of policies they offer, and the cost of coverage.
Compare quotes: Once you have gathered all the necessary information from each agent, compare the quotes to find the best coverage for your particular needs. A good esthetician insurance agent should provide you with competitive rates and quality service.
One of the best ways to find an agent in your locality is through Agency Height. You can rest assured that the agents you find on Agency Height are among the best in the industry and your area.
Frequently Asked Questions
Where Can I Find An Esthetician Insurance Agent?
If you don’t have an esthetician insurance agent, you can find one through your insurance provider. Another way to find one is through referrals from friends and family.
You can also use the Agency Height directory to find top esthetician liability insurance agents in your area.
Do Estheticians Need Insurance?
With insurance, you’re not only protecting yourself from financial ruin, but you’re also protecting your clients from the costs associated with accidental injury. Insurance for estheticians supports the growth of your career and supports your finances.
Estheticians need to consider these types of coverage in addition to an esthetician insurance policy:
Do I Still Need Insurance if I am an Esthetician Trainee?
As an esthetician trainee, you will still be practicing with your clients. If you make a mistake or unexpected situations occur while practicing, you will be held liable for compensation. Esthetician insurance will save you the pain of paying out of your own pocket.
What is the Difference Between Esthetician Insurance and Beauty Insurance?
Beauty insurance is coverage designed for beauticians who work on their clients’ skin, hair, and nails. Insurance for estheticians is designed for those professionals who specialize in skincare. Beauty insurance is a broad coverage encompassing many areas, but esthetician insurance focuses exclusively on estheticians.
Does the Law Require Esthetician Insurance?
Insurance requirements vary by state. Most states would require all small businesses to purchase one or a combination of general liability insurance, workers compensation insurance, commercial property insurance, commercial auto insurance, professional liability insurance, and employment practices liability insurance.
Is Esthetician Insurance Tax Deductible?
Esthetician liability insurance can be tax-deductible because it’s considered a business expense. Talk to your insurance agent for more information.
January 27th, 2023
- What is Esthetician Insurance?
- What Kind of Insurance Does an Esthetician Need?
- What Does Esthetician Insurance Cover?
- Esthetician Insurance for Malpractice Claims
- How Much is Esthetician Insurance?
- When to Get Esthetician Insurance?
- What is the Best Esthetician Liability Insurance?
- Looking For an Esthetician Insurance Agent Near You?
- Frequently Asked Questions
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