Best Insurance for Estheticians November 2024

What is esthetician insurance?

Esthetician insurance is a type of business insurance that protects you against the risks of working in the beauty, spa, and wellness industries.

It typically provides coverage for claims related to bodily injury, property damage, or personal injury caused by your professional services. It may also cover legal fees that result from these claims.

Esthetician insurance is typically a combination of different business insurance policies, such as general liability, professional liability, commercial property, and workers’ compensation coverage. The specific types of coverage you need depend on your particular practice and the risks your business faces.

Professions that need esthetician insurance

Some common professions in the health, wellness, and beauty industry that should have esthetician insurance coverage include:

• Cosmetologists and some stylists
• Massage therapists
• Skincare specialists
• Spa owners and therapists
• Waxing service providers
• Medical estheticians

Some states legally require cosmetology insurance as a condition of professional licensing. However, even if you aren’t required to have insurance to operate, it’s still recommended that you carry appropriate and adequate coverage to protect you and your business from the specific risks you may encounter.

If you need help finding the right coverage, an insurance professional can help you understand your coverage needs and options.

Why do estheticians need insurance?

You need esthetician insurance to protect yourself from financial losses that may result from claims related to injuries or damages caused by your professional services.

As an esthetician, you may offer services like skincare treatments, facials, and waxing. While these services can help clients feel and look better, they can also lead to injuries, infections, or other complications, which could result in a lawsuit.

For example, if you accidentally burn a client during a facial treatment and they sue you for damages, your insurance policy could cover the costs of the lawsuit and any damages. Without insurance, you would be responsible for paying these costs out of pocket.

Ultimately, esthetician insurance can give you a sense of security in knowing that your business and financial well-being are protected in case of a lawsuit or claim.

What kind of insurance do estheticians need?

Esthetician insurance often combines several types of coverage to protect you against a wide range of claims. The kind of coverage you needs depends on the risks you face.

These are the most common kinds of insurance that you may need as an esthetician:

General liability

It protects your business from financial losses resulting from accidents that happen on your premises or as a result of your services. It can cover claims related to bodily injury, property damage, and advertising injury, as well as cover any legal fees associated with the claim.

For example, if a client slips on a wet floor at your salon, general liability insurance can help cover their medical bills and any legal fees that may result from a lawsuit.

Professional liability (E&O)

Professional liability insurance, also known as errors and omissions (E&O) insurance, protects you from the cost of settling or defending against claims resulting from alleged negligence, errors, or omissions in your work.

Let’s say a client accuses you of providing a low-quality treatment that does not meet their expectations. Professional liability insurance may cover any legal expenses or settlements resulting from the accusation.

This kind of coverage helps to limit the fiscal impact of potentially significant sums should a claim be made against your practice for rendering services that caused harm to clients.

Workers’ compensation

Workers’ compensation insurance is another essential form of coverage for any business — particularly for those with employees. It ensures your employees receive financial compensation should they become sick or injured while on the job. Workers’ compensation insurance covers their medical costs, lost wages, and other expenses related to on-the-job injuries or illnesses.

Unlike other forms of business insurance, workers’ comp is legally required in almost all states (except Texas) for any business with employees. Even if you don’t have employees, you can still take out a workers’ comp policy to protect yourself if you get hurt or sick while working.

Commercial property

Commercial property insurance covers your business’s physical property and assets, such as the building and equipment. If your property is damaged or lost due to things like fire, theft, vandalism, natural disasters, or other hazards, commercial property insurance can cover the replacement or repair costs.

For example, if a power outage damages the electrical system or equipment at your salon, commercial property insurance could help pay for repairing or replacing the damaged property.

This type of coverage is especially important if you own or lease your business space or if you use expensive equipment. In the case of an unforeseen event, it can help you get back up and running fast.

What does esthetician insurance cover?

Some common things esthetician insurance protects against include the following:

• Slips and falls
• Bodily injuries sustained by clients
• Allergic reaction to treatments
• Incorrect treatment
• Unsanitary treatments
• Stolen equipment
• Damage to rented or leased property
• Incomplete or inaccurate information conveyed in advertising
• Employee illnesses and injuries sustained on the job

The specific coverage included in your insurance depends on the insurance provider and the level of coverage selected.

Typically, esthetician policies include some form of general liability and professional liability coverage. General liability insurance covers third-party claims for bodily injury, property damage, and advertising injury. Professional liability insurance covers claims for professional errors or negligence.

You may also include other types of coverage depending on the daily risks you face. If you need help deciding what type of coverage to get, an insurance professional can you assess your needs and options.

Real-world examples of covered claims

Because esthetician insurance protects against a wide range of risks based on the particular types of coverage included, you can file many different types of claims using an insurance policy.

Here are a few real-world examples of claims that could be covered using an esthetician policy:

• A customer files a claim for $63,000 after suffering an adverse reaction to facial treatment ingredients. Insurance covers medical bills for subsequent treatments to combat the reaction.
• A customer sues an esthetician for scarring sustained from eyebrow waxing appointments. Insurance covers the $55,000 cost of legal defense and settlement costs.
• A client sustains chemical damage to their eyes during a lash appointment. Insurance reimburses the client for subsequent medical bills following a claim of $20,000.
• A customer suffers torn skin during a Brazilian wax. They file a claim to cover medical payments plus pain and suffering. The insurance company pays the cost of $25,000.

What is not included in esthetician insurance?

While it covers many risks, esthetician insurance doesn’t protect against everything.

For example, general liability does not cover claims or losses that result from gross employee negligence or intentional wrongdoing. Similarly, if you were aware that your work did not meet professional standards, any losses related to it would not be covered by professional liability insurance.

Ultimately, coverage depends on the policy. That’s why choosing an option that covers your specific risks is important. Sometimes, it may be necessary to get policy add-ons to provide coverage tailored to your specific circumstances.

How much does esthetician insurance cost?

Typically, you can expect to pay $500 to $1,500 per year for basic esthetician insurance.

However, if you have employees or need more comprehensive coverage, you can expect to pay $2,500 or more per year for coverage.

The cost of insurance varies based on several factors, including the amount and types of coverage included, the size and location of your practice, your claims history, and your annual revenue.

Some factors that impact the cost of esthetician insurance include:

• The types of treatments you offer
• Where your salon is located
• The number and type of employees who work for you
• Whether you own your facilities
• Your claim history
• Your annual revenue
• The value and types of equipment you use in your practice

What should I consider when choosing an insurance provider?

When shopping for insurance, look for a provider that offers the coverage you need at an affordable price. You’ll also want reliable customer service should you need to file a claim.

Consider these factors before choosing an insurance provider:

• The provider’s reputation and customer reviews
• Types of coverages offered and whether they meet your business needs
• Policy exclusions listed in policy documents
• The cost of coverage and any discounts available
• Any specialized add-ons for estheticians, such as product liability coverage
• Customer service and claims assistance hours and availability
• The ease of application and any required paperwork
• Whether your policy can be administered online
• Any additional benefits offered, such as risk management advice or access to legal counsel