From harsh chemicals to hot waxes, an esthetician’s work carries some risk. You’re an expert, but accidents happen, and so do lawsuits. If you want to protect your business from costly claims of negligence or malpractice, it’s time to look into esthetician insurance.
But what is esthetician insurance? And do you really need it?
You’ve come to the right place! We teach you everything you need to know about esthetician insurance and provide tips on picking the right policy.
What is Esthetician Insurance?
We know you take every precaution to keep your clients safe. But risks are always involved when treating a client’s skin and body. One misstep and a $200 dollar appointment can quickly turn into a $20,000 lawsuit (even when it’s not your fault). Without esthetician insurance, you can end up paying out of pocket for legal fees and medical bills if an accident occurs.
Esthetician insurance helps you take on all the risks of running a successful spa business. Insurance providers sell “esthetician insurance” as a bundle of popular business insurance. So, each policy will be different.
Here are the most common types of protection included in an esthetician insurance policy.
General Liability Insurance
General liability insurance covers you for accidents, injuries, or damages to your client’s property while you’re treating them. Let’s say a client claims their eyebrows were scarred after an appointment or their skin tore during a wax session.
General liability insurance helps you pay for medical bills, property repairs, legal fees, and settlements if your client makes a claim against you. This is pretty standard coverage. So be prepared for spa owners to ask for proof of general liability insurance before you start practicing in their space.
Remember, general liability is third-party coverage, i.e. it doesn’t apply to you or your staff.
Professional Liability Coverage
Everyone makes mistakes. And sometimes people accuse others of mistakes they didn’t make. Professional liability insurance protects your esthetician business if a client claims you were negligent with your services. You might know it as errors and omissions insurance.
A client might accuse you of recommending expensive and unnecessary treatments, misrepresenting the terms on your esthetician contracts, or giving them inaccurate post-treatment advice. If that’s the case, professional liability covers the cost of your legal fees.
Product Liability Coverage
General liability can cover injuries caused by products used during the appointment. But, if you sell stand-alone products to clients from your booking site or give them samples after the session, you need a bit more coverage. Product liability insurance adds an extra layer of protection if your client claims the products you made or sold caused an adverse reaction or illness.
That’s why it’s always a good idea to get their medical history before the session. PocketSuite makes this super easy. All you have to do is add an intake form to your appointment scheduling page.
Business Property Insurance
You worked hard to build the spa of your dreams. Why not protect it? Business property insurance helps pay for repairs and replacements if your property or equipment is lost, damaged, or stolen. It’s also called commercial property insurance, and it’s a lifesaver!
Business property insurance covers everything you use to run your business, like your brand-new esthetician chair, an expensive facial steamer, or essential documents. It can even replenish your income if you miss work due to property damage.
Some esthetician insurance policies also include rental damage coverage. Rental damage is a lot like business property, but it protects the things you don’t own. This is perfect if you rent a booth at a spa or equipment from a studio. It’s sure to keep your landlord or spa owner happy.
Cyber Liability Insurance
Technology makes it so easy to keep track of your clients. And your clients count on you to keep that information safe. Cyber Liability Insurance protects your business if clients’ info is leaked during a data breach. If your system is hacked, you can provide them with financial assistance and support. And it helps you pay for repairs and lost income during a cyber attack.
Give yourself some peace of mind by using PocketSuite to store sensitive client information like emails, phone numbers, and credit cards. PocketSuite keeps your clients’ data safe.
Commercial Auto Insurance
As an esthetician, you know business doesn’t stop in the treatment room. Sometimes you’re on the go, in-between spas, or running errands. Commercial auto insurance helps pay for repairs and medical bills if a car accident occurs on the clock. Most states require commercial auto insurance if you or your team use a dedicated business vehicle. And if you use a personal car to make house calls and deliveries, you might have to get a business endorsement on your personal auto policy.
Workers’ Compensation Insurance
You care about your team just as much as your clients (sometimes more!) So, you want to get your hands on a workers’ compensation policy. Workers’ compensation covers employee medical fees and sick pay if they’re hurt during a treatment session or get sick on the job.
What Does Esthetician Insurance Cover?
Esthetician insurance coverage varies from provider to provider. So, it’s essential to keep your eyes on the details. Here are some key coverage options to look out for in your esthetician insurance policy:
- Covered Services: Some companies offer coverage on hundreds of esthetician treatments, while others only specify a few. And be aware that advanced or intensive treatments like cupping, acupuncture, and cool sculpting may have to be added as endorsements (for a fee).
- Additional Insured: Landlords, spa owners, and staff might want to get in on your insurance plan. Good news: Some esthetician insurance policies allow for an “additional insured” to be added to your policy. Additional insured endorsements usually come with a fee, but you can find a few providers that offer them free of charge.
- Claims Made vs. Occurrence Form: Occurrence form policies protect you from any incidents that occur during your coverage period. Claims-made coverage only protects you if you file a claim during your coverage period. This can lead to many headaches and hefty fees if a client sues you while you’re on a sabbatical or after you’ve stopped practicing.
What Kind Of Insurance Do Estheticians Need?
Estheticians need insurance to protect their business if something happens to their property or clients. Even if you don’t opt for an esthetician insurance bundle, you should have reliable business insurance in your back pocket.
Esthetician Insurance requirements depend on where you live. So, do your due diligence and research your state laws. For example, California requires spa owners who sponsor estheticians in training and estheticians who own a place of business to have coverage. And Texas is the only state that doesn’t require workers’ compensation coverage if you have employees.
How Much Does Esthetician Insurance Cost?
Esthetician insurance premiums start as low as $8 per month, but you might have to pay the full year in advance. An esthetician insurance policy can run anywhere from $90 to $300 per year. In general, higher premiums mean higher coverage limits.
Also, if you buy esthetician insurance from a professional membership association, you have to pay their membership fee. Memberships include other great benefits like product discounts, educational resources, and networking opportunities.
Some insurance providers give discounts to esthetician students. Pro tip: Buy a student rate esthetician policy right before you graduate. That way, you get discounted coverage for your first year as a professional.
What Is The Best Esthetician Insurance You Can Buy?
There’s no shortage of esthetician insurance offerings. You can buy esthetician insurance from most large insurance providers. Or, you can buy a specialized policy from an esthetician membership association, like Associated Skin Care Professionals or Associated Bodywork and Massage Professionals.
At minimum, a good esthetician insurance policy provides high coverage limits, an easy claims process, and lots of flexibility for about $20 per month. Find a policy that meets these criteria, and you’re golden.
Protect Your Esthetician Business
Even the most skilled estheticians can run into business problems. Clients can get hurt, your staff can get sick, or your property may be damaged. In these cases, the costs add up quickly, especially if you’re hit with a lawsuit. Esthetician insurance gives you a layer of protection to run your business with peace of mind.
And PocketSuite gives you a boost!
PocketSuite lets you set up a custom booking page, create professional contracts, receive quick payments, and so much more. We have dozens of specialized features to keep your esthetician business running smoothly.
