Does Your Studio Need Esthetician Insurance?

Starting a new business is a challenging and rewarding process. Most of us discover things we didn’t consider during the planning stages. Estheticians leaving a salon where they’ve worked for someone else must view things from a business owner's perspective. 

Chances are, you’ve thought about location, decor, and what you’ll need to start your new venture. But something we don’t always think about is esthetician insurance. 

You believe in your abilities to provide high-quality professional services. However, you can’t predict everything, including floods, fires, or unhappy customers.

Insurance is a vital step in your business plan to protect yourself and your business. We’re taking the mystery out of esthetician insurance for you.

What is esthetician insurance?

There are lots of different types of business insurance. Examples include liability, commercial property, workers’ compensation, and business income insurance. Esthetician insurance encompasses several essential areas of your business.

What services does the insurance typically cover?

A popular approach to going it alone as an esthetician is a salon suite. In this case, you’re not responsible for the building, but your equipment is important to protect. 

Commercial property insurance and a business owners’ policy protect your space, equipment, tools, and inventory. Commercial property insurance is a must-have if you’re in your own space. So many tools in a salon use electricity, and fires aren’t out of the question. 

Skin care is as individual as your skill set. Each customer comes in with their own needs, and sometimes something you recommend doesn’t work out. Product liability coverage protects you if a customer buys a cream that makes them break out. 

General liability doesn’t always cover these types of issues, but it’s also essential. Customers may have an accident or react badly to a treatment. They may choose to sue your business, and general liability covers that type of litigation.

Esthetician insurance combines all of these various coverages into a single policy. You’ll likely have choices between professional liability and general liability, which cover a range of issues. A good insurance agent should talk you through the information and help you make the best choice.

How much does esthetician insurance cost?

The overall cost of esthetician insurance depends on several factors. Location matters due to property values and the cost of doing business. Sole proprietors need different coverage than a salon with several employees. And who you use for coverage changes the price as well. 

In general, you’re purchasing professional liability and general liability for your shop. You can expect to pay anywhere from $8 to $21 monthly for coverage. Adding other coverage types will increase your premium, but it won’t break the bank. 

Why should you consider getting insurance for your beauty business?

Because you’re pouring your life, energy, and resources into your business, you must protect it. Service-based professions deal with all sorts of unforeseen issues, and insurance helps. When something goes wrong, it doesn’t have to be the end of your dream. 

Situations where insurance could help you

As we noted earlier, coverage isn’t just about the physical space. You work on clients' faces and intimate areas daily, and things go wrong. 

If a treatment injures a customer, say Brazilian waxing, professional liability insurance can help! Out-of-court settlements, legal fees, and judgments can easily break your business. How much coverage is up to you, but you can insure from $1 million to $6 million, depending on your policy. 

General liability protects you if a client is injured and needs medical care. In the event of an allergic reaction, professional liability won’t cover you. General liability for estheticians usually also covers damage to a rented space and slander, libel, or copyright issues.

Selling products is part of most estheticians’ business models. Product liability insurance covers you if something a client purchases from you causes problems.

If you’re at the point in your new business where you’ve got other technicians working for you, you’ll need more coverage. Talk to your insurance provider about workers’ compensation, inland marine, and commercial property insurance. They’ll steer you in the right direction!

What should you look for in an insurance provider?

Choosing your provider can mean the difference between timely responses to claims and never hearing from them again. Do your research in choosing the right provider, and there are plenty of reviews. 

Your best bet is to work with a company that already insures estheticians. They’ll have policy bundles that meet your needs and don’t leave expensive gaps in coverage. Make sure to ask about policy limits when looking for a provider. These limits are where the coverage stops, and you’re responsible.

Look at the company’s Better Business Bureau ranking and AM Best rating. These tools ensure that you’re working with a company that can fulfill its obligations. 

Other common questions about esthetician insurance

Choosing the right coverage is the first step to insuring your business. Even with the best information, it’s common to have other questions about your coverage. 

Does esthetician insurance cover you in every state?

You want to know if your coverage moves with you if you're moving states. Each state has licensing requirements, and you’ll want to verify that first. Some policies will only cover you in one state; others offer coverage wherever you go! If you know you’re planning a move, or even if you don’t, check into that option with your policy.

Will esthetician insurance cover supplies and products?

Certain types of coverage include supplies and costs. Commercial property insurance protects your valuables and goods within your space. Whether you rent or own your property, this option protects against a slew of unforeseen events. You'll need separate coverage if you’re in an area that floods or has frequent earthquakes. 

When should you get esthetician insurance?

As a practicing esthetician, you should have insurance already. You're the exception if you don’t and have been lucky enough not to need it. It’s not too late, though. You can find a policy and have instant coverage from the right company!

Protecting your investment in yourself and your business should be your first priority. Take the time to find the right esthetician insurance today. Your future self will thank you!

Bosses in Beauty provides guidance for seasoned estheticians and new alike

At Bosses in Beauty, we know the pitfalls of building a new business. We’ve done the hard work for you and want you to learn from our experience. Whether you’re brand new to the profession or looking to up your game, we have something for you. We offer several business-building blueprints and coaching for all beauty businesses!

Bosses In Beauty is here to provide the best education and information to current and future estheticians around the globe!