A licensed Esthetician has the ability to perform various skin care treatments. The services can include facials, makeup applications, and laser treatments. They are trained to enhance and protect the well-being of their client.
When performing such services, you’ll need to protect yourself and your clients adequately. That’s where insurance comes into play. Insurance allows you to earn an income, defend yourself, and keep a roof over your head, among other things.
Especially if you are working to enhance the well-being of others, either medically or cosmetically, insurance is needed to make sure neither individual is taken advantage of.
Why does an Esthetician need insurance? Insurance should cover general liabilities, professional liabilities, and property liabilities. It is also how you can ensure financial stability.
No one insurance policy fits all everyone’s needs. Insurance policies can vary depending on if you are a student, what type of Esthetician you are, your business, among various other things.
Let’s dive in to see how, and explain why Estheticians need to make sure they have the best insurance policy for their needs.
Do Estheticians Need Insurance?
Insurance is always there to protect your business. Whether it be your equipment or your physical location. Most importantly, insurance will cover you against potential financial repercussions from a lawsuit.
Estheticians are usually working with products that are not always accessible to the general public. These products can consist of lasers, waxes, or chemicals.
If one mistake is made resulting in an adverse reaction or a harmed client, you are putting your business and license at risk.
Student Esthetician Insurance
As a student in an Esthetics school, you are most likely working under your instructor's license. That being said, your instructor is putting their license at risk based on the services that you as a student are performing.
Your school should be the primary source of information on how to get the correct student insurance if this is not the case, as stated above.
However, once you are getting close to graduating, it may be time to look into insurance policies, especially if you will work right after you receive your license.
Elite Beauty Society offers a student insurance plan to cover students in school and up to one year after graduation. Sometimes you can never be too safe.
Esthetician Business Insurance
This type of insurance is the most significant to take into consideration. You can’t guarantee that every single service ever will be executed flawlessly. You also can’t ensure the satisfaction of every client either.
Business insurance is needed to protect yourself from slip-ups that could potentially be a lot worse than what they started with. It can help protect you from financial fallout due to a lawsuit or claim.
Whether a client has an allergic reaction to an unknown product or if they got burned by wax, you and your business are up for the risk.
Esthetician Malpractice Insurance
Malpractice insurance can help cover an Esthetician for negligent behavior or procedures. As stated before, mistakes will happen at some point, or a client will not be satisfied.
This type of insurance is created to protect your actions professionally as a licensed esthetician. It may also be known as a Professional Liability Policy.
What Kind Of Insurance Does An Esthetician Need?
General Liability Coverage
According to Hiscox, “ General Liability protects your business from a claim of bodily or personal injury, associated medical costs, and property damage.”
This will cover everything from injuries resulting in slipping on a wet floor, damaging a client’s property, or even slander. The cost of a general liability plan can vary by state and the type of Esthetician license.
Some insurance companies like Elite Beauty Society are accepted in all 50 states and offer one to two-year plans ranging from $169 - $280 per year. They cover other variables within their policy. However, general liability is included.
Professional Liability Coverage
Hiscox also states that Professional Liability is “coverage for claims against businesses that provide professional and personal services.” It can cover various errors among other areas like:
- Loss of Personal Info
- Claims from Services Provided in the Past
- Negligence
- Other Risks
These are just some of the situations that can get coverage by professional liability or malpractice insurance. Hiscox provides a monthly plan for professional liability for a monthly fee.
However, each insurance is separate, meaning you have to purchase professional liability and general liability plans separately with Hiscox.
This differs from other companies that offer various kinds of coverages rolled up into one plan.
Product Liability Coverage
Product Liability Coverage is significant to have as an Esthetician for numerous reasons. The first being that if a client has a reaction to a particular product or is harmed, the product liability coverage can protect you against the costs of the claim.
Product liability can also provide protection against damaged or stolen equipment, along with rental property damage. It is crucial to make sure your policy plan includes product liability along with professional and general liability.
Rental Property Damage Protection
Sometimes as an Esthetician working in a spa or salon, there may be accidents that end up damaging your place of work. If you are renting a booth, suite, or commercial property, your landlord can hold you accountable for the damages.
It is similar to renting a house, and if you damage the home while living there, your landlord will probably seek payment. Some insurance plans, like Elite Beauty Society, will cover up to $100,000 in rental damage.
Stolen/Damaged Equipment Protection
Sometimes situations like a robbery will be out of the Esthetician’s control, so it’s crucial to have your equipment in your place of work insured. This includes the tool and devices you use on a daily basis to conduct services.
If the equipment gets damaged, there is usually a protection plan for this situation as well. Depending on the insurance provider, you will be able to receive coverage up to a few grand.
Understanding What Services Are Covered By Insurance
Now you may be feeling overwhelmed at all the options in front of you. Especially if you are a new Esthetician, the thought of purchasing an insurance policy can be scary.
Luckily, we will break down some of the most known insurance companies for all kinds of Beauticians and help you find out the best plan for you.
Esthetician Insurance Companies Comparison:
ASCP Esthetician Insurance
Associated Skin Care Professionals Insurance (ASCP) claims that they are an all-inclusive site for insurance, career support, and education.
The ASCP liability insurance plan includes the following:
- Highest Available Limits: This includes $6 million to cover for professional liability, general liability, and product liability.
- No Charge For AIEs (Additional Insured Endorsements): They state if the landlord or owner of your workplace needs to be added to your plan, it will be free of charge.
- No Shared Aggregate: Your package is yours alone, and the coverage amount will not be split up with other members who purchased this insurance plan
- Occurrence Form Coverage
- Coverage Anywhere in all 50 States
Services that can be covered:
- Permanent Makeup
- Laser Services
- IPL
- Coolsculpting
- Radio/High Frequency
- Microblading
This is an example of what services can be covered. However, there are many more that can also be included in this insurance plan. You can expect to pay $259 yearly for this insurance package from ASCP.
Bodywork Esthetician Insurance
Beauty and Bodywork launched their company intending to provide affordable insurance plans for all professions within the beauty industry.
The Professional Liability Plan will cost $96, while the student policy runs for $67. The plan has the ability to cover the following:
- General and Professional Liability Aggregate
- Products and Completed Operations Aggregate
- Personal and Advertising Injury
- Each Occurrence
- Rental Property Damage
While this is an excellent affordable policy, keep in mind that Bodywork surprisingly does not cover a vast amount of services. This can be:
- Laser
- Acupuncture
- Microblading
- Gua Sha
- Cryotherapy
- Aqua therapy and more.
For a complete list of all services excluded from this policy, click here.
NACAMS Esthetician Insurance
The NACAMS or National Association of Complementary and Alternative Medicines serves all health, beauty, and wellness professionals. Their Professional Policy For Estheticians include:
- Product Coverage
- Rental Damage Insurance
- Identity Protection Plan
- Professional and General Liability Insurance
- Stolen Equipment Coverage.
This is a great plan that ensures all your bases are covered when working as an Esthetician. You can opt for a yearly plan for $179 or a two-year package for $297.95. They also cover students for a year at $25.
NACAMS also covers a wide range of services like:
- Facials
- Acne Treatment
- Chemical Peels
- Hair Removal
- Microdermabrasion
- Manicures
- Dermaplaning and more
For a complete list of services that NACAM’s plan will cover, click here.
They are available nationwide. However, it is still recommended to see your state’s requirements for insurance. It can also be found on the NACAM website.
Other Perks of this insurance plan includes:
- Personal Website
- Membership Discounts
- Beauty Magazine Subscription
ABMP Esthetician Insurance
The Associated Bodywork and Massage Professionals is a nationwide membership to make liability insurance accessible. You can pay a flat rate of $229 or $20 a month for a year.
ABMP covers the following in their insurance plan:
- Professional Liability
- General Liability
- Product Liability
- Legal Defense Coverage
- Occurrence Form Coverage
ABMP is an excellent option for bodyworkers or massage therapists. This service plan is just the surface level of what ABMP can provide for you. There may be some exclusions, or there may be more benefits depending on your license and place of work.
Progressive Commercial Esthetician Insurance
Progressive Commercial has a different approach when it comes to insurance plans for Estheticians.
As stated on the website, the cost of their insurance plan is “based on a variety of factors, from business size to coverage needs.” The most basic plan from Progressive Commercial includes:
- General Liability
- Professional Liability
If you are looking for something extra, they also offer:
- Business Owners Policy
- Workers Compensation
To find out a quote for your specific needs from Progressive Commerical, click here
Beauty Insurance Plus Esthetician Insurance
Beauty Insurance Plus has designed a plan specifically for Beauty Professionals. They cover over 350 beauty and wellness services.
The two-year plan is priced at $279, and the one year is at $169. They also offer a program for students for $25 for the first year.
What’s included in the plan:
- Professional and General Liability
- Product Liability
- Rental Damage Insurance
- Identity Protection
- Stolen Equipment Insurance
- Occurrence Form Coverage
Additional Perks Include:
- Access To Customer Service
- All-inclusive mobile coverage
- Free Professional Website
- Access To Beauty Insurance Plus’s Insurance Marketplace
Beauty Insurance Plus is an excellent option for any beauty professional. Primarily since they only specialize in covering beauty services.
Elite Beauty Society Esthetician Insurance
Elite Beauty Society is also a great insurance company for Estheticians since they also specialize in insurance for beauty professionals.
They also offer the standard pricing plans of $169 for one year of insurance and $279 for two years. The package includes:
- $2 million in Professional and General Liability Coverage
- $2 million in Product Liability
- $3 Million Individual Annual Aggregate
- $100,000 Rental Property Damage
- $25,000 Identity Theft Protection
- $1,000 Stolen/Damaged Equipment Protection
Elite Beauty Society, like most other insurance companies listed above, also offers its plans nationwide. They can cover the following services:
- Chemical Treatments
- Body Wraps
- Esthetics Services
- Waxing
- Makeup Application
- Microblading
These are only a tiny portion of what Elite Beauty Society Covers. They also state that there are no membership fees required to become insured.
Hiscox Esthetician Insurance
Hiscox is an insurance provider for various professions. However, they do cover Estheticians. Hiscox does provide a wide range of aspects within an insurance plan. However, this is what they can offer for Estheticians:
- Professional Liability
- General Liability
Perks to choosing Hiscox:
- Flexible Payment Options
- Tailored Insurance
- Coverage for Contracts
- Worldwide Coverage
- Claims Responsiveness
If you're wondering how you can tailor your insurance perfectly for your and your business, you can easily get a quote from Hiscox.
Keep in mind this insurance company specializes in all industries, so you may not receive a lot of coverage as an Esthetician.
Hands On Trade Esthetician Insurance
Hands On Trade helps all professions that deal with beauty, bodywork, cosmetology, massage, and more. They can offer Estheticians the following insurance plan:
- Professional Liability/Malpractice Insurance
- General Liability
Insurance Coverage includes:
- Product Liability up to $2 million
- Premises Insurance covering damages up to $100,000 a year
- Only For US Residents
- No Deductible
Insurance Coverage Exclusions but not limited to:
- Permanent Makeup
- Invasive Procedures
- Medical Esthetician Procedures
- Cryo Chambers
- Sexual Abuse
- Human Structural Manipulations
Beauty Services that are covered are:
- Chemical Peels
- Dermaplaning
- Eyebrow Threading
- Lash Lifts
- Radio Frequency
- Waxing
- Hydrafacials
- Laser Hair Removal
The price for this plan from Hands On Trade is $154 per year. It will cover you no matter where you travel to work.
Next Insurance Esthetician Insurance
Next Insurance has different levels of insurance that are available for Estheticians. The plans start at $17 a month; however, that can increase depending on how you would like to tailor the insurance plan to match your business.
Basic: General and Professional Liability ($500,000 limit, $500,000 aggregate, and $0 deductible)
Pro: General and Professional Liability ($1,000,000 limit, $1,000,000 aggregate, and $0 deductible)
Pro Plus: General and Professional Liability ($1,000,000 limit, $2,000,000 aggregate, and $0 deductible)
Next Insurance works to ensure that insurance is simple, affordable, and tailored. They also allow you to add an Additional Insured. If you can't make the yearly rate, don’t fuss, there is a monthly payment plan available.
They are also partners with large companies like American Express, Nationwide, and Munich Re. Click here to receive a quote from Next Insurance.
Overview
Regardless of your situation, whether you are a professional or a student, you should not go without insurance as an Esthetician.
Because Estheticians provide cosmetic services that sometimes involve chemicals and lasers, you and your business must be protected.
Estheticians work closely with other individuals, and the environment, tools/devices, and experience should all be covered.
You don’t ever want to put you, your business, or the wellbeing of your client at risk while providing a service. Without the correct insurance you will be liable financially for any claim or lawsuit. You could also be at risk of losing your license altogether.
What to Look For In An Insurance Plan:
It is a great rule of thumb to look for the following aspects in an insurance plan. Always remember to ask for a quote and see how you can tailor your insurance plan for your business.
General Liability:
You will want to be covered for any slips and falls. This includes any other bodily or personal injuries, slander, or associated medical costs.
Professional Liability/Malpractice Insurance:
This can cover various claims due to inappropriate behavior, along with the following:
- Loss of Personal Information
- Claims from Services Provided in the Past
- Negligence
Product Liability:
This should cover various things that have to do with the product. Whether it be a client has an allergic reaction to a product or the product has been damaged, Product Liability should cover these aspects.
Rental Property Damage Protection:
If the place of work is damaged by your practices or for other reasons, this rental property protection will keep you covered from any unexpected accidents.
Stolen/Damaged Equipment:
You can never be too prepared. On average insurance companies will provide up to $1,000 for stolen or damaged equipment. You can’t predict the event of a robbery to happen, but if it does, hopefully, your insurance will keep you covered.
You also never know when a machine or device will break down. In any event, it’s always good to keep your equipment insured. Especially if you use these tools daily to make a living.
These are great things to look for within an insurance plan. The best places to look at policies are the following:
- ASCP
- Bodywork
- ACAMS
- ABMP
- Progressive Commercial
- Beauty Insurance Plus
- Elite Beauty Society
- Hiscox
- Hands on Trade
- Next Insurance
Of course, these are not the only insurance companies available; however, most of these companies listed solely specialize in beauty insurance.
This is a great option because these kinds of insurance companies will solely focus on what it’s like to work as a beauty professional.
Choosing a plan with a beauty-based insurance company will be fantastic, and they will provide more services for beauty professionals. You will receive additional perks like discounts or websites.
The best part is you are working with an insurance company that understands the needs of an Esthetician. Other insurance companies that are not beauty-based still have plans for Estheticians.
However, these plans from these widespread insurance companies that will usually only offer the basics needed. That may work for some people; however, other Estheticians may need a little extra benefit.
Even if you are a student, don’t overlook the power of purchasing an insurance plan. They are affordable, and you don’t want to put your instructor at risk either.
Student plans are significant while in school or if you are just about to graduate. Having insurance after the first year in the workforce will help give you an extra cushion. Check with your school and state to see if a student insurance plan is right for you.
Choosing the right insurance is no picnic in the park, but hopefully, you feel more secure now that you know more about your options. You can always get a quote and see what plan can be adjusted for you and still stay on budget.
You will feel relieved and ready to work once you pick the right plan. Let your insurance company do all the worrying for you. It’s better to be safe than sorry. If anything unexpected does happen, you know you will be covered.
Now, you can focus on always providing the best skin care services to your clients.
