What is beauty insurance?
There are a variety of services found within the beauty industry, and there are many factors to consider when insuring your business. For example, a mobile hairdresser would need very different coverage from a hair salon owner. Insurance plans provide coverage for liabilities, equipment, and inventory. It also covers beauty professionals in the event of damages or theft that occur during a beauty professional’s workday.
Who needs beauty insurance?
Any professional or business providing beauty services. This includes:
- Cosmetology
- Beauty schools
- Tattoo artist
- Spas and salons
- Barbers
- Estheticians
- Nail Technicians
- Eyebrow / Eye Lash Technicians
- Hair Stylists
- Laser Hair Removal Technicians
- Makeup artist
- Spray Tanning Business
- Teeth whitening hygienist
- Waxing / Sugaring Specialists
In addition, most establishments and professionals may be required to purchase beauty insurance by state or local laws.
What insurance do beauty professionals need?
The insurance policy you purchase should be based on the needs of your business. It is important to know what services, products, or equipment you plan to use during a client’s beauty procedure. Having this information will allow you to select an insurance option that covers damages caused by these items in the event of an accident or theft.
General liability insurance
General liability insurance protects you against the day-to-day risks that could happen while running your business. It covers injuries, property damage, medical fees, and legal expenses. Having this kind of insurance is a good idea for all beauty professionals and businesses.
Commercial property insurance
This policy protects your business location and the property inside the building from risks that are beyond your control, such as a fire or theft. It also provides business interruption coverage, which provides reimbursement for income lost following an insured event. If you need this kind of insurance, carefully review your policy to make sure its coverage meets your potential needs. Speak to your insurance agency if you have any questions or want to add specific coverage to your policy.
Professional liability insurance
This insurance policy, referred to as errors and omissions, protects you against claims for damages caused during a beauty procedure. For example, an injury due to the use of faulty instruments, equipment burns from waxing clients, cuts from razors used for hair removal services, or hair loss.
Product Liability Insurance
Product liability coverage protects against claims that a product used during a treatment, or sold to a client caused injury or property damage. Usually, the damages covered by product liability are from design, manufacturing, or marketing defect, such as an incorrect label or a lack of safety warnings.
Workers compensation insurance
This insurance provides protection to beauty professionals for lost wages, medical expenses, and rehabilitation costs in the event of a workplace injury. State or local laws require some beauty professions to purchase this type of beauty insurance coverage. This includes beauty schools, spas, and salons that have employees on staff.
What are the limits of beauty insurance?
Beauty insurance has a variety of limits, ranging from $1,000,000 to $2,000,000 for each occurrence or in aggregate. Most insurance covers over a million dollars, which is a good start. However, beauty professionals may need more coverage depending on what their business entails and where they are located geographically.
How much does beauty insurance cost?
Business insurance can be affordable, with some plans costing as little as $39 per month or $96 per year in certain states. Also, keep in mind that the more the insurance covers, the more costly it will be on average, but it can range from $400 to $2,000 per year for general liability coverage.
There are aspects specific to you that will also determine your monthly or yearly premium cost. Insurance companies will charge more for a beauty professional or business that they deem to be higher risk. The following factors are some of the determining factors or your premium cost:
- Location: Insurance providers may want to know where you are conducting your business. The safer and more legit your place of business is, the better.
- Assets: What assets do you or your business own? What needs to be protected under this policy?
- Employees: If you have employees working under you, it is important to get insurance that covers any risk associated with them. Insurance providers will need to know this information.
- Claim history: If you have a history of insurance claims within your business, the insurance provider will likely see you as higher risk and raise your premium.
- Coverage: What do you need covered? Insurance companies can help you to delineate what protection you need in your business. It can be helpful to go into it with a good idea of what you need. Your coverage needs will obviously impact your insurance cost.
How to choose the best beauty insurance?
There are many business insurance providers out there. Here is what to consider when before purchasing a policy:
- Know your state’s business insurance laws: Before buying an insurance policy, you must understand your state’s requirements. Some policies might not pay you out if you have violated any laws related to beauty and cosemtic procedures.
- Compare multiple providers: Its imporant to look at quotes from different companies to find an affordable policy that meets your needs.
- Know the beauty products you use: The specific insurance policy will depend on the type of beauty products you use when providing services. For example, some insurers might not cover permanent hair dye if it is used by someone other than a licensed hairdresser.