Cosmetology Insurance FAQs

We have more insurance FAQs here.

Policies Available for Beauty Insurance:

• General liability insurance
• Professional liability insurance
• Workers Compensation

Benefits:

• Your business and personal assets will be protected.
• Beauty insurance can cover damage caused by your negligence.
• Often proof of insurance is required by wedding venues, salons, and other spaces.

What Insurance Do I Need for My Beauty Business?

It really depends on the size and type of business you own, and where you work. Simply Business offers a few different plan options—and one is sure to meet your needs. The types of beauty insurance policies we recommend are general liability insurance and professional liability insurance:

What is the purpose of cosmetology liability insurance?

Honest mistakes happen all the time, but they can turn ugly for cosmetologists. Cosmetology liability insurance protects you and your business. If a customer claims you did something wrong, liability insurance kicks in to help cover the cost of medical bills, damages, and legal fees.

Let’s face it, you never know when a chemical peel may go wrong. Like the SPF in your moisturizer, insurance coverage prevents you from getting burned.

Commercial General Liability Insurance

Whether you’re a make-up artist or perform nail care, you’ll want insurance to cover third-party accidents, damages to property, and bodily injury to a third-party. Commercial general liability (GL) insurance protects you from costs associated with these risks on a day-to-day basis. It also protects some of your beauty equipment and products if they get stolen or damaged on the job.

Without general liability coverage, you’ll have to pay for these costs. And it can add up. The average cost of a property damage or accident claim is $30,000, so it’s worth protecting yourself with insurance.

Think damage won’t happen? It’s more common than you think. Just imagine you’re at a client’s home and accidentally drop hair dye on a brand-new sofa. It’s an honest mistake, but it could cost you thousands of dollars, depending on the value of the furniture. Your customer could easily file a claim against you saying they have to purchase a new sofa.

Fortunately, if you carry GL insurance, your plan will protect you financially. It will cover the cost of purchasing a new sofa and the cost of a lawyer up to your limit.

Wondering what else general liability insurance can cover? Take a quick look:

• Bodily injury to someone else
• Damage to third-party property
• Personal and advertising injury
• Medical costs
• And more

Here’s what general liability insurance typically doesn’t cover:

• Damage that happens to your property
• Professional services
• Workers compensation or employees’ injuries
• Known or likely to occur claims
• And more

Professional Liability Insurance

Licensed cosmetologists, like you, often work with hazardous chemicals, and sharp tools and equipment. It’s just part of the job. You’re probably familiar with how to protect yourself from an allergic reaction or injury, but what if something happens to a customer? Just think how a lawsuit could hurt you financially and professionally.

Fortunately, a professional liability insurance plan will cover you, your business, and your employees if you were negligent while providing services. This is pretty important, especially because we know mistakes can happen. Let’s take a look at an example.

Imagine you’re offering a facial to one of your customers. You apply a moisturizer cream, and it creates a severe allergic reaction, causing your customer to rush to the emergency room. Later, your customer sues you for medical costs and emotional distress.

If you have professional liability insurance, you should be covered. You won’t have to worry about paying for legal costs and medical bills, up to the limit of your policy. Plus, your plan can protect your personal assets, like your home and other property. We highly recommend cosmetologists get professional liability insurance because of the risks in their line of work. In fact, most salons, wedding venues, and other spaces may require you to carry proof of insurance before doing work.

Here’s an overview of what professional liability insurance can cover:

• The cost of hiring a lawyer
• Omissions or alleged omissions
• Claims and damages
• And more

Professional liability insurance usually doesn’t cover:

• Intentional negligence
• Bodily injury
• Property damage
• False advertising
• Patents and trade secrets
• And more

Workers Compensation Insurance

If you have employees, then you may need workers compensation insurance. In fact, you may want to get a plan as soon as you hire your first employee, even if it’s a part-time hire. In many states, this is a legal requirement.

Financially, it makes sense. In 2017, work injury costs added up to a whopping $161.5 billion. And for small business owners, the average cost of one injury claim is $41,000. That’s a big chunk of change!

Getting a workers compensation plan early can only benefit you and your business. It’s designed to protect you and your employees if there’s an accident or injury on the job. It can help pay for emergency room visits, medicines, healthcare bills, and more. It can even cover part of an employee’s lost wages.

Generally speaking, workers compensation pays for:

• Healthcare costs
• Lost wages during a worker’s time off
• Rehabilitation expenses
• Death benefits

It usually doesn’t cover:

• Client or vendor accidents
• OSHA fines
• Work safety improvements
• Wages for a worker who replaces the injured employee

Why Should I Get Insurance for My Cosmetology Business?

Not sold yet? Getting business insurance can feel like a big—and costly—step.

But here’s the truth: Beauty insurance is well worth it. The amount you may pay for a policy is small compared to what you could pay if you get sued by an unhappy customer, even if it wasn’t your fault. Plus, if you don’t have a policy, you might have trouble getting work with reputable salons and wedding venues. Insurance can demonstrate you’re trustworthy and have taken time to care for your business.

The good news is business insurance premiums are very reasonable right now, at about X per month. Try comparing that to the average cost of claims:

• $30,000 for property damage or accidents
• $39,000 for injuries on the job
• $50,000 for reputational harm (think: slander or libel)
• $20,000 if a customer slips and falls

Unfortunately, it’s common for beauticians to experience lawsuits too. In fact, 43% of small business owners say they’ve had to deal with a lawsuit or the threat of one. And it doesn’t matter if you did anything wrong or not. Clients can sue you if they were unhappy with their services, and you’ll have to hire a lawyer to defend yourself.

Sound expensive? Yes!

Another reason to carry insurance is that it can help your business grow. It’s a professional milestone that makes you stand out in your industry. With proof of insurance, you can:

• Start renting salon space
• Work with bridal parties at wedding venues
• Hire other cosmetologists to work with you
• Gain the confidence of new customers
• Open your own location
• And more!

At Simply Business, we’ll always provide you with a certificate of insurance (COI) when you buy one of our plans. That’s what you need to provide proof of coverage.

Why Choose Simply Business?

It’s simple. We’re one of the fastest-growing online insurance brokers in the market today. We also make it incredibly easy to compare cosmetology insurance policies and get free insurance quotes fast. In fact, thousands of small business owners trust us every day to protect their businesses.

Here’s why cosmetologists across the nation choose Simply Business:

We make coverage simple and affordable. It’s our goal to make insurance coverage easy—so you can get back to serving customers. It’s fast to compare quotes, and our team is readily available to answer questions.

We go above and beyond. You can always talk to one of our licensed insurance agents to find a plan that meets the unique needs of your business. We’re here for you.

We understand your industry. We’re not your typical insurance company. We take time to get to know our customers, including cosmetologists. As a result, we’re able to offer insurance that truly meets their needs.

You’ve spent time growing your business, so you deserve solid protection. Take a look at the cosmetology insurance plans we offer and secure an affordable plan today.

This content is intended to be used for informational purposes only. It is not intended to provide legal, tax, accounting, investment, or any other form of professional advice.