Esthetician Insurance: Everything You Need to Know in 2018
Whether you are renting a space at a salon/spa, work in you own beauty spa, or as a freelance beauty professional, purchasing an esthetician insurance policy supports and protects your career wherever you go.
Liability Insurance provides peace of mind and assurance no matter where your career takes you as a skin care professional.
A little insurance knowledge about aesthetics can empower you to make the right decision when it comes to researching and purchasing a professional and general liability insurance policy.
Below is a complete breakdown of everything you need to know before purchasing an esthetician insurance policy in 2018.
What Is Professional Liability Insurance?
Professional Liability Insurance is a form of risk management in which the insured esthetician can be protected and relieved of the financial responsibility of a potential loss.
What does that mean?
It is designed to protect beauty/spa professionals from claims arising outside of their direct professional skills.
Why Do Estheticians Need Insurance?
In any industry, accidents are inevitable and unpredictable.
The average claim in the spa industry is $5,500! Without insurance, this cost would come 100% out of your own pocket.
By carrying esthetician liability insurance, you can transfer the risk of monetary loss to your insurance provider. You no longer have to carry the emotional stress of figuring out how you’re going to pay a claim or defend yourself during the investigation period.
It only takes a single lawsuit or claim to bankrupt you.
You are a skin care professional with specialized training and certification. Though you may not be ultimately responsible for an injury or damages, your role makes you a target.
Even baseless claims require you to defend yourself. Legal defense can be costly.
What Are The Types Of Liability Insurance For Estheticians?
GENERAL LIABILITY INSURANCE: Protects against claims of bodily injury and property damage.
Scenario: A client slips on water as she gets up from the waxing chair. Whether she says something at the time of the incident or not, a week later she files a claim for a slip-and-fall injury.
Other Scenarios Of General Liability Claims:
PROFESSIONAL LIABILITY INSURANCE: Covers claims filed by clients claiming to suffer injury caused by negligence of the professional.
Scenario: A week after an appointment, a client develops an allergic reaction due to the moisturizer you used during her facial.
Other Scenarios Of Professional Liability Claims:
Occurrence Form and Claims Made Coverage: What's the Difference?
This is an important part of selecting esthetician insurance of which many professionals overlook before purchasing.
It is not always clear which option to choose when selecting insurance, and some companies hide their policy details. We're here to clear the confusion when it comes to occurrence form vs. claims-made policies.
OCCURRENCE FORM: Coverage includes any claim filed even after your policy expires, as long as the incident in question took place while your policy was active.
CLAIMS-MADE: Coverage does not include claims filed after your policy is expired. Only covers policyholders for claims filed while while the policy is active.
How Much Should I Be Paying For Esthetician Insurance?
Skincare Professional Insurance will vary on the master policy and benefits. The price can range from $95-$249 based on factors such as—claims made vs. occurrence form policy, coverage for equipment and additional member fees.
*Pro Tip: Always ask your insurance provider if you will be covered for claims filed after your policy has expired.
Clients can file a claim up to two years after the incident*
How Estheticians Alliance Insurance Plus Compares
Associated Skin Care Professionals
ASSOCIATED SKINCARE PROFESSIONALS | ESTHETICIANS ALLIANCE INSURANCE PLUS | |||
|---|---|---|---|---|
Professional & General Liability Coverage | $2 Million Per Occurrence | $2 Million Per Occurrence | ||
Occurrence Form Coverage | Yes | Yes | ||
Product Liability | $2 Million/occurrence | $2 Million/occurrence | ||
Hour Qualification | No Hours Required | No Hours Required | ||
Required CE Hours | No | No | ||
Rental Damage Coverage | 100,000 (Fire/Water Legal Liability) General Liability Limits May Apply | $100,000 | ||
Stolen Equipment | Optional—Add $95 | $1,000 *$250 deductible | ||
Identity Protection Plan | No | $25,000 | ||
Annual Fee | $249/year | $159/year Professional $25 first year Student |
Health & Beauty Association
HEALTH & BEAUTY ASSOCIATION (NAMT/FORMER IMA) | ESTHETICIANS ALLIANCE INSURANCE PLUS | |||
|---|---|---|---|---|
Professional & General Liability Coverage | 1 Million Per Occurrence | $2 Million Per Occurrence | ||
Occurrence Form Coverage | Yes | Yes | ||
Product Liability | $1 Million/occurrence | $2 Million/occurrence | ||
Hour Qualification | No Hours Required | No Hours Required | ||
Required CE Hours | No | No | ||
Rental Damage Coverage | 300,000 (Fire/Water Legal Liability) General Liability Limits May Apply | $100,000 | ||
Stolen Equipment | No | $1,000 *$250 deductible | ||
Identity Protection Plan | No | $25,000 | ||
Annual Fee | $199/year $99.95 first year student | $159/year Professional $25 first year Student |
Hands On Trade Association
HANDS ON TRADE ASSOCIATION | ESTHETICIANS ALLIANCE INSURANCE PLUS | |||
|---|---|---|---|---|
Professional & General Liability Coverage | $2 Million Per Occurrence | $2 Million Per Occurrence | ||
Occurrence Form Coverage | Yes | Yes | ||
Product Liability | $2 Million/occurrence | $2 Million/occurrence | ||
Hour Qualification | No Hours Required | No Hours Required | ||
Required CE Hours | No | No | ||
Rental Damage Coverage | $100,000 | $100,000 | ||
Stolen Equipment | No | $1,000 *$250 deductible | ||
Identity Protection Plan | No | $25,000 | ||
Annual Fee | $145/year | $159/year Professional $25 first year Student |
Beauty and Bodywork Insurance (Insure Bodywork)
BEAUTY AND BODYWORK (INSURE BODYWORK) | ESTHETICIANS ALLIANCE INSURANCE PLUS | |||
|---|---|---|---|---|
Professional & General Liability Coverage | $2 Million Per Occurrence | $2 Million Per Occurrence | ||
Occurrence Form Coverage | No | Yes | ||
Product Liability | $3 Million/occurrence | $2 Million/occurrence | ||
Hour Qualification | No Hours Required | No Hours Required | ||
Required CE Hours | No | No | ||
Rental Damage Coverage | $300,000 | $100,000 | ||
Stolen Equipment | No | $1,000 *$250 deductible | ||
Identity Protection Plan | No | $25,000 | ||
Annual Fee | $96/year | $159/year Professional $25 first year Student |
Alternative Balance
ALTERNATIVE BALANCE | ESTHETICIANS ALLIANCE INSURANCE PLUS | |||
|---|---|---|---|---|
Professional & General Liability Coverage | $2 Million Per Occurrence | $2 Million Per Occurrence | ||
Occurrence Form Coverage | No Claims Made | Yes | ||
Product Liability | $2 Million/occurrence | $2 Million/occurrence | ||
Hour Qualification | No Hours Required | No Hours Required | ||
Required CE Hours | No | No | ||
Rental Damage Coverage | $300,000 | $100,000 | ||
Stolen Equipment | No | $1,000 *$250 deductible | ||
Identity Protection Plan | No | $25,000 | ||
Annual Fee | $249/year $189 first year Student | $159/year Professional $25 first year Student |