Beauty Insurance Mistakes to Avoid When Buying a Policy

KEY TAKEAWAYS: Choosing the right insurance policy for your beauty biz can be intimidating. When you understand the most common insurance mistakes to avoid, you can narrow down your search and select the perfect beauty insurance coverage for your situation.

One of the most important investments you can make as a beauty pro is a comprehensive beauty insurance policy. Not only does beauty insurance offer valuable protection in the face of difficult circumstances, but it also provides you with the confidence and peace of mind you need to bring your best to work every single day.

Equipped with the right beauty insurance, you can rest assured that your reputation, career, financial standing, and more are all in good hands. The question is, how do you choose the perfect policy for your unique needs?

Avoid These Beauty Insurance Mistakes

Mistake #1: Assuming You Don’t Need Insurance

No one likes to think about things going wrong, especially when it comes to their passion and career. The truth is, no matter how careful, experienced, or skilled you are, things can still go wrong in your beauty biz.

From slip-and-fall accidents that happen by pure chance to allergic reactions to products you use every day, you may need beauty insurance when you least expect it.

Assuming that bad things won’t happen to you and your business only sets you up to be unprepared when the unexpected becomes reality.

Mistake #2: Not Understanding the Different Coverage Types

Not all beauty insurance coverages are the same, and assuming they are is among the top insurance mistakes to avoid. Before you commit to a specific policy, you should do some research to understand the different coverage types and determine which are best for your circumstances.

Some key differences to understand are the distinction between professional and general liability insurance, as well as what differentiates occurrence form from claims-made coverage. Both of these aspects of beauty insurance play an integral role in protecting your business and career, making them an essential part of your decision-making process.

A worthwhile beauty insurance plan should include professional liability insurance and general liability insurance because they cover different types of claims. Professional liability insurance, sometimes referred to as malpractice insurance, covers mistakes that are made during the course of a beauty service. General liability insurance, also known as slip-and-fall insurance, applies to accidents that occur on business premises.

Occurrence form policies are generally considered superior to claims-made policies because they cover any incident that occurred during your coverage term, even if the claim is filed after your policy has expired. Claims-made insurance, on the other hand, excludes claims filed after the policy expiration date, regardless of when the event actually occurred.

Mistake #3: Paying More Than You Should for Beauty Insurance

If you are convinced that beauty insurance is important and are determined to invest in the perfect policy for your needs, you’re on the right track. However, it is important not to rush into a policy and end up overpaying for coverage.

One of the most common ways that this situation plays out is that a beauty pro will pay for a certain coverage, only to find out that they have to pay extra for additional services. From identity theft protection to extra fees associated with offering specialty services (like body contouring), these unexpected costs can be sneaky and quite substantial.

Be sure to read through a policy thoroughly before committing to it. Even better, talk to an expert who can guide you through the policy and confirm that it suits your unique needs.

Mistake #4: Missing the Fine Print

All that glitters is not gold. Some beauty insurance policies look tremendous on the surface, but the devil is in the details, and you could end up paying out of pocket for certain things if you overlook the fine print.

For example, you should be absolutely certain that your new insurance coverage applies to every service you currently or ever plan to offer. Additionally, awareness of any exclusions can save you from frustration and unexpected expenses.

Reading the fine print ensures that you are never caught off guard, allowing you to plan ahead for certain situations and choose your policy according to your unique business structure, service offerings, and more.

Mistake #5: Not Adding Your Beauty Biz as an Additional Insured

One of the top insurance mistakes to avoid as a beauty pro is failing to add your own business to your policy.

Claims against you are rarely isolated events. Often, there is a ripple effect where the claim can affect those around you, including the owner of the salon where you rent a booth, and even your own business. 

Adding your beauty business to your policy is different from adding a coworker, employee, or family member (which you should avoid - each individual should have their own coverage). It extends coverage to the business itself, ensuring that any lawsuit brought against you, also protects your business falls under the umbrella of your beauty liability insurance.

Not all insurance companies allow you to have additional insured parties on your policy, so be sure to choose one that does permit this. While you may pay a slight premium for each additionally-insured party, the coverage it grants those individuals and entities is worth it.

Beauty Insurance That Has Your Back

Elite Beauty Society offers liability insurance designed for beauty professionals. That means professional and general liability protection that covers you for 500+ beauty and wellness services across all 50 U.S. States. We provide coverage that keeps you and your career protected against unexpected and costly insurance claims, giving you long-term peace of mind to do your best work every day. 

To learn more about beauty insurance, as well as stay up to date on the latest beauty industry news, be sure to subscribe to Elite Beauty Society and peruse our blog.