Beauty Insurance: Everything You Need To Know In 2019



Whether you are renting a booth at a salon, work in you own beauty space, or as a freelance beauty professional, purchasing a beauty 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 an artist.

A little insurance knowledge can empower you as a professional 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 a beauty insurance policy in 2018.


What Is Professional Liability Insurance?

Professional Liability Insurance is a form of risk management in which the insured cosmetologist can be protected and relieved of the financial responsibility of a potential loss.

What does that mean?

It is designed to protect beauty professionals from claims arising outside of their direct professional skills.


Why Do Cosmetologists Need Beauty Insurance?

In any industry, accidents are inevitable and unpredictable.

The average claim in the beauty industry is $5,500! Without insurance, this cost would come 100% out of your own pocket.

By carrying professional 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. We live in a litigious society.

You are a 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.

Or call 1(844) 921-4452 to speak to a live insurance representative.


What are the types of liability insurance?

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:

  • A skin client slips on oils used during a facial service with you as the esthetician.
  • A hair  client trips on un-swept hair during her hair color service with you as the hairstylist.
  • A nail client falls after getting up from your pedicure chair in her pedi-shoes with you as the nail technician.

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 receives a cuticle infection from a nail treatment.

Other Scenarios Of Professional Liability Claims:

  • A skin client develops an allergic reaction due to the moisturizer you used during her facial. 
  • A nail client experiences an injury from the drill you are using during her acrylic service.
  • A hair client suffers from a slipped disk injury that resulted from her shampoo service.

What is the difference between occurrence form and claims made coverage?

This is an important part of selecting beauty 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 the policy is active.

The video below gives a brief explanation between the two. Click the play button located in the middle of the video.

How Much Should I Be Paying For Cosmetology Insurance?

Professional Cosmetology 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!


Do You Offer A Policy For My Entire Salon, Spa, or Business?

YES!

Elite Beauty Society has partnered with insurance industry leader, Allstate Business Insuracne, for any members looking for a Business Owner Policy (BOP). 

BOP is a package policy designed to guard against risks associated with small businesses. It combines property insurance, liability coverage, and more, into one convenient policy.

Yes!

Elite Beauty Society has partnered with insurance industry leader, Allstate Business Insuracne, for any members looking for a Business Owner Policy (BOP).

BOP is a package policy designed to guard against risks associated with small businesses. It combines property insurance, liability coverage, and more, into one convenient policy.


How Elite Beauty Insurance Compares

Associated Hair Professionals / Associated Skincare Professionals

AHP / ASCP / ANP

elite beauty insurance logo

Professional & General Liability Coverage

$2 Million Per Occurrence
$6 Million Individual Annual Aggregate

$2 Million Per Occurrence
$3 Million Individual Annual Aggregate

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

$199/year

$159/year Professional

$25 first year Student

Health & Beauty Association

Health & Beauty Association (NAMT/ former IMA)

elite beauty insurance logo

Professional & General Liability Coverage

$1 Million Per Occurrence
$3 Million individual aggregate

$2 Million Per Occurrence
$3 Million Individual Annual Aggregate

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

elite beauty insurance logo

Professional & General Liability Coverage

$2 Million Per Occurrence
$3 Million Individual Annual Aggregate

$2 Million Per Occurrence
$3 Million Individual Annual Aggregate

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

NEXT​ Insurance

Next INSURANCE

elite beauty insurance logo

Professional & General Liability Coverage

$1 Million Per Occurrence
$2 Million Individual Annual Aggregate

$2 Million Per Occurrence
$3 Million Individual Annual Aggregate

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

N/A

$100,000

Stolen Equipment

No 

$1,000 *$250 deductible

Identity Protection Plan

No

$25,000

Annual Fee

$200/year


$159/year Professional

$25 first year Student

Beauty and Bodywork Insurance (Insure Bodywork)

beauty and bodywork

(Insure bodywork)

elite beauty insurance

Professional & General Liability Coverage

$2 Million Per Occurrence
$3 Million Individual Annual Aggregate

$2 Million Per Occurrence
$3 Million Individual Annual Aggregate

Occurrence Form Coverage

No—Claims made

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

Professional & General Liability Coverage

$2 Million Per Occurrence
$3 Million Individual Annual Aggregate

$2 Million Per Occurrence
$3 Million Individual Annual Aggregate

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

NOTE: The information in this comparison has been gathered from the websites of each organization and other third party sources. No guarantee or assurance is made by Elite Beauty Society as to the accuracy or completeness of this information. Date that we confirmed this information 2/14/18.

Or call 1(844) 921-4452 to speak to a live insurance representative.