Smiling to herself, a cosmetologist thinks about her occurrence form coverage.

No Matter the Occurrence, Occurrence Form Coverage Has Your Back
What to Know About Occurrence Form Cosmetology Liability Coverage

When it comes to cosmetology liability insurance, the endless options out there can make your head spin.

Not only are there, like, a million different companies you could choose to work with for your liability insurance–there are also so many different insurance-esque words to decode before you can figure out what you need in the first place.

The insurance world is no joke. It can be tricky, confusing, and definitely overwhelming.

The good news? It can also be super seamless and really simple to choose the coverage that makes the most sense–you just have to find a company that can break it all down for you first. 

In this blog, we're talkin' about one of the big, scary insurance words that's actually not so big and scary after all. Cosmetologists and beauty pros, meet the world of occurrence form coverage

If you're ready to dive in headfirst and learn all there is to know about this kind of insurance (and why it's the best option out there), you're 100% in the right place! 

What is Occurrence Form Coverage, Anyway? 

It's likely that if you've even scratched the surface of looking for insurance, you've heard enough insurance industry jargon to make your head dizzy. For now, let's cut out all the extra noise and get to one of the must-know points of insurance–the type of coverage.

Occurrence form coverage is, you guessed it, a type of coverage you can invest in. There are several types out there, but two of the major ones are occurrence form and claims made. Here's what you need to know about the basics of occurrence form coverage to get your foundation down. 

Occurrence form coverage is a type of insurance policy that provides you with a lifetime coverage period for incidents or claims that happened during the time your policy was active.

That means it doesn't matter when you file a claim or when someone makes an accusation; if the incident in question occurred during the time you had occurrence form coverage, you're good to go–even if you no longer have that same coverage. 

A beauty pro works on a client's hair while they discuss occurrence form liability coverage.

Let's go through a quick hypothetical scenario for a minute to give you the full picture of how this goes down.

Let's say you had an occurrence form coverage policy for the entire year of 2020. When 2021 came around, you swapped to a different insurance plan.

But suddenly, in the middle of 2021, someone makes a claim that you're responsible for an incident that happened at the beginning of 2020 (nearly a year and a half later). Your current coverage doesn't offer you any support on that claim–but your old occurrence form coverage will, even though they're not in charge of your policy anymore. 

Why Occurrence Form Coverage is the Right Fit for Cosmetologists 

Occurrence Form Policies Make More Sense 

Maybe we're biased (because EBS only offers occurrence form coverage), but we think that this type of policy is way more straightforward. There are no loopholes, no tricky time issues, and certainly no issues of protection if you were covered at the time of the incident. 

Your Back is Always Covered 

With this kind of policy, you never need to be worried if you're going to be covered should something come up two, five, or even 10 years down the line. If you were covered during the time of the incident, you'll be covered when the claim is made. 

It's the Preferred Type for the Beauty Industry

OF coverage is actually the usual go-to for the beauty or cosmetology industry. There are tons of insurance companies out there who offer other kinds of policies, but occurrence form is–and probably always will be–the most common in your world.  

Common Occurrence Form Coverage Questions

Want to know more about occurrence form coverage? This little FAQ section should do the trick! Don't see your question listed here? Make sure you comment at the end of our post in the reply section–we'll make sure your question is answered! 

What are some of the other types of insurance? 

So, we've talked about occurrence form coverage, but what else is out there? The most common alternative for OF coverage is claims-made coverage. 

What's the difference between Claims Made and Occurrence Form Coverage? 

Claims made coverage doesn't have a lifetime guarantee on the time period of when your policy was active. Instead, it only offers you protection if your policy is active.

So, think about that same scenario we talked about above. Pretend you had a claims made policy for all of 2020–then, you switch policies to something else. 

Now, someone sues or alleges an issue for the time period where your claims made policy was active. If you don't have a current or active policy at the time of the allegation–even if you had coverage at the time the incident took place–you're not covered by your insurance. 

Have more questions about occurrence form coverage? We've got answers! We're consistently dropping helpful, knowledgeable advice for clients on our blog.

Our mission? To give you the answers you seek so you can make the best insurance decision for yourself. If you're ready to work with the best, though, we've got your back there, too!

Peep our insurance policies (made exclusively for cosmetologists, BTW!) and see if we'd make a good fit. We're here to protect your career, your ambitions, and your beauty pro dreams!