Liability Insurance For Beauty Professionals
The Three Main Types Of Coverage
What Are The Three Main Types of Liability Insurance Coverage?
When you’re looking at protecting your career in beauty, insurance is usually the first stop. Cosmetology insurance is your career’s lifeline whenever an unexpected event threatens your livelihood. At the center of this coverage stands your policy, which acts as a contract between you and the insurance company. But do you really know what all is covered and why it matters?
In today’s cosmetology and esthetician insurance spotlight, we’ll cover the three main types of liability insurance coverage, as well as additional protections included with Elite Beauty Society policies that really ramp up the level of protection for today’s beauty professionals.
Professional Liability Coverage
Professional liability coverage is one of the most common coverage types out there for professionals offering a service to the general public. This is because by offering a service, you have a basic duty to care for the wellbeing of your client while they’re using your services. As a cosmetologist, you have to be incredibly well-versed both in the methods and techniques of beauty but also in other areas like safe sterilization of equipment and even spotting skin disorders.
The duty of care for cosmetologists and estheticians is high because they need to be cognizant of many different variables all at once in order to best serve clients both safely and skillfully.
Just during the course of the day you’ll be using sharp instruments around sensitive areas, mixing and applying powerful chemicals, and using hot irons to pull off a certain look. A lot of the tools used in cosmetology are dangerous and one small mistake can be all it takes for an accident or injury to occur during a client's appointment.
At some point in your beauty career, you may face a claim alleging your service brought about some form of injury or damage to property. Claims related to the actual services you provide as a cosmetologist or esthetician fall under the provisions of professional liability coverage.
Professional Liability Coverage Snapshot:
- Coverage Limits: $2 million per occurrence and a $3 million individual annual aggregate.
- What it Covers: covers the policyholder from third-party claims of injuries or property damage stemming from the professional services rendered.
Example of a Professional Liability Scenario: a cosmetologist is renting booth space at a salon and working as a sole proprietor. One client, a model, needs to get a waxing before an upcoming photo session.
Unfortunately, the wax used is too hot which causes a waxing burn that requires medical treatment. The now former client decides to file a lawsuit both for their medical bills and for their lost wages from not being able to do the shoot.
Elite Beauty Society professional liability coverage provides up to $2 million in claim costs and legal defense fees, when necessary.
General Liability Coverage
General liability insurance coverage is one of the most common types of insurance across industries. That’s because general liability pertains to any number of different occurrences that business owners can be held responsible for.
Accidents, injuries, and property damage that happens in or around where you provide beauty treatments can be cause for a claim being filed against the professional.
General liability is an ideal coverage for professionals simply because there is a great amount of risk present simply by opening your doors for business. Beauty professionals have to be mindful of keeping their premises safe and accessible for clients, visitors, venders, and anyone else who might come into their place of business.
Loose rugs, a small spill, and other fall hazards are just one example of everyday dangers that can cause major issues.
General liability is commonly referred to as “slip and fall”. That’s because this type of injury is the one that TV lawyer’s ads play constantly. “Did you slip and fall at a business? Contact our firm to get you the compensation you deserve!”. Sound familiar? Unfortunately slip and fall injury lawsuits are all too common and this is just one way that, as a business owner, someone can hold you liable for their injuries or damages to their property.
General Liability Coverage Snapshot:
- Coverage Limits: $2 million per occurrence and a $3 million individual annual aggregate.
- What it Covers: provides protection from third-party injuries or property damage claims occurring in or around your place of business.
Example of a General Liability Related Claim: in between a busy day of haircuts, a cosmetologist forgets to sweep up the hair around her chair. While escorting a new client to her booth, the client slips on the loose hair and lands squarely on her hip, fracturing it badly. The accident requires emergency medical treatment, surgery, and eventually rehab.
The cosmetologist receives notice that the client is alleging their negligence at leaving the floor unswept is the direct cause of the accident so they are holding the cosmetologist responsible for all of their medical costs and lost wages. As with professional liability, Elite Beauty Society provides up to $2 million in claim costs and legal defense fees whenever a claim falls under the general liability provisions of the policy.
Product Liability Coverage
Product liability is important for cosmetologists and estheticians for the simple reason that so many different products are used during different beauty treatments. When a client has an adverse reaction to a product you use during their session, they may hold you responsible for paying for any medical bills or other costs.
Product liability coverage is a vital safeguard that provides protection for claims stemming from a client asserting it was your product that caused their reaction.
Cosmetologists do need to be cognizant of different health conditions so they don’t exacerbate an existing condition or provide a service that isn’t ideal for that individual. However, even with safeguards in place like health questionnaires and being mindful of different conditions, a reaction is sometimes completely unforeseeable.
Unfortunately, even when a claim against you for product liability is completely groundless, it can still cost thousands to defend yourself in court. Product liability coverage from Elite Beauty Society is included to provide the best level of protection possible; necessary for ensuring long term success working in the business of beauty.
Product Liability Coverage Snapshot:
- Coverage Limits: $2 million in total for product liability claims
- What it Covers: covers the claim costs and/or legal defense fees stemming from a client having an adverse allergic treatment to a product used during the course of their beauty treatment.
Example of a Product Liability Related Claim: while trying to be extra cautious during the uncertain health climate, an esthetician uses a new brand of organic cleaners on their tools and booth area.
At the next facial appointment, a client starts to complain of itchiness on areas of exposed skin. Soon after, rashes appear and the client says they’re having difficulty breathing. An ambulance is summoned and the client is taken to the hospital for a severe allergic reaction. Since the event occurred from a product you used, the client sends you a demand notice for paying for their ambulance and medical costs.
Additional Safeguards to Watch for in Cosmetology Insurance
While, yes, the big three liability coverages presented above get all of the press, there are several other areas beauty professionals need to make sure are included in their esthetician or cosmetology insurance plans to get the best level of protection from today’s risks.
- Rental Property Damage Protection: most, if not all, professionals need to rent space at some point in their career. When a damage occurs, the landlord can say it’s your responsibility to cover the costs. That’s why Elite Beauty Society includes all the way up to $100,000 to help cover the costs of repairs needed in a rental premises.
- Identity Theft Protection: we live in a world that’s more connected than ever and threats from cyber intrusion have never been higher. Having your identity compromised can be costly and affects your ability to earn a living and make purchases. Elite Beauty Society provides up to $25,000 in identity restoration services after an identity theft against you has taken place.
- Stolen/Damaged Equipment Protection: when the equipment you need to do your job gets stolen during a robbery by force, the damage and loss of property can be the last thing you worry about. After you’ve had time to process the ordeal and are ready to return to work, you’ll need to replace what was taken from you. Our plan helps cover the costs of purchasing new equipment so you have one less thing on your plate.
These additional protections are included in cosmetology and esthetician insurance plans produced by Elite Beauty Society because we understand the real risks facing beauty professionals today.
With stout coverage for the three main types of liability insurance, as well as additional protections like these, our cosmetology insurance plans are some of the most all-encompassing available today.
Talk Over Your Situation with a Licensed Agent
Still not quite sure how liability insurance would work for your unique situation? Talk through the entire policy and get answers to all your questions now.