Let’s Talk Liability Coverage

Why You Need Occurrence-Form Coverage Over Claims-made Coverage

It’s no secret that cosmetology liability insurance is a must in this industry.

If you ask us (and to be honest, any other successful pro in the biz), professional beauty insurance is one of those fundamental things that every cosmetologist and beauty pro needs to ensure the longevity of their career, the success of their business, and the good standing of their reputation (not to mention the support and protection should anything go wrong, actually or allegedly).

Unfortunately, while the idea of liability insurance is always good, not every type of policy is created with your long-term interests in mind.

By that we mean, not every type of policy is created equally.

That’s why knowing the types of insurance is so crucial to making the right insurance choice for you—because, without this knowledge, you could be stuck with a policy that doesn’t cover you when you need it most.

Of course, we’re talking about two types of coverage:

  • Occurrence-Form Coverage
  • Claims-made Coverage

Today, we’ll dive into both so you can better understand them, but we’re not shy about our opinion—we’re happy to come right out and say that occurrence-form coverage is the superior type of policy (that’s why it’s the only type of coverage we offer at Elite Beauty Society).

What is Occurence-Form Coverage?

This is the type of coverage that we exclusively offer at EBS—and after we explain what it is, you’ll probably understand why.

Occurrence-Form coverage is a type of insurance policy that provides you with a lifetime coverage period for incidents that occur during its policy period, regardless of when a claim is made.

That means that even if your policy has expired, if someone reports a claim against you that happened during your policy period, you’ll be fully covered.

What is Claims-Made Coverage?

On the other end of the spectrum, you have claims-made coverage.

This type of coverage means that the policy you pay for only covers you for claims that happen while you’re still paying for that coverage.

In other words, let’s say that a client sues you six months after an alleged event.

At the time of the event, you were covered under a policy. Since that time, your policy expired. With claims-made insurance, you will not be covered for that incident even though you were covered at the time it happened.

Here’s a simple way to think about claims-made coverage—if your policy lapses, your coverage disappears, even for incidents that happened during the time you were covered.

Are you more of a visual learner? We get that.

Here’s a quick tip—check out our short video right here to give you a better idea of the difference between Occurrence-Form and Claims-made coverage.

Why You NEED Occurrence-Form Coverage for Your Cosmetology Liability Insurance

Let’s simplify this before we get too deep into the argument for Occurrence-Form Coverage.

The fact of the matter is that you need professional liability insurance to protect yourself in cases where something goes wrong or something allegedly goes wrong.

But here’s another fact, not all types of insurance is created equally.

As you read above, Occurrence-Form Coverage and Claims-made Coverage are very different, and TBH, we believe that one type is much (much!) better than the other.

It’s probably no secret we’re team #OccurenceFormCoverage.

It’s what we offer our cosmetologists now and forever because it provides them with the most reliable, comprehensive coverage possible.

In other words, we only sell Occurrence-Form policies to make sure our members get the best long-term protection possible—specifically to cover you even after your policy has expired if the incident occurred during your time of coverage.

This Type of Insurance Will Always Have Your Back

We like to characterize this insurance as lifetime coverage for the policy period.

This means that even if someone files a claim against you months (or even years) later, you’ll be covered so long as the incident happened during your policy period.

In other words, you can have peace of mind knowing that this type of insurance is going to have your back no matter how much time has passed.

It’s the Industry-Preferred Standard

Even though Occurrence-Form Coverage is the industry choice, there are still lots of programs (and competitors) who opt for Claims-made.

To put it simply, Occurrence-Form Coverage is the premium standard for cosmetologists and beauty pros.

By investing in this type of insurance, you can rest easy knowing that you’re investing in the type of insurance that’s considered the industry standard.

These Policies Are More Straightforward

Occurrence-Form Coverage is as simple as asking one question—did the incident in question happen during your policy period?

If the answer is yes, then you’re likely covered no matter how much time has passed.

This makes for a straightforward, easy way to look at your policy and your coverage—it helps you combat issues that might arise after the fact, too.

Love the insurance advice we’re offering you?

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