General Liability Insurance protects your small business against claims of third-party bodily injury and property damage, reputational harm and advertising injury. It covers medical bills, repair costs & legal fees.
Workers Compensation covers your employees' medical costs and lost wages while recovering from a work-related injury or illness. The employee gives up the right to sue your company in return for receiving cash and benefits from Workers Compensation. In some states it’s mandatory for businesses!
Errors & Omission Insurance (E&O), is a type of professional liability insurance. It protects you from being legal claims that you made a mistake when offering your services. E&O covers your defense fees & settlement costs.
Business Owners Policy (BOP) protects you from business liability and property damage at a lower cost. BOP covers claims resulting from fire, theft & disasters. BOP also covers claims of bodily injury or property damage during your business operations.
How do Estheticians and insurance connect?
Beautiful skin is more than just an issue of vanity. Commonly confused with dermatologists, estheticians focus on cosmetic skin issues. estheticians help with a variety of skin problems and diseases, from eczema to lupus. Sometimes, a dermatologist will refer a patient to an esthetician to handle particular skincare issues. Often called “skin care therapists”, estheticians realize the importance skin plays in our lives and dedicate themselves to helping others have the best looking and healthiest skin possible.
Many estheticians also deal with the common health industry concerns including skincare advice and owning and operating a business. Each of these primary functions for a practicing and licensed esthetician can come with legal risks. Whether you’re a new esthetician just opening a practice or long-practicing professional, it’s important to know what insurance you need to protect yourself and your business.
Who needs Esthetician Insurance?
Estheticians are not licensed medical doctors and are not allowed to prescribe medications. However, estheticians must be licensed to operate a business. Estheticians offer advice, work in a physical location, and come into direct contact with customers, so there is a need for various insurance products.
Why does an esthetician need General Liability?
You’ll Need This When: Your business begins operating. It is risky to open a business without securing a General Liability policy from day one. Even on the first day of operation, it’s possible for an accident to happen for which you or your business could be held responsible.
For Example: If a customer receives a chemical burn from a product you use on his or her skin, you could be sued. A General Liability policy may insure your business against this type of claim.
When does an Esthetician need Workers Compensation?
You’ll Need This When:
The moment you meet the legally required minimums for your state. In some states, this is as few as one employee. In other states, it could be three or more. Be sure to know the laws of your state and act accordingly to prevent fines.
If your receptionist trips on a cord and is injured on the job, they would qualify for Workers' Compensation. Without this insurance, the employee can sue for damages. Cost of the lawsuit and settlement could bankrupt your business.
When does an Esthetician need a Business Owners Policy?
You’ll Need This When:
You are planning to open your business. You will need multiple forms of insurance. This policy covers multiple areas and is a good option to help hold fewer individual policies.
If an employee spills a skincare product that causes a customer to slip, fall, injure himself and damage your property. Having multiple separate policies, in this case, could become complicated. However, a single Business Owners policy (BOP) can manage the situation in one step.
When does an Esthetician need Errors & Omissions (E&O)?
You’ll Need This When:
You first start operating your business. Just as it is possible for an employee to get injured even on the first day, it is possible to make an error, or omission, on the first day.
If you supply a client with a skincare product but forget to mention the importance of applying the product within a particular routine, the client may experience an adverse reaction. You omay be held responsible for this omission, particularly if the product’s label did not include the direction you'd recommend.
How much does Esthetician Insurance cost?
Insurance costs will vary widely, depending on how you run your business. All estheticians should consider getting a quote to get a better understanding of the real cost of purchasing needed insurance policies.