Licensed estheticians work to keep their clients' skin healthy and clear. It's a holistic job that combines treatments with customer service to help clients to look and feel their best.
But this type of work isn't without its risks. Lawsuits over poor treatments, allergic reactions, and injuries could hurt your business. And even if you're an esthetician who works as a contractor for a spa, you could be held responsible for damage at the office or harm to their reputation. Let's see how esthetician insurance can help you address these risks.
General Liability Insurance
General Liability Insurance can cover the cost of third-party (i.e., non-employee) lawsuits over bodily injuries, property damage, and reputational harm (like libel or slander). So say a patient slips on a slick floor and breaks their arm. An esthetician liability insurance policy like General Liability can help cover your legal bills if they sue.
General Liability may also cover property damage lawsuits. If you work as a contractor at local spa, salon, or medical office, you could be sued if you damage the office's property. Given how expensive medical and spa equipment can be to replace, you probably wouldn't want to shoulder that cost on your own.
Estheticians usually pay about $350 a year, or $29 per month, for their General Liability protection.
If you own your own business, a Business Owner's Policy (BOP) is a good deal. It bundles General Liability with Commercial Property Insurance to protect esthetician equipment you own, including your office, spa equipment, tools, creams, and more. A BOP is usually offered at a rate lower than what you'd pay for each policy separately.
Professional Liability Insurance
Professional Liability Insurance (also called Errors and Omissions Insurance) may cover lawsuits when your patients or their families sue you over an alleged work mistake.
Think about what could go wrong during the services like…
- Chemical peels.
- Exfoliation treatments.
- Body wraps.
You often work with chemicals and hot wax on sensitive parts of the body. If a customer suffers an allergic reaction, waxing burn, or is scarred, they could sue you. Professional Liability Insurance can help cover the cost of these lawsuits.
Professional Liability Insurance for estheticians usually costs around $400 per year, or about $33 a month.
Worth noting: If you provide micro pigmentation / permanent makeup services, you may have a hard time finding Professional Liability Insurance. Many insurance carriers consider permanent makeup liabilities to be too risky. However, some offer coverage if these services are 25 percent or less of your business. If you offer these types of services, it's a good idea to check with your insurance agent to see if you can get coverage.
Workers' Compensation Insurance
If you work as a contractor, you may not need Workers' Compensation Insurance. However, if you own your own practice and have employees, it may be required by law. Workers' Comp regulations are determined at the state level, so check the requirements in your state.
Workers' Comp helps your business pay for employee work injuries and illnesses. It can cover their medical costs, ongoing treatments, and partial lost wages if they miss work to recover.