Personal Care, Beauty, and Cosmetology Insurance
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Professional liability insurance for personal care businesses

Professional liability insurance, also called malpractice or errors and omissions insurance, protects cosmetology and personal care businesses against the costs of client lawsuits over unsatisfactory work and negligence.

Protect against work mistakes with professional liability insurance

Whether it’s an ineffective skin treatment at a medical spa or a bad haircut at a barbershop, a simple error could have major consequences. Professional liability insurance can help your business survive a lawsuit.

This policy is also called errors and omissions insurance (E&O) or malpractice insurance, however these policies aren't exactly the same.

Professional liability provides coverage related to:

  • Failure to deliver promised results
  • Accusations of negligence
  • Incomplete or substandard work

While malpractice insurance protects small business owners from lawsuits related to:

  • Client bodily injuries due to improper treatments or negligence
  • Economic damages from a patient's lost wages or healthcare costs
  • Missed appointments and undelivered services

These types of coverage can be required by some states and med spas.

Bundle policies for a discount

Nail technicians, estheticians, and other personal care specialists may be able to bundle professional liability insurance with a general liability insurance policy or a business owner’s policy (BOP) to receive a discount on their premium.

Talk to a licensed Insureon agent to find out more.

Find professional liability insurance quotes for personal care businesses

What coverage can professional liability insurance provide for personal care businesses?

Even the most experienced personal care professional can make a mistake or be sued for a claim of substandard care, such as a service that didn't go as planned or an imperfect applicaiton, as well as violating a patient's privacy.

Professional liability and medical malpractice insurance can help cover the cost of legal defense, including the cost of hiring a lawyer.

Specifically, this type of insurance coverage will help protect beauty and cosmetology businesses from:

Work mistakes and oversights

Even if you’re innocent, a lawsuit alleging a professional mistake can lead to an expensive court battle. A client could take a hairstylist to court over using the wrong shade of hair dye before her wedding, or sue a permanent makeup artist for a small imperfection.

Professional liability insurance helps cover legal fees related to work mistakes. That includes:

  • Attorney’s fees
  • Court costs
  • Settlements or judgments

Claims of negligence

If a massage client claims your shiatsu treatment caused injury, or a customer develops an infection after a manicure, you could face an accusation of negligence. When the quality of your work is questioned, medical malpractice insurance can help pay for lawsuits, including the cost of hiring an attorney.

Undelivered services

Should a scheduling mistake cause you to miss an appointment, a client could take you to court over undelivered services.

If you face a lawsuit related to a failure to deliver microblading, massage therapy, or another service, your professional liability insurance policy can help pay for the legal expenses, including a court-ordered judgment or settlement.

Other important policies for personal care professionals to consider

While professional liability insurance covers work mistakes, it doesn't offer complete protection or peace of mind. A fire at your salon or a customer injury from a fall could devastate your company.

Business insurance policies that benefit personal care, beauty, and cosmetology businesses include:

General liability insurance: This policy covers defense costs related to customer injuries and property damage, such as a client slipping at your day spa. General liability also provides coverage for personal and advertising injuries.

Business owner’s policy: A BOP combines general liability coverage with commercial property insurance, typically at a lower rate than if the policies were purchased separately.

Workers’ compensation insurance: Workers' comp is required in most states for businesses that have employees. It covers medical costs and disability benefits for work-related injuries and illnesses.

Cyber insurance: This policy helps businesses recover financially from data breaches and cyberattacks. It's strongly recommended for any business that handles credit cards, email addresses, or other personal information.

Commercial auto insurance: This policy covers the cost of an accident involving a vehicle owned by your personal care business. Most states require this coverage for business-owned vehicles.

Get free quotes and buy online with Insureon

Are you ready to safeguard your personal care business with professional liability insurance? Complete Insureon's easy online application to get quotes from top-rated U.S. insurance companies. You can also speak with a licensed insurance agent to find the best policies for your business

Once you find the right policy to meet your insurance needs, you can begin coverage and get a certificate of insurance in less than 24 hours.

Updated: March 18, 2024
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