Cosmetology Insurance Policy Information
Cosmetology Insurance. Cosmetology is a vast field that encompasses a number of professions, each of which has its own unique needs for high-quality liability insurance and other types of business insurance.
If you work for yourself as an independent salon owner or work for someone else in a hair, nail, or medi spa, then you need to protect your finances with the right type of level of coverage.
While you may be adept at finding the right hairstyle for your clients or recommending the appropriate wrinkle reduction program for a customer, the truth is that you need the help of a trusted agent to find the right cosmetology insurance for your business.
Cosmetology insurance protects your business from lawsuits with rates as low as $37/mo. Get a fast quote and your certificate of insurance now.
Below are some answers to commonly asked cosmetology insurance questions:
- What Is Cosmetology Insurance?
- How Much Does Cosmetology Insurance Cost?
- Why Do Cosmetologists Need Insurance?
- What Type Of Insurance Do Cosmetologists Need?
- What Does Cosmetology Insurance Cover & Pay For?
What Is Cosmetology Insurance?
Cosmetology insurance is a type of insurance policy that protects beauty professionals, such as hairdressers, makeup artists, nail technicians, and estheticians, from the financial losses associated with their work. It typically covers liability for bodily injury or property damage that may occur as a result of their services.
This can include accidents, injuries, or damage to a client's hair, skin, or clothing. It may also provide protection against legal costs if a client files a lawsuit. The coverage may vary depending on the policy, but most cosmetology insurance policies include general liability, product liability, and professional liability.
How Much Does Cosmetology Insurance Cost?
The average price of a standard $1,000,000/$2,000,000 General Liability Insurance policy for small cosmetologists ranges from $37 to $59 per month based on location, size, payroll, sales and experience.
Why Do Cosmetologists Need Insurance?
A faulty product, an allergic reaction, or a dissatisfied customer can all lead to financial ruin if you are not prepared to handle a liability claim.
If you are a beautician, hairdresser, esthetician, nail tech, makeup artist or salon owner, then you need already know how to make your clients look this best.
However, you probably already know that the close relationship you have with your customers and clients puts you in a precarious situation when it comes to liability.
While obtaining licensing and training for your profession is a given, many people do not understand that to operate a successful business of any type, including a salon, you must have liability insurance and cosmetology insurance coverage.
Without this type of insurance, you are held responsible for any property damage, bodily injury, or accident you might cause or be party to. What's more, you also must pay the cost for defending yourself in court, even if a judge or jury doesn't ultimately award the claimant the money she seeks.
Any settlement awarded is your responsibility. With the right coverage in place, you can set aside worries of paying for claims against you and concentrate on operating your business.
What Type Of Insurance Do Cosmetologists Need?
Most cosmetologists should purchase (at minimum) a good general liability policy. This type of coverage kicks in to pay for things such as damages due to slips and falls or property damage claims.
For instance, if you give a client a treatment that ends up harming the client, then you might be held responsible for paying any medical costs associated with the treatment.
If cosmetology insurance is in place, you just file a claim with the insurer to cover the costs. Moreover, if you damage a client's property while making a house call in to provide services, then your company is not held accountable; your insurance pays the claim.
In another scenario, if a hairdresser working at your salon damages your flooring by spilling a chemical, then your policy can pay for the repairs.
Professional liability insurance is also a must. In the same vein as malpractice insurance obtained by doctors and other medical professionals, this insurance handles claims arising from alleged negligence on your part or the part of your employees.
How Much Cosmetologist Insurance Should You Buy?
Your personal risk tolerance and the amount of assets you must protect play apart in determining the amount of cosmetology insurance coverage you need to fully protect yourself. Each liability policy has an aggregate annual amount that your insurance company can pay out on your behalf each year.
Based on this amount and the inherent risks your company faces, your agent can help you determine how much cosmetologist insurance is right for you.
What Does Cosmetology Insurance Cover & Pay For?
Cosmetologists, like any other professionals, can face the risk of lawsuits due to various reasons. Here are some examples of why cosmetologists might be sued and how insurance can protect them:
Injury to clients: If a client sustains an injury while receiving a cosmetic treatment, such as a cut, burn, or allergic reaction, they may file a lawsuit against the cosmetologist. Insurance, such as general liability insurance, can help cover the costs of legal defense, settlements, or judgments resulting from such claims.
Property damage: Cosmetologists often work with tools, equipment, and chemicals that can potentially cause damage to clients' property. For instance, if a cosmetologist accidentally spills a chemical on a client's clothing, causing damage, the client may file a lawsuit. Cosmetologist insurance can help cover the costs of property damage claims and protect the cosmetologist from financial loss.
Professional negligence: If a cosmetologist fails to provide services up to the standard of care expected in their profession, it could result in a lawsuit. For example, if a cosmetologist provides a hair treatment that results in severe hair damage, the affected client may sue for professional negligence. Professional liability insurance, also known as malpractice insurance, can help cover the costs of legal defense, settlements, or judgments resulting from such claims.
Breach of contract: Cosmetologists may also face lawsuits related to breach of contract. For example, if a cosmetologist fails to provide services as agreed upon in a contract, such as canceling appointments without proper notice or not delivering the promised results, the client may sue for breach of contract. Business insurance, including errors and omissions (E&O) insurance, can provide coverage for breach of contract claims.
Theft or property loss: Cosmetologists often work with expensive tools, equipment, and products. If these items are stolen or lost, it could result in financial loss. Property insurance can help cover the cost of replacing stolen or lost items, protecting the cosmetologist's investment.
In all these cases, insurance can help cosmetologists by providing financial protection, covering legal defense costs, and potentially paying for settlements or judgments, depending on the policy limits and coverage. It's important for cosmetologists to obtain appropriate insurance coverage to protect themselves from potential lawsuits and financial loss.
Commercial Insurance And Business Industry Classification
- SIC CODE: 7231 Beauty Shops
- NAICS CODE: 812112 Beauty Salons
- Suggested Workers Compensation Code(s): 9586 Beauty Shop, Barber Shop, or Hair Styling Salon
Description for 7231: Beauty Shops
Division I: Services | Major Group 72: Personal Services | Industry Group 723: Beauty Shops
7231 Beauty Shops: Establishments primarily engaged in furnishing beauty or hairdressing services. This industry also includes combination beauty and barber shops, as well as hairdressing shops serving both male and female clientele. Beauty and cosmetology schools are included in this industry.
- Beauty and barber shops, combined
- Beauty culture schools
- Beauty shops or salons
- Cosmetology schools
- Cosmetology shops or salons
- Facial salons
- Manicure and pedicure salons
- Unisex hairdressers
Cosmetology Insurance - The Bottom Line
Consulting with an agent who understands the unique nuances of the cosmetology field is an important stepping stone to finding the right and best coverage for your business. Choose an agent who is able to work with several insurers in order to find the most competitive and budget-friendly option for your business but that covers the potential perils that your business faces.
This is the best way to secure your business' solid financial future and protect you from any possible risks that you face as a business owner or salon professional.
Additional Resources For Health & Beauty Insurance
Learn about small business health and beauty insurance coverages that help protect tattoo artists, salons, spas, estheticians, cosmetologists, barbers, hairdressers, nail salons and more from legal liability.
- Barber Hair Dresser
- Beauty Salon
- Day Spa
- Diet Nutrition Services
- Massage Therapy
- Medical Spa
- Nail Salon
- Permanent Cosmetics And Microblading
- Personal Trainer
- Tanning Salon
- Weight Loss Center
The health and beauty industry is a highly regulated sector, with strict rules and guidelines in place to ensure the safety and effectiveness of the products and services being provided. In addition to meeting these regulatory requirements, businesses in this industry also face a number of other risks and potential liabilities. For example, customers may suffer adverse reactions to products, or employees may suffer injuries while providing services. In these cases, the business could be held liable for any resulting damages or losses.
Business insurance can help protect a health and beauty business from these types of risks by providing financial coverage in the event of a claim or lawsuit. For example, a commercial insurance policy may provide coverage for medical expenses or damages that result from a product liability claim. It may also cover legal fees and other costs associated with defending the business against a claim.
In addition to protecting against financial losses, insurance can also help protect the reputation of a health and beauty business. If a business is sued or faces a costly claim, it can damage the business's reputation and negatively impact its bottom line. By having insurance in place, a business can show its customers and clients that it is prepared for any potential risks and is committed to protecting their safety and well-being.
Overall, commercial insurance is an important consideration for any business, but it is especially important in the health and beauty industry due to the unique risks and liabilities that businesses in this sector face. By having the right insurance coverage in place, businesses can protect themselves, their customers, and their employees, and ensure that they are able to operate with confidence and security.
Minimum recommended small business insurance coverage: Business Personal Property, Business Income with Extra Expense, Employee Dishonesty, Valuable Papers and Records, General Liability, Professional Liability, Umbrella Liability, Hired and Non-owned Auto Liability & Workers Compensation.
Other commercial insurance policies to consider: Building, Earthquake, Flood, Leasehold Interest, Real Property Legal Liability, Accounts Receivables, Bailees Customers, Fine Arts, Cyber Liability, Employment-related Practices, Environmental Impairment, Liquor Liability, Business Automobile Liability and Physical Damage, Garagekeepers and Stop Gap Liability.