Working with harsh chemicals and handling sharp tools bring daily hazards to your work as a cosmetologist or salon owner. Business insurance policies can offer you protection against both legal liability and property damage and are essential for any type of small business.
Not sure which coverages you should consider as a cosmetologist? Our guide to the best comitology insurance will help you compare policies and providers.
Best Cosmetology Insurance
Learn more about the companies that offer policies for cosmetologists by browsing a few of our favorite insurance options listed below.
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Types of Cosmetology Insurance
The type of insurance that you need will vary depending on how your business is set up, the types of clients you see, where you work from and more. Let’s take a look at a few of the most common types of coverages cosmetologists purchase.
Professional Liability Insurance
If you’ve been working in the beauty service sector for at least a few years, you probably already know that even the most well-trained stylist or service provider can make a mistake. Professional liability insurance (referred to as errors and omissions insurance in some select industries) protects your business if a client accuses you of conducting your business in a negligent manner and decides to sue you for damages.
For example, imagine you’re a nail technician who sees a client requesting a new set of acrylic tips. A week after her appointment, the client realizes that she now has a fungal infection under the tips of her nails. Believing that your salon didn’t take proper care to clean your application tools, the client sues you for damages.
In this circumstance, your professional liability insurance will help compensate you for the money you spend defending your business in court. It will also help you cover the cost of court-awarded judgements if you’re found to be responsible for the claim.
Some other instances when your professional liability insurance might come into play include:
- A client who develops an allergic reaction after a facial
- A client who experiences an injury from a nail drill during acrylic applications
- A client who you fail to warn she can’t wash her hair after a perm and who loses her style after doing so
General Liability Insurance
General liability coverage is a type of umbrella policy that protects you against legal claims from a range of injuries. Though general liability insurance inclusions may vary by company, most policies include at least the following coverages:
- 3rd party bodily injury. 3rd party bodily injury coverage protects you from legal claims made after a client injures themselves on your property. For example, if a client slips on spilled oil after a massage and sprains their ankle, they might sue you for the cost of their medical bills. 3rd party bodily injury coverage would help cover the cost of your legal defense and any court-awarded medical bills.
- 3rd party property damage. This coverage compensates you if a client sues you for damage to their property on your worksite. For example, let’s say that a client brings a photo of a hairstyle they’d like on a smartphone and shows it to your stylist. If the stylist drops and damages the phone, the client may sue you for the cost of a replacement. Like with your 3rd party bodily injury coverage, your 3rd party property damage coverage would help you cover the cost of legal defenses and court-awarded judgements.
- Advertising injuries. When you advertise your business, it’s possible to accidentally defame a competitor or copy a competitor’s tagline or slogan. Advertising injury protection helps you cover legal expenses related to cases of slander, libel, defamation and copyright infringement brought against you.
What’s the difference between general liability insurance and professional liability insurance? General liability insurance covers risks associated with property damage and medical expenses, while professional liability insurance covers more abstract risks (like failing to warn a client about a specific ingredient used during service).
If you have general liability insurance, you’ll enjoy a range of protections that include a level of limited professional liability insurance. However, for the most comprehensive protection possible, you should consider purchasing both policies.
Commercial Property Insurance
Commercial property insurance is a type of coverage that compensates you for damage to your commercial space. If you own a salon or workspace where you offer services, commercial property insurance is an absolute must-have. If you’re a renter, maintaining a certain level of commercial property insurance may be required as a term of your lease.
Commercial property insurance is similar to homeowner’s insurance because it protects your own property against a number of covered “perils.” If your property is damaged or stolen as a result of one of these perils, your insurance will offer you a payout that you can use to help cover the cost of a repair or a replacement.
Some examples of instances when your commercial property insurance might come into play can include:
- A thief breaks into your salon after hours and steals expensive products or tools
- A fire breaks out inside of your building, causing damage to the interior structure of the workspace
- Lightning strikes your commercial space, causing damage to your roof
The specific perils covered under each commercial liability insurance policy may vary, but usually include things like vandalism, burglaries, fire and smoke damage and lightning strikes.
Earthquakes and flooding are almost always excluded from coverage, but you may be able to add an additional extension or policy to your plan to protect you from these hazards if you live in an area where these occurrences are common.
Business Owner’s Policy
If you’re interested in purchasing both general liability insurance and commercial property insurance, consider choosing an all-inclusive business owner’s policy (BOP).
A BOP combines your general liability and your commercial property insurance together under a single policy with 1 company. Most business owners choose a BOP over individually purchasing both coverages because it’s more convenient and affordable.
Cost of Cosmetology Insurance
The specific price that you’ll pay for your cosmetology insurance will vary depending on the specifics of your business. Some factors that may influence what you’ll pay for coverage may include:
- The types of services you provide. If your business uses harsh chemicals or specialized tools to offer skin and nail services, you might be at a higher risk of making a costly mistake, resulting in an insurance claim. This increases the price you’ll pay for coverage.
- Your location. If you purchase a policy that includes commercial property insurance, your location will play a large role in determining how much you’ll pay for coverage. Certain crimes and natural disasters are more common in some locations, which influences your likelihood to file a claim with your insurance provider.
- Your business’s number of clients. The more regular clients your business has, the more likely you are to run into an incident where you need to file an insurance claim. Expect your insurance expenses to rise as your client book rises.
As a general rule, you can expect to pay between $95 and $249 per year for a basic general liability insurance policy. As you add additional coverages, the price of your insurance will rise.
How Cosmetology Insurance Works
The phrase “cosmetology insurance” doesn’t refer to a single, specific type of insurance for salon owners and beauty professionals. Instead, it refers to a selection of coverages that cosmetologists purchase to protect themselves from the range of liabilities they may face as a result of their work.
We recommend that cosmetologists purchase and maintain at least a general liability insurance and a professional liability insurance policy. If you work from a physical location that you own or rent, we also recommend investing in commercial property insurance policy that will help protect you from hazards like vandalism and natural disasters.
Depending on the insurance provider you choose, you may be able to combine your general liability insurance and your commercial property insurance together with a BOP to save money.
Cosmetology Insurance Made Simple
If you’re ready to get started searching for the coverage you need to protect your business, begin by collecting a few quotes from competing insurance providers. Because each insurance company uses its own individual formula to determine your monthly insurance expenses, it’s possible to receive 2 completely different quotes from 2 competing insurance providers.
Don’t be afraid to take plenty of time to compare all of your options before you choose the policy that works best for you.