As skin care specialists, estheticians work with people routinely, giving them advice regarding skin care treatments. Because the service provides recommendations or guidance, an esthetician must have appropriate professional liability coverage.
Professional liability insurance has also been called errors and omissions coverage. It protects you if a client claims your advice caused them harm or cost them money. It covers legal fees and any judgments that may be entered against you based on your client’s claim. Whether the claim is accurate or not, your professional liability coverage will assist you.
- 5 best professional liability insurance companies for estheticians
- Are estheticians required to have professional liability insurance?
- What does esthetician professional liability insurance cover?
- What is esthetician liability insurance and what does it cover?
- Other insurance coverage estheticians may need
- How much does esthetician professional liability insurance cost?
- What affects the esthetician’s professional liability insurance costs?
- Finding esthetician professional liability insurance you can afford
5 best professional liability insurance companies for estheticians
- Simply Business: Best for finding cheap coverage by comparing several quotes in one place
- NEXT: Best for a complete digital experience and affordable rates
- CoverWallet: CoverWallet: Best for comparing several quotes from reputable companies
- NACAMS: Best for estheticians who are members of NACAMS
- ASCP: Best for higher aggregate coverage limits
Simply Business: Best for finding cheap coverage by comparing several quotes in one place
Simply Business is an online insurance broker that specializes in business insurance. When you request a quote from them, they do the legwork of checking with multiple providers to find the best quote for you. Typically, the entire quote process takes less than ten minutes.
As a broker, Simply Business doesn’t provide you with insurance coverage. Instead, they connect customers to insurance providers. They work with a network of insurance providers, and they find quotes from their network. The rest of the work regarding your insurance—underwriting, customer service, and claims—is handled entirely by the third-party insurance company.
Pros:
- Offer a resource library that gives basic coverage needs for various business types
- One application gets you multiple quotes
Cons:
- Can’t file a claim directly through Simply Business
- Limited coverage options
We requested a quote from Simply Business for professional liability for an esthetician in Decatur, Alabama. The quote below is the result of that request.
NEXT: Best for a complete digital experience and affordable rates
NEXT offers online policy management and the ability to manage your account through an app. They offer multiple policy types, but they suggest general and professional liability insurance. The company does offer additional coverages like workers’ compensation and commercial auto.
You can manage your policy entirely online. Whether you need to get a certificate of insurance or file a claim, you can do either from the mobile app or the customer portal online. The company offers affordable monthly premiums for both general and professional liability policies.
Pros:
- Get quotes, buy a policy, and manage the policy completely online on their mobile app
- Estheticians can purchase additional policies
- Relatively affordable rates
Cons:
- Must pay down payment upfront
- Lower aggregate limits
We requested a professional liability quote from NEXT for an esthetician in Decatur, Alabama, and they returned a quote for general liability. You’ll see the quote for that below.
General liability coverage for an esthetician is pretty cheap, just about $8.34 per month. However, when we call NEXT to inquire about a professional liability policy, it is actually at $38 per month.
CoverWallet: Best for comparing several quotes from reputable companies
CoverWallet isn’t an insurance provider. Instead, it’s a concierge service providing quotes to small businesses in multiple fields. You can request quotes for various insurance products, including liability, workers’ compensation, and commercial auto policies.
You can get your quote and manage your policies all in one spot. Requesting a quote from CoverWallet could save you time searching for multiple quotes from multiple providers. CoverWallet will return up to three quotes with one completed application.
While CoverWallet isn’t a provider, they do provide you with online tools for managing your policies. You can pay your premiums, file your claims, and download a certificate of insurance for free using their online tools. They even allow businesses who purchase coverage elsewhere to use the online tools for an annual fee.
Pros:
- Online quotes from multiple reputable providers
- Offer several coverage types
- Personal consultants are available
Cons:
- Sometimes it takes a while to receive a quote
- Occasionally have to call to complete the process
We requested a quote from CoverWallet for a professional liability policy for an esthetician in Alabama. The company returned an estimate but asked we call for a finalized quote.
NACAMS: Best for estheticians who are members of NACAMS
The National Association of Complementary and Alternative Medicines (NACAMS) has policies that Arch Specialty Insurance Company underwrites. Arch Specialty Insurance has an A+ rating from AM Best, meaning it has superior financial strength. NACAMS offers occurrence form coverage, so you’ll be covered for an incident that occurred when the policy is active, even if the claim was filed after it expired.
NACAMS doesn’t offer business personal property insurance, but if your equipment and facilities are rented, you will be protected with up to $100,000 if the facility is damaged and up to $1,000 for stolen, lost, or damaged rental equipment. In addition to affordable policies, NACAMS offers bonus perks like a free professional website and discounts on business supplies.
Pros:
- Covers over 350 services
- Occurrence-based claims
- Monthly billing
Cons:
- No business personal property coverage
- When the policy expires, claims become invalid
ASCP: Best for higher aggregate coverage limits
Associated Skin Care Professionals (ASCP) has higher aggregate coverage limits than most of its competitors. Their policies include $2 million per occurrence and $6 million aggregate limits for product, general, and professional liability insurance. The company offers an endorsement for business property insurance with limits of $10,000 or $25,000.
This company offers occurrence policies and allows you to add additional insureds at no extra cost. Most companies do have an additional charge for additional insureds.
ASCP members who perform advanced services such as laser hair removal or body contouring could be eligible for Advanced Modality Insurance (AMI). The company offers two tiers of AMI coverage with costs based on the services you provide.
Pros:
- Occurrence policies available
- Additional insured endorsements at no cost
- High aggregate coverage limit
Cons:
- Premiums are more expensive
- Lowest AM Best rating among competitors
Are estheticians required to have professional liability insurance?
Although it is not required by law, most, if not all, estheticians have professional liability coverage. This is the most essential coverage for any esthetician. Most salons or clinics require you to have coverage before letting you work with their clients.
If you are a contractor with a salon or a clinic, you definitely need to have your own professional liability policy. If you work full-time at a clinic or a salon, you may be included in the clinic’s master policy. However, you may still want to have your own policy. Because the clinic’s policy is to protect the clinic, not you. If you are named specifically in a lawsuit, your need your own policy to fully protect you.
What does esthetician professional liability insurance cover?
Professional liability insurance (also known as errors and omissions or E&O coverage) helps you defend yourself if you’re sued because you or someone who works for you makes a mistake while providing esthetician services. For example, if a client sues you because you used a skincare treatment that caused a severe rash, it could help cover legal and settlement costs. Professional liability insurance can help pay for:
- Professional negligence, whether claims are actual or alleged.
- Legal defense costs if you’re sued because you or an employee provide bad advice or services to a client.
- Legal judgments if you’re found guilty in court of providing poor or harmful services to a client.
Learn more at the best professional liability insurance companies for estheticians
What is esthetician liability insurance and what does it cover?
Esthetician liability insurance may include professional liability, general liability, and product liability coverage in one bundled policy or 3 separate policies. Most estheticians must have professional liability insurance before they can work on a client. It may not be required by law, but the clinic or salon where you work will require it.
Product liability insurance for estheticians
In addition to professional liability insurance, estheticians may need product liability insurance too. Product liability insurance covers you if a client sues you because she suffers from harm or damage caused by a product you applied or advised her to use.
You can buy a separate product liability insurance policy or you can add product liability coverage to your professional liability insurance policy to save money. It should cost additional $10-15 per month for this coverage.
Learn more at Esthetician Liability Insurance: Cost & Coverage
General liability insurance for estheticians
Some estheticians may need general liability insurance, especially those who own their salons or provide services at their clients’ houses.
General liability insurance covers primary risks faced by them. It provides financial protection if anyone (other than an employee) is injured on your business property or you or someone who works for you damages property that doesn’t belong to you while offering esthetician services. General Liability can help you pay for:
- Medical payments if someone is injured at your business location, for instance, if someone slips and falls on a wet floor.
- Property damage if, for example, an esthetician spills lotion on a client’s expensive sweater and ruins it.
- Legal fees and judgments if you’re sued over a covered injury or damaged property.
Learn more at the best general liability insurance companies
Other insurance coverage estheticians may need
Some estheticians may need more than just liability coverage. They may need workers comp insurance if they hire employees, commercial auto insurance if you use a vehicle for work purposes, and commercial property insurance if they rent their work location. These coverages cover other risks associated in their esthetician’s business.
Learn more at the best esthetician insurance companies
How much does esthetician professional liability insurance cost?
The average cost of a $1M professional liability insurance policy for estheticians is $27 per month. Most estheticians pay between $15 to $68 per month for their professional liability insurance policy.
If you add on product liability coverage to your professional liability policy, the average cost will increase by another $10-15 per month.
This is just the average rate that tens of thousands of estheticians are paying. Your rates will be different. Make sure you always compare several quotes on Simply Business or CoverWallet to find the cheapest one for you.
Learn more about other esthetician insurance coverage costs at how much does esthetician insurance cost
What affects the esthetician’s professional liability insurance costs?
Professional liability insurance costs vary significantly from one esthetician to another, based on the risks that your business faces and other factors, including:
- The types of skin, hair care, and bodywork you do
- Where your salon is located
- The size of your business: number of clients and monthly/annual revenue
- Your payroll and the kinds of work your employees do
- Work experience
- Whether you use vehicles for work
- Previous insurance claims
- The insurer and how they calculate premium prices.
Finding esthetician professional liability insurance you can afford
Professional liability insurance is essential if you give clients advice as part of your daily business practices. Several factors affect the cost of the insurance, including your coverage limits. The best way to find affordable professional liability insurance is to shop for various quotes. You can do that by contacting companies yourself, or you can use a broker such as CoverWallet or Simply Business to help you find multiple quotes quickly.
Final thoughts
Estheticians spend their days working closely with people giving them advice regarding skin care and products or treatments that could be helpful. When someone spends their professional life giving advice, they must have appropriate professional liability coverage. The coverage is invaluable if one of your clients claims negligence or you gave them bad advice. Shop for proper coverage and rates.
