As an esthetician, you go to work every day to make your clients feel attractive and healthy. It is tremendously inspirational to create genuine change in people’s lives and perceptions of themselves.
However, if you are not protected against the claims and lawsuits that occasionally emerge in this field, you may expose yourself and your firm to responsibility.
Estheticians undertake treatments that may occasionally yield undesirable effects. In such cases, if you are uninsured, a single lawsuit from a client can ruin your career and leave you bankrupt.
In this post, we will examine the typical cost of coverage of esthetician business insurance. We will also examine the several types and every other information you need to know.
- How much does esthetician insurance cost?
- Average costs of different insurance coverages for estheticians
- Esthetician insurance quotes
- Different insurance coverages that estheticians might need and their costs
- What are the factors that affect the cost of esthetician insurance?
- How to get cheap esthetician insurance?
How much does esthetician insurance cost?
The average cost of a $1M/2M general liability insurance policy for estheticians is $24 per month, or $288 per year. Most estheticians pay from $16 to $85 for their general liability insurance policy. This is a wide range because the cost varies depending on the coverage limits, deductibles, and more importantly the coverage inclusions in the policy. It is quite flexible and easy to include other coverages such as product liability, inland marine, or professional liability in a general liability policy.
Keep in mind that no two plans are precisely the same because the insurance company considers the kind of policy you are buying, specific aspects about yourself, and combinations of coverages that another policy may not have, especially when you compare several quotes.
Average costs of different insurance coverages for estheticians
An esthetician may need several coverages to protect themselves and their career. These coverages may be included in one master general or may be purchased separately. When possible, you should try to bundle them in one policy to reduce costs.
Below are some common coverages estheticians usually need and their costs:
|Esthetician insurance coverages||Average costs|
|General liability insurance||$24 per month|
|Professional liability insurance||$27 per month|
|Product liability insurance||$13 per month|
|Commercial property insurance, including equipment||$46 per month|
These are just the averages. Your rates will be different. Be sure to shop around with a few companies or work with a broker to compare several quotes to find the cheapest one for you.
Esthetician insurance quotes
The following are some sample quotes for esthetician insurance gotten from NEXT, Simply Business, and CoverWallet. While NEXT is a direct insurer, Simply Business and CoverWallet are good insurance brokers that can help you compare several quotes.
Again, keep in mind that their quotes may be vastly different, but so do their coverages and inclusions/exclusions. When comparing several quotes, be sure to pay attention to the details.
Your rates from these providers may be very different. It should take less than 10 minutes to get quotes from them. You should give it a try.
Different insurance coverages that estheticians might need and their costs
The following are the most common insurance policies that estheticians might need and the average cost.
General liability insurance coverage
Most estheticians pay between $16 and $85 for their general liability insurance policy. This is the most common policy for estheticians.
The policy pays for costs and expenditures associated with relevant claims, such as injuries or accidents, property damage, fraudulent or misleading advertising, and injury or accident claims.
The following are some examples of what the policy may cover:
- Oil spill on your floors causes one of your customers to slip and fall with serious injuries. Your general liability insurance will pay for their treatment and legal representation if they decide to sue you.
- During a beauty session, you mistakenly drop a client’s phone breaking its screen. Your general liability insurance will cover the cost of repairing the phone.
- A local esthetician in your area alleges that your business advert on YouTube is causing harm to their reputation. Your general liability insurance will cover the cost of hiring legal defense for your case and other associated damage payments if the court finds you guilty.
Errors and omissions insurance (E&O insurance) or professional liability insurance
Errors and omissions insurance can cost between $15 and $79 for estheticians.
This coverage, which is also called professional liability, safeguards your company from losses incurred as a result of mistakes, accidents, or poor advice or services that you provide. This coverage is necessary because estheticians can be held liable for their mistakes.
Examples of cases include:
- Your client claims you installed a false eyelash wrongly; this policy may pay for the damages involved
- You gave a client advice or forgot to mention an important healing strategy for someone after a procedure. This policy will cover you if such a client sues you.
Commercial property insurance
Most estheticians pay between $28 and $96 monthly for their commercial property insurance. In some cases, estheticians may pay more depending on the value of their commercial property.
The major purpose of this policy is to protect against the following risks:
- Building Destruction – Commercial property insurance will compensate you based on the salon’s real cash worth or replacement cost if it was damaged by fire or severe weather. Note that damage caused by earthquakes and floods is not included.
- Building Damage – Suppose your salon was damaged by fire, theft, vandalism, harsh weather, and other covered risks; commercial property insurance will reimburse damages based on the real cash worth or cost of replacing damaged buildings such as doors, windows, signs, roofing, etc.
Some insurers allow you to extend the coverage of your estheticians’ commercial property insurance with certain inclusions. The following are examples of inclusions that you can buy at extra cost:
- Stocks and Contents Coverage – This feature of commercial property insurance reimburses your losses if cosmetic items, lights, salon furniture, and interior decorations are lost or destroyed due to fire, theft, vandalism, or other insured hazards.
- Business Equipment and Tools Coverage – Business equipment and tools coverage is an element of commercial property insurance that covers the cost of products like facial machines, beauty beds, trolleys, and massage beds that are lost or destroyed due to fire, theft, vandalism, or other insured disasters.
Product liability insurance
As as esthetician, you often sell or use different products on your clients’ faces and bodies. These products could cause issues to your clients and they may decide to sue you. Product liability insurance protects you in such cases. Most people think that the manufacturers of these products should be sued if your clients suffer from these products. However, since you recommend and use these products on your clients, you may be named in the lawsuit too. Without this insurance protection, it will be very costly for you to protect yourself.
Learn more at Esthetician Liability Insurance: Cost & Coverage
Workers’ comp insurance
Most estheticians pay between $30 and $100 for worker’s compensation.
If an employee sustains an injury or becomes ill while on the job, workers’ compensation will reimburse the business for any associated medical costs and lost wages. Worker’s compensation is compulsory in most states as long as you have employees, so you may want to get this policy.
Learn more about other insurance coverages estheticians may need and the best insurance companies for estheticians
What are the factors that affect the cost of esthetician insurance?
A policy’s premium may be affected by a variety of factors. The following are some examples of the kinds of elements that may play a role in deciding how much your insurance will cost:
Every insurance company has its unique way of seeing risks. Therefore, they a general rate that they give to all estheticians before the application of any premium adjustments. This general rate is called the base rate of the carrier. As you fill in your information, the carrier will apply discounts or surcharges to the rate to arrive at your final premium rate.
Types of treatment
Esthetician areas that participate in riskier treatments, such as those that result in higher cost litigation or more frequent lawsuits, will have higher rates as a direct consequence of their work. Similarly, estheticians working in a medical setting will often incur higher premiums than estheticians working in salons.
Experience in the industry
Experience is a major factor in determining whether or not an esthetician will successfully defend themselves against a legal claim. If you lack expertise, there is a greater likelihood that you will make a mistake.
Therefore, if you are just getting started in the sector, you can anticipate that your rate will be greater. But it will decrease as time passes; you will likely get less premiums as you get more expertise and perform safe operations.
The policy limit is another factor that contributes to determining your premium. In most cases, the cost of the insurance will increase proportionately to the amount of the policy’s premium.
A deductible is the amount of the claim the policyholder is responsible for paying out of their pocket. Your premium will be reduced as the amount of your deductible (your share of the total cost of the claim) increases.
Number of employees
The more persons that are protected under the same policy, the riskier that policy is for the insurance provider, and as a result, the more costly it will be for you to purchase. If you run a salon and employ several employees in addition to yourself, the premiums for your coverage will be higher.
How to get cheap esthetician insurance?
The following ideas may help you get discounts on your esthetician insurance. Before making a purchase, it is important to bear the following in mind concerning the prices:
Consult with an independent agent
Consult with an independent insurance agent. They will be able to point you in the direction of carriers with the best insurance policies for esthetician companies and the best prices.
Conduct risk assessment
Your insurance price is usually a function of your risk levels. So if you are aware of your business risks and you work towards reducing these risks, you may be able to cut the cost of your premiums.
To determine the possible dangers that may befall your company, you should do a comprehensive risk assessment, considering the products and services you provide and the customers you assist.
Shop around for the best price
Premiums vary widely across providers. Therefore, you should consider getting many estimates to discover the best pricing and coverage that suits you.
Purchase several policies together
Most insurers will give you discounts when you buy multiple policies from them. For example, if you purchase a business owner’s policy in addition to liability and property coverage, you may be eligible for as much as a 20% discount in some places.