How Much Does Estheticians Liability Insurance Cost

/ BLOG

How Much Does Estheticians Liability Insurance Cost

According to the Bureau of Labor Statistics,[1] the Esthetician job market is expected to grow by 14% by 2026. It’s not surprising that this profession is an easy choice when looking for a business to start.

As an Esthetician, you go to work every day and make your customers feel beautiful and healthy. You can affect real change in people’s lives and the way they see themselves, and it is incredibly inspiring.

So you passed your license exam and found a spa to work in. Now what? Now is the time to consider purchasing a Professional Liability Esthetician’s policy.

Today we want to talk about how much this type of policy costs and what are the factors contributing to that cost.

 

How much does Professional Liability Insurance cost?

An answer to this question, as many answers in the insurance world, is “It depends.” Typically, the policy for a salon esthetician starts from around $513 a year, but this premium may fluctuate based on several factors. Remember no two policies are exactly the same since the insurance company takes into account not only the type of policy you are purchasing but also unique factors about you as well as combinations of coverages that another policy might not have.

Factors that determine a policy’s cost

Some of the factors which have an influential impact on determining the cost of your policy can include:

–    Carrier’s base rates: before any discounts or surcharges the insurance company will have a baseline rate they start with

–    Types of treatments: the riskier Esthetician fields that engage in treatments that incur higher cost lawsuits or more frequent lawsuits will result in a higher rate. Typically, a medical Esthetician will be more expensive from the insurance standpoint than a salon Esthetician

–    Industry experience: Experience plays a huge role in how likely you are to get sued as an Esthetician. Even though many Estheticians eventually have to deal with a lawsuit, the less experienced you are, the more chance that you make a mistake. Your rate will be higher if you are just starting out and you can expect it to go down as the time goes by and you gain more experience and obtain an industry-recognized certificate in your field.

–   Policy limit: Policy limit affects your premium as well. In some instances, the higher the policy premium – the higher the policy cost

–    Deductible: A deductible is the portion of the claim that you promise to pay. The higher your deductible (i.e., your portion of the cost of the claim) the lower the premium.

–    Coverage for multiple estheticians: The more people are insured under the same policy, the riskier that policy is for the insurance company, and thus the more expensive it’ll be for you. If you are a salon owner and have people working for you, your policy will cost more.

How can I save on policy premium?

The only two factors that you can play around with to affect your policy premium are the policy limits and deductible. The Professional Liability policy limit starts at $500,000 and can go up to $1M, $2M or even more. A deductible for a small operation is $1,000.

Aside from increasing your deductible and lowering your limits of liability, you can also make sure to obtain industry-recognized certifications to obtain professional discounts (if the carrier offers them – not all do).

 

Why you need a Professional Liability policy?

As you can see many factors determine the cost of Esthetician’s Professional Liability policy. However, you might be asking – why should I add on another expense, especially if a salon I work at has a policy anyway? Or maybe you are thinking – I am careful, and very good at what I do. Why would anyone sue me?

The answers to these questions will highlight why it is so essential to have an Esthetician’s Professional Liability insurance policy.

Let’s start with answering the second question, first.

I know what I am doing, would I still get sued?

The beauty industry is a very litigious environment. As an Esthetician, you hold someone’s health and beauty in your hands. Even if you are the world’s best Esthetician, mistakes still happen. After all, you are human!

Sometimes the occurrence will happen due to an error on your part. Sometimes it can be something as simple as an equipment malfunction. More so, sometimes the unfortunate incident will be of no fault of yours at all, but that of your client. Your client could forget to disclose relevant skin condition or allergies, or even push you to finish the treatment against your recommendations.

Exposures

So what are your some common exposures as an Esthetician?

–    burns due to waxing

–    allergic reactions

–    chemical burn because of chemical peel treatment

–    laser burns

Personal vs. spa insurance policy

It’s a common misconception that the spa’s Professional Liability Insurance policy covers the Esthetician employees and contractors individually.

At the very least, the below considerations warrant a serious discussion with salon’s owner to make sure that you know precisely what coverage their policy affords you.

–    Side hustles – The master policy of the spa you work for specifically excludes any work that is not done as your work for the spa. The carriers have to include this exclusion to protect themselves from a barrage of claims they will otherwise get that they didn’t properly charge the premium for.

This means that if you decide to take on a client in your spare time or do a favor for an old friend and perform some treatments for them – you are not covered by your employer’s policy.

If a lawsuit is brought in as a result of this “side hustle” the policy will deny the claim. If you think there is even a shred of possibility that you will agree to take a client outside of the spa, you should strongly consider purchasing your own professional liability policy.

–    Coverage for an individual – Even if you are sued for a treatment that you performed at the spa, it is not a guarantee that you will be covered. Some Professional Liability policies will only provide the coverage for the entity, and the employees that were working on its behalf. What does it mean for you? If the lawsuit named you specifically along with naming the entity (as they often do), the policy would only cover the cost to defend and the settlement associated with the entity. You, the Esthetician, will have to pay out of pocket for your own defense as well as your portion of the settlement.

When discussing insurance with your employer, it’s important to mention these two issues.

Another reason to not rely on the spa’s insurance policy is that you simply don’t know what kind of exposures are insured.  Sometimes only limited types of treatments are insured as a way to save money at the beginning, but the policyholder fails to update them as the business grows. You also don’t have control over getting the policy renewed. You might find yourself with an uncovered claim due to an expired policy that wouldn’t have covered the specific treatment anyway.

The costs of hiring an attorney, court fees and of course the settlement can add up to hundreds of thousands of dollars.  For a growing business, adding yet another expense may seem daunting, yet it could save you thousands of dollars in legal fees.

 

Conclusion

Unfortunately, there is no clear-cut answer to the question of “how much will a Professional Liability Insurance policy cost me?”. However, that might not be the right question to ask.

It often helps to see the other side of this particular coin by asking: “What is the cost of not having a Professional Liability Insurance policy?”.  That question we can answer definitively – lawsuits are exhausting and expensive. Just the cost of hiring an attorney can add up to thousands of dollars, depending on how many hours your case takes. By not purchasing a policy, you might be saving $400 a year, but when a lawsuit hits, your out of pocket cost could be that premium X 100.

An Esthetician, Professional Liability Insurance, is essential whether you are an experienced business owner or just starting out. Bizinsure can provide you with instant quotes as well as human support on the other side of the screen (or the phone!). Click here to complete a short online form to receive your quotes instantly for Esthetician Lability Insurance.

 

 


[1] Bls.gov. (2018). Skincare Specialists : Occupational Outlook Handbook: : U.S. Bureau of Labor Statistics. [online] Available at: https://www.bls.gov/ooh/personal-care-and-service/skincare-specialists.htm#tab-6 [Accessed 23 Aug. 2018].

Sheree Williams
Sheree Williams
19:39 27 Jul 21
Eugene was Awesome!!!!
Lakesha G
Lakesha G
17:19 21 Jul 21
Excellent solution for writers and authors professional liability policy as well as coverage for copyright and trademark infringement. Service was prompt and excellent.
Lane
Lane
18:22 22 Jun 21
Jugrid Ombisi
Jugrid Ombisi
16:26 15 Jun 21
Done in less than an hour!
William Opperman
William Opperman
00:30 02 Jun 21
Efficient, and great value. The agent was able to give us a quote and a new policy in a short period of time. Thank you
Brenda Jones
Brenda Jones
20:30 24 May 21
I had a great experiencing obtaining several of my insurance needs as a landscaping company here in Northern Colorado. BizInsure's team took care of my needs and was very responsive to help with paperwork needed to secure a potential client account!
Arik Solberg
Arik Solberg
16:34 10 May 21
Adj Ako
Adj Ako
16:47 05 May 21
Very efficient they were able to help me out with my request promptly....highly recommend this companyI am very happy to have them
Elba Perez
Elba Perez
18:50 26 Apr 21
I need a help getting errors and omissions insurance along with general liability. Jose was very friendly informative and was very patient with me during the process. He found me some of the best rates for the coverage that I needed. Highly recommend
Casper Martinez
Casper Martinez
19:51 20 Apr 21
I had numerous conversations with several business insurance agents over a month's time. I also had several conversations confirming the policy inclusion/exclusions and asked many questions. My BizInsure agent was professional, knowledgeable and most important—detail oriented. Even after having an initial conversation a month earlier he knew and *remembered* all my personal/professional insurance needs. When I asked for additional information on the third call he was able to provide me with details very quickly. He was also VERY patient. That is a big plus in my opinion. It illustrated a high level of respect for my needs. I also found when I called back and asked to talk with the initial agent, the person who answered the call was able to get in contact quickly and my agent responded and returned the call within 5-10 minutes. The transaction was smooth, and I think it's a good sign should I ever need to make a claim. I highly recommend BizInsure.
Poetic Films
Poetic Films
21:00 07 Apr 21
Sandra Darjean-Murphy
Sandra Darjean-Murphy
17:48 31 Mar 21
Jusephine Ghong
Jusephine Ghong
17:58 23 Mar 21
The rep was extremely helpful actually lowered my quote and made sure I was covered to fit my needs with my growing business! 5star!!
Franklin Behm
Franklin Behm
19:04 16 Mar 21
Excellent service and prices.
Cassiopée V Lapierre
Cassiopée V Lapierre
23:13 09 Mar 21
S & S Professional care llc Home Health Agengy
S & S Professional care llc Home Health Agengy
04:15 24 Feb 21
Mr. Daniel Scott was very responsive to my professional needs.
Stephanie Woodruff
Stephanie Woodruff
17:38 18 Feb 21
Eugene deserves a raise! First time purchasing insurance and he made the process so simple for me. His patience and attention to detail left me feeling confident in my decision to choose BizInsure. Gracias Eugene!
Esined Perez
Esined Perez
23:32 17 Feb 21
DIVINE FIJIANS HOME CARE SERVICES
DIVINE FIJIANS HOME CARE SERVICES
22:49 05 Jan 21
The customer service provided by Jose was outstanding. He explained everything in a very clear/logical way and answered all of my questions. After providing all the information to obtain general liability insurance, Jose sent me the declaration page of the insurance for review. All of the information matched what I provided over the phone and there were no typos. The next day I called back to purchase the insurance which was easy and fast. Overall, my experience with BizInsure including the customer service by Jose exceeded my expectations.
Joe Wajdula
Joe Wajdula
03:29 12 Dec 20
Hiscox/BizInsure made getting Liability Insurance very easy and reasonable.I expected it to be a long and complicated process and it was a nice surprise that they made it so uncomplicated. Thank you. Lisa
Lisa Word
Lisa Word
21:51 24 Nov 20
Eugene was incredible. I called 4 other brokers before him who were impossible to get any help.
rhonda hale
rhonda hale
23:26 12 Nov 20
Owner (LPN)
Owner (LPN)
23:19 06 Nov 20
Cincere Browdy
Cincere Browdy
15:16 29 Oct 20
Very quick to get in touch with you and good with follow up. Had some trouble retrieving my quote to log into my account initially but Daniel assisted me and the changes were made to get me into my account. Great value for the money.
Fran Sutton
Fran Sutton
16:34 20 Sep 20
Very happy to be insured with this company. Professional, Timely, very helpful. Thank you Juan, you made it so much easier for me to understand.
Aileen Day
Aileen Day
19:55 15 Sep 20
This company responded when I needed them to respond while facing a deadline. They are an excellent choice for business Insurance.
Michele Harris
Michele Harris
01:52 12 Sep 20
Jose Quintero took such great care of me and was very patient explained everything I did not understand and got me set up quickly. Fabulous customer service
Christina Rose
Christina Rose
02:41 27 Aug 20
I can't say enough good things about Daniel Santos kind and effective communication skills as an insurance agent. Daniel was so pleasant, friendly and efficient with helping me obtain insurance as a teacher. If I were to give Daniel a grade, he has earned an At . He made the process easy to understand, it was far easier than what I anticipated. Nancy S.
Nancy Sloan
Nancy Sloan
00:47 26 Aug 20
I was in need of professional liability insurance for my sole proprietorship. A friend referred me. Everythng was quick and simple and AFFORDABLE!
hope jones
hope jones
20:31 25 Aug 20
If you need Private Home Care Provider insurance for your company, BizInsure, LLC can get it for you!
Pamela Curry
Pamela Curry
16:45 24 Aug 20
Cameron Peek
Cameron Peek
19:25 24 Jul 20
Great and fast service!!!! The representative was very professional!!!!
Tanya Sweet
Tanya Sweet
19:51 14 Jul 20
I was tryi9ng to find commercial liability insurance for my new comp-any and BizInsure was easy to use and very affordable which is great for me as a new business.
Jimmy Smith
Jimmy Smith
19:01 14 Jul 20
Great service, but they're also extremely patient. I called over a month ago for specialized E & O coverage, and Bizinsure was able to put me in touch with an extremely reasonable quote. Absolutely invaluable time and monetary savings to be had by going through these folks. If you can-- ask for Anthony. Absolute gem of a human.
James Lang
James Lang
18:19 02 Jul 20
Ken M
Ken M
23:21 28 Jun 20
Great service insurance prices are great for professionals looking to get insurance for businesses....
Rhonda Gray
Rhonda Gray
22:34 22 Jun 20
The provided very professional service and made the process easy.
Paul Rising
Paul Rising
21:51 04 Jun 20
Bradley Hoyle from the Biz Insure team was excellent to work with. Everything was quick and smooth. Great service, much appreciated!
Kristene Smith
Kristene Smith
02:03 04 Jun 20
Anthony Spencer was great!! Very quick response time!! He was very Professional! I would suggest him because he helped me find a affordable rate and explained all the technicalities..
Fre Hall
Fre Hall
16:38 28 May 20
I was referred to Bizinsure by a industry trade group that I am a member of. It was easy to get a quote online and then received excellent customer service from Bradley H. to complete my policy purchase over the phone. I have shared this company information now with other business owners for their policy needs.
Dawn Torres-Gale
Dawn Torres-Gale
22:11 08 May 20
This company was very precise with explaining services and made sure I chose the right business insurance coverage, great customer service at purchasing.
Nekeisha B.
Nekeisha B.
01:30 05 May 20
Amazing
Jasmine Q
Jasmine Q
14:31 02 Dec 19
Trish is the most patient, professional and understanding insurance agent I’ve ever worked with. Trish has taken care of all my business insurance needs for the last couple years. I am really happy that I found an insurance agent that I know will take care of me & all of my concerns. I feel like a valued customer & I appreciate the great customer service that I get every time!!THANK YOU!
Dr. Youssef C. Atallah
Dr. Youssef C. Atallah
17:21 14 Nov 18
Tricia helped me get insurance for my business. The task of obtaining a quote was really starting to frustrate me until I was referred to BizInsure through a different agency. Tricia got me a quote fast, and even took a down payment over the phone and issued the proof of insurance the same day. a+ service, would do it again in a heartbeat!! Thank you!!
Josh Mariscal
Josh Mariscal
18:07 22 Jun 18
BizInsure was a great find! I did not have to fill out applications, and Tricia was able to quote and bind business insurance for me within half an hour.
Allison Young
Allison Young
17:28 21 Jun 18
Started doing business again and needed a policy fast. Ramez was reasonable, helpful and the rates are OK. Buyer beware? Sure, for me it turned out OK this time. Worth a call.
Mark Wallace
Mark Wallace
23:42 13 Nov 17
Daniel Scott
Daniel Scott
15:15 27 Jun 17
Great customer service. I've been very inpressed with my dedicated representative that had helped me navegate my insurence needs. Thanks so much!
Graham Blair
Graham Blair
22:12 23 Jun 17