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Cosmetology Insurance & Cosmetologist Liability Insurance

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Whether you’re an esthetician, makeup artist, massage therapist, or nail technician, taking part in the beauty industry is wonderful if you’re passionate about making people feel good about themselves and look better as well. Self-care is incredibly important when it comes to maintaining self-esteem. Businesses that deal with this go above and beyond for customers.

We’re going to address everything that you need to know about insurance for cosmetologists. Cosmetology insurance isn’t one insurance product. This is an insurance plan that consists of different types of business insurance policies. Read this guide to know the inclusions, the cost of premiums, and the best carriers.


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Cosmetology Liability Insurance

Liability insurance is a primary inclusion in the tailored coverage for cosmetologists. There are many types of cosmetology liability insurance and each takes care of a particular claim third parties file. 

Cosmetology General Liability Insurance 

General liability insurance provides protection against claims filed by vendors, clients, visitors, and other third parties who sustain personal injuries or property damage. By having this insurance you can pay for:

  • Medical expenses-General liability insurance will cover medical expenses on your behalf if you inflicted cuts, lacerations, burns, or any other injuries while providing a cosmetology service 

  • Reimbursements-Third parties will also file a claim if your service resulted in broken phones, clothing, bags, and other personal effects. In connection, general liability insurance will reimburse the value of the damaged properties on your behalf 

  • Legal expenses-General liability insurance sees to it that you get adequate legal defense in property damage and personal injury claims. This insurance for cosmetologists provides the money you can use to pay for attorney fees, settlements, administrative costs, and other legal expenses 

Similar to spas, tanning salons, and beauty salons, your general liability insurance is also scalable. To be specific, this cosmetologist liability insurance has optional coverages you can avail for added protection. These optional coverages are:

  • Rented premises liability coverage-Rented premises liability coverage will reimburse the property owner if the commercial space you’re renting as a cosmetologist gets burned and incurs damage 

  • Advertising injury coverage-Advertising injury coverage will cover attorney fees, settlements, administrative costs, and other legal expenses if a third party sues you for slander, libel, copyright infringement, and other related offenses

  • Products and completed operations coverage-Products and completed coverage will cover compensatory payments, administrative costs, attorney fees, and other legal expenses if a past client files a claim because a service you provided caused personal injuries or property damage

The above optional policies are available or not available depending on your choice of carrier. For this reason, it’s very important for you to look into the features of each carrier’s general liability insurance for cosmetologists. 

Professional Liability Insurance for Cosmetologists 

Regardless of how experienced, you can commit mistakes or errors while providing a service. As a result, clients will incur financial or economic losses and file a claim. Insurance companies protect you against this peril though professional liability insurance. This cosmetologist liability insurance covers reimbursements, attorney fees, administrative costs, and other associated expenses when a customer files a claim because you committed or allegedly committed the following:

  • Negligence

  • Misrepresentation

  • Violation of confidentiality

  • Violation of good faith

  • Violation of fair dealing

  • Other acts considered errors and omissions 

Public Liability Insurance for Cosmetologists 

Public liability insurance for cosmetologists, on the other hand, only applies to members of the public that are on-site at your business, and this makes it a much narrow type of coverage as it will not protect your business in case one of your employees file a claim. Public liability insurance is already included in the language of general liability insurance policies, which is why GL is the coverage that is more recommended for you to obtain as a small business owner.

Product Liability Insurance for Cosmetologists 

Get product liability insurance if you’re selling skincare, hair care, and body care products. This will cover compensatory payments, attorney fees, administrative costs, and other legal expenses if customers sue because the product they bought from you has:

  • Labeling errors

  • Manufacturing errors

  • Design errors 

Note that product liability insurance is available as a stand-alone policy or as an optional coverage in general liability insurance depending on the carrier you choose to work with. 

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Commercial Property Insurance for Cosmetologists 

Much like any other beauty businesses such as hair salons, or massage clinics, you need commercial property insurance if you’re renting, leasing, or owning a commercial building for business operations. Commercial property insurance is available as a stand-alone policy or as an inclusion in specialized cosmetology insurance. Its function is to cover the following perils:

  • Building damage-If fire, theft, vandalism, extreme weather, and other covered perils damage your cosmetology clinic’s door, flooring, roofing, siding, or other structures, commercial property insurance will provide the money you can use to finance repair expenses 

  • Building destruction-Commercial property insurance sees to it that you can resume business operations if your cosmetology clinic is destroyed by a fire or extreme weather. It will provide the funds you can use to cover reconstruction costs 

Similar to salons  and   permanent makeup studios, your commercial property insurance can have the following additional inclusions:

  • Stocks and contents coverage-Stocks and contents coverage will recoup your investments on the products to be sold to customers, clinic furniture, interior installations, and other valuable items, which got damaged or lost due to theft, fire, vandalism, and other covered perils

  • Business equipment and tools coverage-Business equipment and tools coverage will recoup the money you spent for buying or making the cosmetology equipment or tools, which got damaged due to fire, theft, vandalism, extreme weather, and other covered perils 

Business Owner’s Policy for Cosmetologists 

Insurance companies will advise you to get a business owner’s policy (BOP) if you plan to get commercial property insurance and general liability insurance. A BOP bundles the two coverages into an insurance plan that’s cheaper and easier to manage. Aside from general liability and commercial property insurance, a BOP will also have workers' compensation insurance, professional liability insurance, etc.

Commercial Auto Insurance for Cosmetologists

Purchase commercial auto insurance if your cosmetology clinic has its own vehicle used for different business activities. The features of commercial auto insurance vary from one carrier to the next. Nonetheless, the following are the most common inclusions:

  • Auto liability coverage-Your cosmetology clinic’s vehicle will cause an accident and injure third parties or destroy properties as a result. Auto liability coverage sees to it that you don’t incur losses when wrapping the problem up. This coverage will cover the medical expenses of injured third parties and reimburse the owners of properties that got damaged 

  • Physical damage coverage-Commercial auto insurance mitigates the cost of vehicle parts replacement or repair through its physical damage coverage. This is available as collision coverage or comprehensive coverage. Comprehensive physical damage coverage will pay for parts repair or replacement if fire, theft, vandalism, hail, winds, and other covered perils damage your cosmetology clinic’s vehicle. On the other hand, collision physical damage coverage will pay for parts repair or replacement if your commercial vehicle incurred damage after colliding with an object or another vehicle

  • Medical payments/personal injury protection-Medical payments coverage and personal injury protection cover the driver and passengers of your cosmetology clinic’s vehicle. In case of accidents, medical payments coverage will shoulder funeral or medical expenses. Personal injury protection functions the same way but will also cover rehabilitation, after-hospital visits, medication, and more 

  • Uninsured/underinsured motorist coverage-If your commercial vehicle got involved in an accident and the driver at fault doesn’t have insurance or enough insurance, uninsured/underinsured motorist coverage will cover the resulting expenses 

Note that the auto liability coverage in commercial auto insurance is required by law. The same is also true for medical payments and personal injury protection coverage. Physical damage coverage is optional. Nonetheless, you must get it to enjoy the full protection commercial auto insurance provides. 

Workers Compensation Insurance for Cosmetologists 

You need workers' compensation insurance as soon as one or more people are working in your cosmetology clinic. Just like commercial auto insurance, workers' compensation insurance might be included or not included in the tailored coverage for your business. The job of workers' compensation insurance is to cover the following:

  • Medical treatments/procedures-An employee will sustain cuts, burns, lacerations, and other injuries. Frequent exposure to cosmetic products will also result in a disease. Workers' compensation insurance will help you pay for the needed surgeries, therapies, and other medical treatments/procedures

  • Hospitalization-Workers compensation insurance will cover bills if your employee needs to stay in the hospital after sustaining a work-related injury or disease

  • Medicines-You can use workers' compensation insurance to cover the cost of medicines an employee needs to fully heal from a work-related injury or disease 

  • Rehabilitation-Your employee might experience impairment after sustaining a work-related injury or disease. Workers' compensation insurance will help if rehabilitation is required. This insurance will cover therapist fees, rehabilitation equipment, and other associated expenses

  • Lost income compensation-Workers compensation insurance will cover lost wages if your employee can’t work. Coverage for lost wages is a weekly allowance equal to two-thirds or 67% of the average weekly wage. Your employee will receive this until he or she is fit enough to resume working 

  • Death benefits-Workers compensation insurance will cover funeral expenses if your cosmetology clinic’s employee dies from a work-related injury or disease. It will also provide cash assistance to dependents

Understand that failure to cover your cosmetology clinic’s employees with workers' compensation insurance is subject to stiff fines and penalties. If you’re in a state where sole proprietors need to purchase workers comp insurance, then you need to buy the coverage even if your cosmetology clinic doesn’t have employees. 

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Cosmetology Insurance Cost

Finding cheap cosmetology insurance is a lot easier when you understand every one of the factors that go into coming up with the cost of your insurance. 

The average cosmetologist insurance cost is about $33 per month or $396 per year for a $1 million general liability insurance coverage. 

However, one of the main things you’ll have to consider is the size of your cosmetology business since larger businesses have more expensive premiums.

This makes sense when you put some thought into it because larger businesses have more customers, meaning that you’re more likely to have a situation where someone files a lawsuit against you. Compare a business that s

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Best Cosmetology Insurance Companies

Before you decide to go out and get a cosmetology insurance quote, you’ll have to know a thing or two about the companies that you can expect to work with. We’re going to examine the top companies in the industry. Read our reviews to know their pros, cons, and rate for a $1 million general liability coverage. 

Before proceeding, know that you can get effective and cheap cosmetology insurance by clicking the 'Get Quotes' button, completing the form, and comparing quotes online.

CoverWallet Cosmetology Insurance

Pros

  • Stable rates

  • Online quotes

  • Get insured online

  • Cancel a policy anytime 

Cons

  • CoverWallet doesn’t underwrite its business insurance for cosmetologists 

Coverwallet’s cosmetology insurance provides you with four insurance options-general liability only, general liability and commercial property insurance, a BOP with professional liability insurance, and a custom plan. 

This insurance company has an online quotes comparison platform you can use to find other companies selling tailored coverage for cosmetologists. Cosmetologist insurance quotes you’ll receive show the accurate offers and rates of different carriers. 

Choose to work with CoverWallet because this insurance company insures you online. You can also pay premiums through different digital channels. Moreover, you can choose to add landlords and clients as additional insureds to your policy. 

Best for: Cosmetology insurance quotes comparison online

Average cost: $18 per month

Our rating: 10/10

Bodywork Cosmetology Insurance

Pros

  • Best price that we've found

  • $3 million aggregate for liability coverage

Cons

  • Risk purchasing group

Bodywork is a risk purchasing group that requires membership before you can get your insurance coverage through them. The parent company of Bodywork is Veracity Insurance Solutions, which works with the Great American Insurance Company to get Bodywork’s members great rates.

Bodywork cosmetology insurance coverage is available for an extremely reasonable price and it features general and professional liability coverage as well as products and completed operations insurance. It features a limit of $2 million per occurrence as well as $300,000 in damage to premises rented to you.

Best for: Cheapest price

Average cost: $8 per month

Our rating: 10/10

Thimble Cosmetology Insurance

Pros

  • Get insured online 

  • Pause or cancel your coverage anytime 

Cons

  • Customer service doesn’t have a phone number 

Thimble’s cosmetology insurance is available as an annual or short-term policy. When availed as a short-term policy, you can choose to get covered for only hours, days, weeks, or months.  Inclusions are general liability insurance and commercial property insurance only.

Best for: On-demand cosmetology insurance policies

Average cost: $53.13 per month 

Our rating: 9/10

NACAMS Cosmetology Insurance

Pros

  • Different rates for pros and students

  • $1,000 in stolen equipment coverage

  • Very affordable

Cons

  • Not an actual carrier

Unlike the last company, NACAMS isn’t exactly an insurance carrier, but rather a risk purchasing group (RPG). This means that it’s an association of people who share similar risks and purchase insurance together for a preferential rate as well as the same kind of coverage.

NACAMS offers different rates for students and for professionals, but all of their policies share the same kind of coverage. Every NACAMS cosmetology insurance policy comes with both professional and general liability insurance with a limit of $3 million aggregate and $2 million per occurrence.

Best for: New cosmetology businesses 

Average cost: $15 per month

Our rating: 9/10

Next Cosmetology Insurance

Pros

  • Live certificate of insurance

  • 10% discount when buying two or more business insurance

  • Has dedicated custom limits 

Cons

  • Not suitable for customers not used to highly digitalized insurance services 

Next's cosmetology insurance has general liability, professional liability, commercial auto, and commercial property insurance as inclusions. Once you purchase your coverage, you can get a live certificate of insurance and add additional insureds yourself anytime. By the way, we suggest you buy two or more business insurance from Next to enjoy a 10% discount on premiums. 

Best for: Fastest liability insurance coverage

Average cost: $26 per month 

Our rating: 8/10

Hiscox Cosmetology Insurance

Pros

  • Worldwide coverage

  • Claims responsiveness

  • Monthly payments with no extra fees

Cons

  • Poor customer reviews

Hiscox is a British insurance company that has been in operation for over 100 years, acting as an underwriter for Lloyd’s of London. While this company started off in the marine insurance space, Hiscox has since transitioned to niche forms of insurance that other companies may not offer directly.

Hiscox offers both professional and general liability coverage for professionals in the cosmetology space, and the best thing about them is that they provide you with worldwide coverage. As long as you file a claim in the US or Canada, you’ll be covered anywhere in the world with your Hiscox cosmetology insurance policy.

Best for: Larger cosmetology businesses

Average cost: $45 per month

Our rating: 8/10

GEICO Cosmetology Insurance

Pros

  • Easy quote process

  • Good customer service

Cons

  • No tailored add-ons for cosmetologists

GEICO has existed since the 1930s when it was founded as the Government Employees Insurance Company, and it’s one of the largest auto insurance companies in the United States. Along with their auto insurance policies, Geico also offers business and property insurance to a wide range of clients.

Geico doesn’t have a specific insurance policy for cosmetologists but only covers them under their umbrella business policies. While Geico offers relatively affordable coverage, one of the main issues with them is that they don’t have specific add-ons that cater to the needs of people working in cosmetology.

Best for: Small businesses that provide a broader spectrum of services other than cosmetology

Average cost: $38 per month

Our rating: 8/10


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