Cosmetology Insurance & Cosmetologist Liability Insurance

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Cosmetologist insurance is a specialized insurance plan that offers professional liability, general liability, workers' compensation, commercial property, and other policies. Get this if you're a cosmetologist who owns a clinic, renting a booth, or working at a beauty establishment. Read this guide to know:

• The function and limits of the different types of cosmetology insurance policies

• The cost of premiums

• Recommended insurance companies for a comprehensive coverage

Cosmetology Liability Insurance

Limits Of General Liability Insurance for Cosmetologists

Accidents can happen in your employer’s beauty establishment or the cosmetology clinic you own. Consider getting a $2 million cosmetologist liability insurance as a countermeasure.

You must get general liability insurance as a salon booth renter. No landlord will sign the rental agreement if you’re not covered.

General liability insurance for cosmetologists covers costs if clients, vendors, independent contractors, and other third parties sustain injuries or property damage because of your business.This is useful when:

• An independent contractor gets electrocuted and falls from a height while installing signage or lighting for your cosmetology clinic

• You spilled dye over a client’s expensive clothing

• Your beauty equipment caught fire, and the booth you’re renting sustains damage

• Your chair is defective. It slumped to the floor, and the person sitting on it sustained a broken hip

• Your hair trimmer went haywire and inflicted the client’s scalp with cuts and burns

You use general liability insurance to cover these costs each time a third party files a claim for bodily injuries or property damage:

• Medical treatments

• Refunds for property damage

• Settlements for pain, suffering, and property loss

• Defense costs

• Compensation for punitive damages

Cosmetologist liability insurance comes with an equipment floater that covers replacements or repairs if carts, hair trimmers, scissor kits, and other equipment get lost or damaged because of theft.

General liability insurance doesn’t only protect you against claims for bodily injuries, property damage, or equipment theft. This policy is very broad and will also take care of other exposures, such as:

• Claims for slander, libel, copyright infringement, invasion of privacy, and breach of confidentiality

• Claims filed by the landlord because you damaged his or her commercial space

• Auto accidents that a vehicle you hired or borrowed caused

• Claims for bodily injuries or property damage because of a treatment or procedure you delivered

Cosmetologist Professional Liability Insurance

Limits Of Professional Liability Insurance for Cosmetologists

You need $1 million-$2 million professional liability insurance for cosmetologist. While not a licensing requirement, get professional liability insurance, as most spas or salons will look for this before hiring you as an independent contractor.

Also called malpractice insurance, professional liability insurance kicks in if you commit errors and oversights while tending to a client’s hair, giving facial and exfoliation treatments, etc. Use this insurance when:

• A client sues for $180,000 because your services caused hair loss and scalp burns

• You used the wrong exfoliator. The client sustained rashes and burns on her face

• The client files a claim after a waxing treatment left ugly marks on her skin

• Your cosmetology service allegedly caused bacterial infection due to poorly maintained beauty equipment

• You failed to assess bodily conditions, and the client experienced significant pain and suffering during a wrinkle removal procedure

Every time you face a claim for negligence, oversights, malpractice, violation of good faith, violation of fair dealing, inaccurate advice, and breach of confidentiality, professional liability insurance will take care of these costs:

• Settlements

• Defense costs

• Court judgments

Your professional liability insurance can take care of other things. For one, the policy can cover business interruption or income loss because you have to take part in an investigation or attend court.

Professional liability insurance might even cover the cost of proceedings for the cancellation of a license. This is the reason why massage salons, hairdressing salons, nail salons, makeup salons, skin care clinics, microblading clinics, and other beauty businesses get this policy.

Commercial Property Insurance for Cosmetologists

Limits Of Commercial Property Insurance for Cosmetologists

Commercial property insurance is useful if you own a cosmetology clinic or renting one. This is not very useful if you’re just renting a booth. But note that the landlord might require you to get commercial property insurance and name him or her as an additional insured.

Commercial property insurance reimburses your financial losses if your cosmetology clinic or booth gets damaged or destroyed. Coverage only applies if damaged or destruction is caused by:

• Fire

• Theft

• Vandalism

• Civil commotion

• Riot

• Malicious mischief

• Sinkhole collapse

• Volcanic action

• Impact

• Aircraft

• Vehicle

• Rain

• Winds

• Snow

• Hail

• Lightning

• Sprinkler leakage

• Smoke

Commercial property insurance for cosmetologists doesn’t only cover the building or booth but also your personal property. And so, this insurance can recover your losses if beauty equipment, chairs, tables, tablets, cash, credit cards, key and locks, and other valuables get damaged or lost.

Remember this; Without any endorsements, commercial property insurance doesn't cover the loss or damage of business property due to mudslides, landslides, floods, earthquakes, and wars. Also, this policy excludes business personal property in transit.

Business Interruption Insurance for Cosmetologists

Your commercial property insurance might come with business interruption insurance. This policy applies if you can’t provide services and generate income because:

• Your building or booth needs to be repaired after getting damaged by fire, hail, wind, lightning, vandalism, or theft

• You have to relocate

• An economic crisis occurs, and you have to stop operations

Business interruption insurance supplements your lost revenues for 30-360 days. You can use the money to cover these costs:

• Bills for electricity, water, and utility services

• Employee wages

• Loans

• Taxes

• Mortgage

• Equipment rental and other costs to relocate

• Rent or lease payments

Equipment Breakdown Insurance for Cosmetologists

Beauty equipment is essential in your work as a cosmetologist. It’s impossible to provide quality service without chairs, hair trimmers, facial machines, electric massage devices, hair dryers, and other tools.

Get $2,500-$10,000 equipment breakdown insurance to avoid losing money and mitigate losses if such beauty equipment breaks down. Equipment breakdown insurance for cosmetologists covers repair or replacement costs if the tools you use get damaged or lost due to:

• Operator error

• Impact

• Electrical shorts

• Electrical surge

• Mechanical breakdown

• Mysterious disappearance

Important note: Equipment breakdown insurance doesn’t cover normal wear and tear.

Commercial Auto Insurance for Cosmetologists

Limits Of Commercial Auto Insurance for Cosmetologists

Commercial auto insurance isn’t a very popular protection among cosmetologists who own a clinic, rent a booth, or work for a beauty establishment. But consider this if you’re a mobile cosmetologist.

Purchase commercial auto insurance as a countermeasure if something happens while you’re driving the vehicle for commercial purposes. This insurance functions to:

• Cover the medical treatment and property damage of victims if you cause a vehicular accident

• Mitigate the cost of repair or maintenance if the car you use as a mobile cosmetologist sustains damage due to fire, theft, vandalism, collisions, and other covered perils

• Reimburse vehicle rental or public transportation fees while your commercial vehicle is being repaired

• Cover your medical treatment if the driver who caused the accident can’t grant indemnification

By default, commercial property insurance doesn’t cover trailers and other equipment attached to your commercial vehicle. Solve this by adding a trailer and equipment floater to your commercial auto insurance.

Workers Compensation Insurance for Cosmetologists

Purchase worker's compensation insurance if your cosmetology clinic has one or more part-time and full-time employees. Failure to get this will result in a fine, imprisonment, or a cease and desist order.

If you’re just renting a booth and working solo, you don’t need workers' compensation insurance. But we suggest you reconsider. Having workers comp is handy, especially if you don’t have health insurance.

Workers' compensation insurance kicks in when you or an employee sustains rashes, cuts, burns, infections, bloodborne diseases, and other inflictions because of work. This insurance will cover:

• First aid treatment, private EMT services, surgeries, therapies, and other medical costs

• Hospital bills for food, laboratory, nursing, imaging, observation, and others

• Prescription medicines

• After-hospital visits and public transportation expenses

• Rehabilitation and retraining

• Lost wages

• Funeral costs

• Allowance to dependents

Workers' compensation insurance doesn’t automatically cover independent contractors, volunteers, or interns working for you. Coverage only applies if you name these entities as additional insureds for free or at a cost.

Also read:

• Beauty Therapist Insurance & Beautician Insurance Quotes From $5

Cosmetology Insurance Cost 

General liability insurance for cosmetologists costs $33 per month or $396 per year for a $1 million coverage. This cosmetology insurance cost estimate assumes that you have 5 employees and generate $500,000-$750,000 per year. Get cheap cosmetology insurance by:

• Keeping your certificates and portfolios up to date

• Joining cosmetology organizations recognized by state licensing boards

• Paying higher deductibles

• Bundling two or more insurance policies

Insurance companies charge differently. Here’s a table showing the rates of the recommended carriers that allow you to get a cosmetology insurance quote online: