Q: Do I need my own insurance for my esthetician services if I rent space at someone's location?
A: We recommend as an independent contractor / self-employed professional you have your own insurance. Since most salon owners who both rent do not provide insurance for independent contractors you could be risking your income and professional reputation by not having insurance.
Q: When should I buy liability insurance?
A: Since many locations request if you are self-employed that you carry your own coverage even before you start at their location you should consider buying insurance when you are actively pursuing a location to provide esthetician services, currently at a location providing service or even as a student when you are being trained and waiting for your license.
Q: Where can I find the best rates for liability insurance for estheticians?
The most AFFORDABLE rates are provided by national associations or groups because of the larger numbers of professionals in the association and the flexibility to cover all 50 states.
To save even more money be part of an association that covers several services on one plan as well as offers part-time discounted rates.
Also check with the association if they offer match pricing programs and can lock in your rate as long as you are a member so your rates do not increase.
Q: What are the types of liability I should have?
A:The most common types of liability for cosmetologist is professional and general liability.
Professional Liability also known as malpractice protects you and your business for loss or expense resulting from claims of professional errors, mistakes, or failure to perform professional duties committed or alleged to have been committed by the insured in his or her professional activities.
General Liability is a form of insurance designed to protect practitioners from liability exposures arising out of accidents resulting from the premises such as slip and fall.
Q: How much coverage (insurance) should I have?
A: The most common plans include professional and general liability which includes $2-3 million annual aggregate and are occurrence and claim based programs.
Q: What is occurrence type coverage?
A: Insurance that pays claims arising out of incidents that occur during the policy term, even if they are filed years later or if the policy is no longer in effect. Ours is an occurrence base policy.
Q: What is “claims” made coverage?
A: policy providing liability coverage only if a written claim is made during the policy period or any applicable extended reporting period.
Q: How quick can I get esthetician insurance coverage and proof?
A: If purchased online most association applications are approved instantly or as little as 2-3 business days.
Several associations do not offer same day processing by phone or mail so check with the association representatives about how long it may take if you choose this method.
Q: How do I know if the insurance carrier is stable and legitimate?
A: You can review the rating of any insurance carrier by visiting rating agencies such as A.M Best Company, Standard & Poor’s, or Weiss Rating. Look for a “A” rating or better.
