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What is esthetician insurance?

Esthetician insurance is a policy, or a group of policies, created for esthetician businesses and professionals.

Though skincare treatments like facials, skin exfoliation and hair removal aren’t exactly dangerous to those performing them, there are some risks to consider. For instance, a client can suffer an adverse reaction or an infection due to your treatment, which could prompt them file a lawsuit against you.

Alternatively, a client may slip and fall inside your spa and hurt themselves, which once again, could lead to legal action. But forget about clients for a moment – what if your spa gets robbed or vandalized? Or what if it gets destroyed or damaged due to a fire? All of this can cost tremendous amounts of money.

As a business owner, you can either pay that money out of your own pocket or have an insurance provider do it for you. The latter is, by far, the most convenient option. And that's why esthetician insurance is highly recommended for all those in the industry.

Who needs esthetician insurance?

If you are an uninsured esthetician who owns a spa, operates a mobile business or works as an independent contractor, then you should have esthetician insurance. It’s an immensely valuable business asset – particularly if you’re a small and/or new business.

After all, trouble can befall you at any time. It can happen today, tomorrow or 10 years from now. What’s important is that you are ready to tackle it head-on. And sure, it’s possible to pay for low-cost incidents with money out of your own pocket, but what if you get hit with a lawsuit that costs hundreds of thousands of dollars?

If you’re a small operation, it’s unlikely you have that much cash available. Even if you decide to save up for a potential incident, getting an emergency fund to the size you might need in the event of a liability lawsuit will likely prove challenging.

Insurance just makes sense both as a long- and short-term investment. Sure, it's another expense to running your business, but it can be a literal business-saver if a costly incident occurs.

What does esthetician insurance cover my business for?

Esthetician insurance typically covers a range of areas, including:

• General liability: Protection against third-party claims of bodily injury or property damage.
• Professional liability: Covers claims related to professional negligence, errors, or omissions.
• Product liability: Provides coverage for claims arising from products you sell or use during treatments.
• Commercial property: Protects your business equipment, inventory, and property from damage or theft.

Esthetician insurance is a customizable product. While these types of coverage form a standard package, you have the choice to add more coverages for an additional fee.

What insurance coverage add-ons are recommended for estheticians?

In addition to standard coverage, there are several add-ons that estheticians should consider, such as:

• Cyber liability insurance: Protects against data breaches and cyber-attacks, especially important if you store client information digitally.
• Business interruption insurance: Covers lost income and operating expenses if your business is temporarily closed due to a covered event.
• Workers' compensation insurance: Required by law if you have employees, it covers medical expenses and lost wages for work-related injuries.
• Commercial auto insurance: If you operate a mobile business, this covers your vehicle and any liability arising from its use. Your personal auto insurance will not cover your vehicle when it's used for business operations.

How much does esthetician insurance cost in Canada?

The exact cost of your esthetician insurance will depend on numerous factors unique to your business. For example, if you run a mobile business, then your premiums will be different from someone running a spa, because the risks are different.

That said, most small operations – with a few employees and limited revenue – should expect to pay no more than $2,500 a year. But, many estheticians, pay less than that, while some pay more.

If you want to know your exact rate, get a free quote online or speak to a broker over the phone. This way, the insurer can use your actual business information to determine your premiums.

What factors determine the cost of esthetician insurance rates?

Several factors influence the cost of esthetician insurance, including:

• Business size: Larger businesses with more clients and employees typically pay higher premiums. That’s because the risk is higher when you have more people working for you.
• Location: Insurance rates can vary based on the region or city where your business operates. For instance, if the area you’re in has high burglary rates, your premium may be higher. The same goes if your location is prone to natural disasters.
• Services offered: The types of services you provide and the associated risks can impact your rates. The riskier the service (e.g. the likelier it is to hurt your clients), the higher the premium.
• Claims history: A history of previous claims can result in higher premiums. For instance, if you’ve filed multiple claims in the past few years, your insurance will cost more.
• Coverage limits: Higher coverage limits generally lead to higher premiums, since it potentially puts your insurance provider on the hook for bigger payouts if a claim is filed.

How does esthetician insurance work?

Esthetician insurance works by providing financial protection against covered risks. When you purchase a policy, you pay a premium to the insurance company. In return, the insurer agrees to cover certain types of claims and expenses up to the policy limits.

If an incident occurs, such as a client injury or property damage, you file a claim with your insurance provider. The insurer will investigate the claim and, if it's covered, pay for the damages, legal fees or other related costs.

If you don't have esthetician insurance, you'll have to pay out of pocket for all costs relating to injuries, damages and legal fees.

How to get the cheapest esthetician insurance quote

Finding affordable esthetician insurance doesn't mean sacrificing coverage. Here are some tips to get the best rates:

• Compare quotes: Shop around and get quotes from multiple insurers to find the best deal.
• Bundle policies: Consider bundling different types of insurance (e.g., general liability and commercial property) with one provider for discounts.
• Increase deductibles: Opt for a higher deductible to lower your premium, but ensure you can afford the out-of-pocket expense if needed.
• Maintain a clean record: A good claims history can help you qualify for lower rates.
• Take advantage of discounts: Ask about any available discounts, such as for professional associations or safety training.