What kind of insurance does an esthetician need? Your Guide to Insurance and Benefits

Why do estheticians need insurance?

Imagine this: Your client says they’re down to cleanse their skin morning and night. But they’ll skip the moisturizer since their skin is oily enough. You can initiate your eye roll now.

In the world of beauty business operations, insurance is just as essential to your business as moisturizing is to your skincare routine. Insurance isn’t a cherry on top; it’s the ice cream! You’ve got to have it!

Before you drop a “y tho” meme in the comments, here are our top eight reasons why insurance for estheticians is a must:

1. Many states and regulatory bodies require esthetician insurance coverage.

Since different states and their regulatory bodies can have insurance requirements, where you operate your business also determines your insurance needs. States like Idaho make esthies carry insurance to get their licenses. And many states require businesses to purchase insurance coverage when they have employees.

Here’s the tricky bit: If you try Googling “what kind of insurance does an esthetician need in each state,” you’re not going to find anything definitive. The reason: States regulate both professions and their services. 

Your best bet for understanding insurance regulations is to do a deep-dive of esthetician requirements with your state board. You can also get help from your insurance provider.

2. Your business contracts may require you to have insurance.

Renting a space to perform your esthetician services? Borrowing money or taking out a loan to finance new business costs? Having your clients sign agreements before performing esthi services? Each of these contracts may require its own business insurance. 

3. Clients can sue your esthi business if they get hurt.

You’re shooting for beauty “wow’s,” but sometimes you end up with beauty “ow’s,” like:

• Scarring and welts after a facial? Ugh!
• Burns and blisters after a chemical peel? Ick!
• Major lifting from a bikini wax? Nooo!

What kind of insurance does an esthetician need for accidental injuries? Whether or not you’re at fault, a liability insurance policy for estheticians can help you when a customer sues you for causing accidental harm. Common cases estheticians face include claims for:

• Allergic reactions.
• Chemical or wax burns.
• Skin infections and damage.
• Slips, trips, and falls.
• Overall dissatisfaction.

4. They may have a Birkin.

Insurance isn’t just for bodily injury to your clients. Coverage can protect their things, too. 

So if your products inadvertently damage your clients’ clothes or accessories, or if your clients’ property gets stolen while they’re at your salon, insurance might cover those losses.

5. Bad things can happen to your stuff, as well.

Fire break out in the salon? Microdermabrasion machine stolen? Esthetician insurance coverage can help you replace broken tools or equipment. It can even replace your lost income if you can’t operate your esthetician business due to a covered property loss.

6. Esthi insurance can help you attract employees.

Money talks, but insurance does, too. 

Great employees aren’t just looking for the dollar signs on their checks. They’re also looking for benefits, including insurance for their esthetician services. Carrying insurance builds credibility and shows employees you’re serious about protecting them and the brand. That’s why being insured can help you attract and retain employees.

7. And it can protect the employees you have.

If your employees get hurt on the job, they’ll need help with medical bills, missed wages, and (worst case) even funeral benefits. Insurance can step in to help cover the costs of work-related injuries and illnesses.

8. The best insurance for estheticians gives you peace of mind.

Want to tint brows or extract blackheads while imagining all the bad things that could happen to your esthetician business? We didn’t think so. 

With the best esthetician insurance coverage, you can stop ruminating on the what if’s and focus on growing your practice. Even when the unexpected happens, you can be at ease knowing you have protection.

What kind of insurance does an esthetician need?

The types of insurance coverage you need really depend on the services you perform. Here are the two insurance policies every esthetician needs:

• General liability insurance for bodily injury and property damage claims from anyone but you and your employees. (i.e. Your client slips and falls at your salon. You accidentally spill wax all over their new phone.)
• Professional liability (or errors and omissions (E&O) insurance for claims of negligence, like you making a mistake during a service. (i.e. Your client has an allergic reaction to products you used during their facial. They suffer from burns during their wax treatment.)

Other types of esthetician insurance coverage you may consider:

• Additional insured certificates for salon owners, landlords, and other people or entities you work with.
• Product liability insurance covers claims that a product you used or sold hurt someone else. (Here at WellnessPro, we include product liability insurance with your general and professional liability policy so long as you don’t manufacture or alter the products.)
• Personal and advertising injury protects you from claims of libel, slander, invasion of privacy, advertising mistakes, or copyright infringement.
• Fire legal liability insurance covers accidental fire damage to rented property.
• Coverage for additional wellness services, like massage therapies or fitness coaching.

Other Kinds of Insurance for Estheticians

What other kinds of insurance does an esthetician need?

More esthetician insurance coverage you may want but that we don’t currently offer at WellnessPro:

• If you have employees (even one!), workers’ compensation insurance covers medical bills, lost earnings, and funeral expenses if those employees get injured or sick on the job.

• Equipment coverage can insure your pricy beauty and business tools and equipment.

• Property insurance protects the premises where you work (rented or owned) and whatever’s there, like your steamers, lamps, and esthetician beds.

• Cyber insurance covers you when your business gets hacked, online systems shut down, or customer data gets stolen.

• Business interruption insurance helps pay for lost income, moving costs, or temporary equipment or premises rentals after you have to unexpectedly close up shop due to a fire or natural disaster.

• Business owner’s policies (BOPs) combine general liability insurance with other additional coverages, like property insurance and business interruption coverage.

How much is insurance for an esthetician?

Esthetician insurance costs vary by what state you’re in and what services you perform. 

Here at WellnessPro, esthetician policies, including general and professional liability, start as low as $159 a year. To purchase insurance, simply select and pay for the protection you want via our 15-minute coverage form.