Cosmetology Insurance

Cosmetology liability insurance

Professional liability insurance is also known as malpractice insurance for cosmetologists, or E&O insurance. It covers you if one of your clients claim you were negligent, made a professional error, or failed to deliver promised services. Even if technically aren’t at fault, your clients can still sue you, which can lead to your reputation being damaged. Professional liability insurance helps cover any claims of negligence, misrepresentation, or incorrect advice given by you or your employees.

Benefits include paying any legal fees or court costs in the event you face a lawsuit regarding professional mistakes.

Let’s say you leave hair dye on one of your clients a little too long and it causes them to experience minor burns on their scalp. A professional liability insurance policy will cover your client’s medical bills so you do not have to pay out of pocket. That’s pretty great.

Cosmetologists might pay around $37/month for professional liability insurance, which averages around $444/year.

General liability insurance for cosmetologists

General liability insurance is one of your basic business insurance coverages. It protects you against claims of bodily injury (to a third party), if you damage someone else’s property, as well as claims regarding libel, slander, and false advertising.

Benefits help protect your small business from having to pay out of pocket if a client were to file a lawsuit against your cosmetology business.

If a client trips over a cord at your place of business and requires medical treatment, you would be responsible for their medical bills. If they sue you, you are also responsible for paying any legal fees and court costs. Basically, your general liability policy would foot the bill.

Cosmetologists pay an average of $25/month for a general liability policy. This averages $300/year.

Cosmetologist workers’ comp

Employees or not, odds are you’ll be required to have a workers’ comp insurance policy. It protects you from workplace injury or illness claims.

Workers’ comp benefits include medical bills in regard to illnesses or injuries while on the job, lost wages, and employee lawsuits.

Let’s say your employee burns themselves when using a hot styling tool. Workers’ comp insurance will pay for their medical bills and lost wages. If an employee wants to file a workplace injury lawsuit, a workers’ comp policy will help protect you.

When it comes to paying for a workers’ comp insurance policy, the exact cost will depend on things like your location, your specialty, how many employees you have, and more. With no employees, cosmetologist workers’ comp can cost as little as $63/month.

Property insurance

Business property insurance helps cover any damaged or stolen tools and equipment you use to run your cosmetology business. Imagine if something were to happen to your business property and you could no longer use it to treat your clients. What would you do? Property insurance does not only cover expensive property, like your computer, it also covers your everyday equipment, like hair dryers. In other words, it covers the building, as well as the contents.

Let’s say a pipe bursts in your building and ruins your supplies. Property insurance will cover this destroyed property.  (So you don’t have to.)

The cost of property insurance typically hovers around $30/month for cosmetologists, or $360/year.

Cosmetology BOP

A business owner’s policy, or BOP, is specifically designed for small business owners like you. A BOP combines general liability and property insurance at a cheaper price than getting each policy separately.

Learn about BOP costs.

Cyber insurance for cosmetologists

Wondering if cyber insurance is really necessary? If you use email, have a cosmetology website, allow your clients to book appointments online or take payments online, then yes, you could definitely benefit from this coverage.

Cyber insurance benefits include helping you pay the costs associated with a cyber-attack – remediation, legal assistance, customer refunds, and more.

If a hacker gets into your system and steals all of your client’s credit card information, a cyber insurance policy will protect you from the financial impact of this breach. In short, it’s a good thing to have.

Most cosmetologists pay between $25 and $50 a month for cyber liability insurance.

Other insurance policies

Umbrella insurance provides you with extra protection as it will pay more than the maximum limits of your other small business insurance policies.

Business auto insurance is necessary if your business owns and operates a vehicle.

Cosmetology insurance cost

How much will cosmetologist insurance will cost you? It depends on things like your company size, number of employees, location, and overall risks.  Usually, it’s a case-by-case situation.