Why Every Esthetician Should Have Liability Insurance
Whether you’re a new esthetician or an established professional, your first priority should always be protecting your business. Every esthetician takes care of his or her equipment, but fewer understand how they can take care of their practice as a whole. One important way to do this is by protecting yourself financially from a potential lawsuit with liability insurance.
Liability insurance is intended to cover you and your business in case of any verdicts or settlements against you. Surprisingly few estheticians know the extent of their liability or what they can be found legally responsible for. Even seemingly small errors can result in significant financial penalties, which is one reason Liability insurance is so important. This article will cover some common questions, including:
- What are my risks as an esthetician?
- How can I protect myself and my business from litigation?
- What is Professional Liability insurance, and why do I need it?
The first step in learning about your insurance options is understanding your potential liability.
My Risks as an Esthetician
Whether you’re performing a chemical peel or a waxing treatment, any service you provide as an esthetician involves taking the client’s health into your own hands. This means that you face substantially more professional liability than someone who works in a traditional office setting.
Estheticians are separated into two categories: salon and medical. Salon estheticians offer cosmetic services like skin care, waxes, and treatments in a spa setting. On the other hand, medical estheticians work in a clinical setting like a hospital or medical office. Their services are generally medical rather than cosmetic.
Some common examples of risks you face as a salon esthetician include:
- Chemical peels resulting in chemical burns
- Allergic reactions
- Wax burns
Since they work in a clinical setting, medical estheticians generally face a higher level of risk. They deal with more potent acids and chemicals as well as laser treatments. Some risks involved in being a medical esthetician include:
- Problems related to skin rejuvenation treatment
- Skin burns caused by laser treatment
- Skin damage from varicose vein treatment
How Can I Protect Myself from Litigation?
Even the best estheticians are bound to make the occasional mistake, which makes it vital to ensure that you’re protected. Any one of these errors could potentially result in a lawsuit. Without a way to avoid the possibility of litigation, the best thing you can do is to protect yourself by getting a Professional Liability insurance policy.
What Does Professional Liability Insurance Cover?
A Professional Liability insurance policy is intended to cover your actions in a professional capacity as a licensed esthetician. You’ll be protected from costs related to the investigation, court fees, and attorney fees up to your policy limit (typically 1 to 2 million dollars). If you are found liable, your policy will also pay any settlements or verdicts.
Professional vs. General Liability Insurance
Many estheticians are unaware of the important distinction between Professional and General Liability insurance. General Liability insurance is focused on litigation after incidents that aren’t directly related to your professional responsibilities. This would include things like clients tripping and falling on the premises, but not malpractice or negligence on your part.
What If I’m Covered Through My Spa or Medical Office?
In general, maintaining your own Professional Liability insurance policy as a practicing as an esthetician can be a sound idea. Many professionals think they’re protected by their organization, but there are a few reasons why that isn’t always true:
- Treatments performed outside the spa: While your spa’s insurance will likely cover you for any actions performed as part of the job, it won’t apply to anything you do individually. You won’t be able to take your own clients on the side without your own Professional Liability insurance policy.
- Individual coverage: Some organizations have insurance policies only apply to the organization itself rather than any of its employees. Therefore, if you’re specifically named in a lawsuit along with your spa, their insurance will cover their costs, but not necessarily your own.
A Professional Liability insurance policy is a vital piece of protection for any esthetician’s practice. There’s always a small possibility of something going wrong, even for the most experienced esthetician. If you have a high-quality Professional Liability insurance policy, you’ll be able to quickly respond to and recover from any litigation. If you’re interested in getting a policy, check out BizInsure for a quick, easy estimate.