One of the most common topics I see posted online in forums is about liability insurance. A common theme is consideration to cost and who is the best. At ASCP, we strive to continuously provide the best value for your money, and you can be sure we provide the best coverage available to the industry. Read on to learn why.
While the topic can seem boring, technical, and scary, it’s an important one. Some of these technicalities can mean the difference between you losing everything in a lawsuit or you walking away scot-free.
At ASCP, we always put the member first. We are your business partner; your success is our success. We want you to stay in business, thrive, and build the career of your dreams. You can’t do that if one accident causes you to file bankruptcy, lose your home, assets, and even future earnings. That is why ASCP membership provides liability insurance coverage that protects you from two critical scenarios that might not seem super important at first glance, but can define whether you have the coverage you need in the time of crisis.
One: ASCP membership gives you an individual policy aggregate, not shared.
The liability insurance included in ASCP membership gives you coverage at $2 million per incident and $6 million per year, just for you. Other liability insurance policies have shared aggregates. Why is that important? Because with ASCP you get your own $6 million, and with other companies, if that master policy limit is used up by other members before you, then you have $0 in coverage. Is that a likely scenario? No, it isn’t. But it is a possible worst-case scenario, and ASCP has decided it is more important to give our members peace of mind; we never want any of our members go uncovered when they need us most.
Two: ASCP membership gives you occurrence form coverage instead of the less expensive claims-made coverage.
ASCP has always offered occurrence form coverage because we believe it’s the right thing to do. A lot of the coverage out there does not protect estheticians if their liability insurance policy had expired when the claim was made, or a lawsuit was filed. The ASCP occurrence form coverage gives you insurance protection for when an incident occurred, so long as you were a member when it happened. Other companies may only provide coverage if you’re insured when the claim was made.
For example, if you decided to take your last client on December 31, 2016, and let your membership expire the same day to go on maternity leave on January 1, 2017, and then found out in February you were being sued for an incident on December 31, 2016, you would have coverage with ASCP—because it’s when the incident occurred that matters. If you choose a claims-made policy, you wouldn’t have coverage because you weren’t a current policy holder when the claim was made. If you think cheaper is better, consider this—you’ll need to stay insured upwards of 2 years after you retire so you can be sure the statute of limitations is over for someone to sue you in your state. Wouldn’t it make sense to just have peace of mind, now?
Want to read more about insurance? Check out our e-book with a comparison worksheet here. If you're not a member and are considering joining, check out some other great reasons why ASCP is the largest association in the nation, with more than 16,000 members across the United States.
We care too much about our members to compromise when it comes to your protection. Offering liability insurance is a key part of our membership, and we refuse to offer anything less than the best.
Yours in service,
Lauren Snow is a licensed esthetician and ASCP member.