What Every Solo Esthetician Should Know About Insurance

Working as a solo esthetician comes with greater independence and responsibility. Understanding the different types of liability insurance available is essential for protecting your practice, finances, and professional reputation.  

What is Liability Insurance for Estheticians?

Liability insurance protects estheticians when they are being sued and/or held legally liable for injury, property damage, or negligence. For solo estheticians, liability coverage is essential to protect against claims that could otherwise threaten their career or personal assets.  

1. What is Professional Liability?

Professional Liability is when a client has been injured during the service you performed. 

An example of this is glass falling out of a mag lamp and cutting the orbital bone on a client or a steamer spitting scalding water and burning a client. 

2. What is Product Liability?

Product Liability is when a client has suffered an allergic reaction from a product used on them or sold to them for at-home use. 

An example of this is a rash developing from a client overusing their glycolic acid cleanser. 

3. What is General Liability?

General Liability is when a client has been injured during a slip and fall. This also covers damage to a client’s property during the service as a result of negligence. 

An example of this is wax dripping on a client’s handbag during a brow-wax service. 

4. What is Business Personal Property Insurance?

Business Personal Property (BPP) Insurance is contents coverage for your business. This valuable insurance meets the solo esthetician’s needs in the event of equipment loss due to a fire, flood, or theft. 

An example of this is damage to a suite and its contents including the back bar, treatment bed, and the computer as a result of an electrical fire.  

Shared Vs. Individual Liability Coverage

Not all liability policies offer the same level of protection, especially when it comes to how coverage limits are shared. To be sure your insurance coverage is your own and is not shared with other policyholders, make sure the aggregate coverage on your policy is per individual, per year—not a shared aggregate.   

Why does this matter? If you purchase a policy with a shared aggregate, it means you are sharing the insurance policy limits with fellow policyholders.  

Let’s say your insurance provider has a particularly high number of claims in one year from their other customers and pays out several sizeable settlements to those people. If you file a claim of your own later in the year, it’s possible there may be no money left to defend or settle your claim. With an individual aggregate policy, the policy limits are available to you (and you only) for the entire policy year. 

Occurrence Policy Vs. Claims-Made Policy

The type of policy you carry determines whether you’re protected when a claim is filed months or years after an incident.  

Claims-made coverage requires claims to be reported while your policy is in effect. If your policy has expired and someone makes a claim against you (even though you had insurance at the time of the incident), you will have no insurance coverage because your policy has lapsed.  

Occurrence policy is coverage that continues for incidents that occur while you were insured, even if a claim is filed at a later date when your policy has lapsed. With occurrence policy coverage, should you have a claim filed months later, even if your policy isn’t current, it will provide liability coverage for a covered claim.   

FAQs

Do estheticians need professional liability insurance? 

Yes. Professional liability insurance is essential for estheticians because it helps protect you if a client claims they were harmed by a service you provided, such as a chemical peel, waxing treatment, or advanced modality. Even when you follow protocols and obtain informed consent, claims can still happen, making coverage a vital part of protecting your license.  

What’s the difference between professional liability and general liability insurance? 

Professional liability insurance covers claims related to the services you perform, such as treatment errors, adverse reactions, or failure to meet professional standards.  

General liability insurance covers non-treatment related incidents like a client slipping in your treatment room, or property damage. Most estheticians need both types of coverage for comprehensive coverage.