Aggregate and occurrence limits. Personal and advertising coverage. Tools and equipment coverage. These and other insurance terms can be difficult to understand, but we’re here to explain in detail everything that is included in a Beauty and Bodywork Professional Liability Insurance policy. This will be your go-to guide if you ever have any questions about what is included in our professional liability policy.
Why Insurance?
According to Webster’s Dictionary, insurance is “coverage by contract whereby one party undertakes to indemnify or guarantee another against loss by a specified contingency or peril.” Put simply, insurance is the transfer of risk.
Whether you’re an acupuncturist, a massage therapist, a cosmetologist, or other beauty professional, you face risks everyday and you could be held liable for any accident that happens. Insurance coverage protects you so that you don’t end up paying hefty out-of-pocket expenses, and also protects your company from accidents, lawsuits, and third-party claims.
Common Beauty Claims
As a beauty professional, it is important to be aware of common claims and the potential risks you face every day on the job. For massage therapists, a common claim is their massage table breaking while their client is on it. For cosmetologists, their clients can be allergic to eyelash glue or makeup, leading to a reaction. Maybe you’re a nail technician that didn’t thoroughly sanitize your tools, leading to an infection in your client’s nails. You can be held accountable for any harm or damage done to your client whether it occurs during the appointment or after.
General Liability Coverage
General liability insurance protects you against lawsuits and property damages. Some common general liability claims are damage to client’s household possessions or home if you are an in-home beauty professional. We also commonly see slip-and-fall accidents and data loss claims (which we’ll cover later.)
Professional Liability Coverage
Malpractice is a form of professional liability insurance that specifically protects you against clients who file claims against you under the complaint that they were injured or harmed by your negligence while you were providing your service. This means that you either did something incorrectly, or you failed to do something that you should have done.
Professional liability coverage offers you:
- Damages and claims from a negligent act
- Error or omission in performing a service
- Failure to render professional services
Product Liability Coverage
If you’re a beauty professional that sells or recommends beauty products in your salon to your clients, there is a risk for product liability insurance claims. Check out Insurance Canopy to add this essential coverage to your business, while this won’t be part of your BBI policy, you will be better prepared to sell products to customers. Make sure you’re aware of common risks and that you’re properly trained so you can do your best to avoid claims and protect your beauty business.
Policy Coverage
Aggregates and Occurrences
BBI’s general and professional liability policies include coverage for $3 million per policy term, with a $2 million limit per occurrence. This means that if a client attempts to sue you, your insurance policy will cover up to $2 million per claim. The aggregate limit means that BBI will cover up to $3 million for any amount of claims that you may have in a 12-month period. This limit is for bodily injury and property damage claims that you become legally obligated to pay.
Completed Operations Aggregate
The products and completed operations aggregate is the maximum amount that will be paid out for property damage claims or bodily injury that result from your products that you use during your service. The products that you sell, however, are not included in this coverage. This limit on a BBI policy is $3,000,000.
Personal and Advertising Injury Coverage
This type of coverage—personal and advertising injury—includes several coverages:
- Claims of false arrest
- Detention or imprisonment
- Malicious prosecution
- Violations of the right to privacy
- Oral or written material which harms or damages one’s reputation
This part of the policy also provides coverage for claims of false advertising or for stealing someone else’s logo, idea, or other intellectual property. This is included in the basic professional liability policy.
Damage to Premises Rented
Damage to premises rented means that if you rent a salon, a booth at a salon, or any other space, you would have coverage in the event of a fire or other damage. The best part is that the coverage applies to you regardless of cause, for spaces occupied by you for seven or less days when you are legally liable for the damages. The limit on a beauty professional insurance policy is $300,000—this is included in all professional liability policies.
Additional Insureds and Tools & Equipment
You also have the option to add additional insureds to your policy for $30. This means that you can add property management or HOA’s to your insurance policy so they can receive protection if they are named in a suit due to a covered business-related loss or claim you have caused.
An optional coverage that you can add to your policy is tools and equipment coverage. By adding this to your policy, you are adding protection to your tools in case anything gets damaged or stolen. We offer multiple aggregate limit options for this coverage (up to $10,000 per policy period!), and pricing starts at only $2/month.
Medical Expenses
Medical expense coverage is also included in each professional liability policy. This coverage guarantees you won’t be responsible for out-of-pocket expenses for any injury that takes place while you are performing your work. This part of your coverage would cover up to $5,000, regardless of who is at fault in medical expenses. Any additional coverage beyond this would come from the General Liability Limits part of the policy, after an adjuster has a chance to investigate the claim.
Endorsements
Cupping, Fitness Trainer, Acupuncture, Micro-Current
BBI offers the option to add endorsements to your policy at an additional cost. These endorsements are for cupping, fitness trainers, acupuncture, and micro-current. For example, if you’re a massage therapist that plans on giving any sort of diet or exercise counsel, you will need the fitness trainer endorsement.
Cyber Liability Insurance
Although Cyber Liability Insurance is a policy and not an endorsement, it is additional coverage that you can add to your base policy if you’d like. Cyber liability insurance was designed to protect you and your data in the event of cyber crime. If you store any sort of customer information such as names, addresses, or credit card/payment information, you’ll want to add this coverage to your base policy. Cyber liability insurance is available for $79 per year. This will give you peace of mind and coverage in case your business accounts are hacked or information is compromised.
Contact Beauty and Bodywork Insurance
At BBI understand that insurance jargon can be a lot to take in, so we’re here to help! BBI has licensed insurance agents ready to assist you with any questions or concerns you may have—available by phone or chat.
Put your trust in BBI to be your beauty professional insurance provider so you can do what you love with confidence. Visit our website to learn more about our professional liability policies and to customize your insurance policy to fit your business’ needs.
