Insurance Guide for Cosmetology Insurance
Understand the world of cosmetology liability insurance.
We want you to have peace of mind knowing that you have the right cosmetology insurance for your work. This cosmetology insurance guide will help you navigate the who, what, where and why of liability insurance. Whether you’re looking for barber insurance, hair stylist insurance, booth renter’s insurance or makeup artist insurance, Alternative Balance has the information you need to choose the right cosmetology insurance.
Do I need insurance for cosmetology services if I rent a booth or a chair in someone’s salon?
We recommend that independent contractor/self-employed professionals have their own cosmetology insurance. Since most salon owners who rent booths do not provide insurance for independent contractors, you could be risking your income and professional reputation by not having your own insurance for hair styling, makeup application, barber services or other cosmetology services when renting a booth.
When should I buy cosmetology liability insurance?
The first reason you may need to buy cosmetology insurance is because you are required to. Many locations request that you carry your own liability insurance coverage if you are self-employed even before you start working at their location. To fully protect your work, you should consider buying cosmetology insurance when you are:
1) Actively pursuing a location for your cosmetology services;
2) Currently at a location providing cosmetology services; or
3) A cosmetology student being trained and waiting for your license.
All these situations are prime examples of when you would need to purchase cosmetology insurance, hair stylist insurance, barber insurance, or makeup artist insurance.
Where can I find the best rates for cosmetology insurance?
The lowest cost for cosmetology liability insurance will come from national associations or groups. When an association like the Alternative Balance Professional Group works with insurance carriers, the large numbers of professionals in the association allow the carrier to offer lower rates and the flexibility to cover all 50 states or worldwide (Alternative Balance coverage protects you working worldwide).
To save even more money, be part of an association that covers several services on one plan and that offers part-time discounted rates. For example, if you are a hair stylist and a yoga instructor, the right professional group will be able to cover both services for one price on one policy.
Also, check with the association to see if they offer price match programs or if they can lock in your rate for as long as you are a member so your rates do not increase.
What type of liability insurance I should have?
The most common types of liability coverage for a cosmetologist are professional and general liability.
Professional liability, also known as malpractice insurance, protects you and your business for loss or expenses resulting from claims of professional errors, mistakes, or failure to perform professional duties committed or alleged to have been committed by the insured in his or her professional activities.
General liability is a form of insurance designed to protect practitioners from liability exposures arising out of accidents occurring on the premises, such as if a visitor slips and falls or if they trip on a cord.
How much insurance coverage should I have?
The most common cosmetology insurance plans include professional and general liability coverage of $2-3 million annual aggregate with $1-2 million per occurrence. Most policies are either occurrence or claim-based policies, whereas some have a combination where general liability is occurrence and professional liability is claims made.
What is “occurrence” coverage?
Occurrence coverage is insurance that pays claims arising out of incidents that occur during the policy term, even if the claim is filed years later or if the policy is no longer in effect.
What is “claims made” coverage?
Claims made coverage is insurance that provides liability coverage only if a claim is made during the policy period or any applicable extended reporting period.
How quickly can I get insurance coverage and proof of insurance?
If purchased online, most association applications are approved instantly or in as little as 2-3 business days. Several associations do not offer same-day processing by phone or mail, so check with the association’s representatives about how long it may take if you choose this method.
Alternative Balance memberships and insurance are effective instantly online upon payment. You have immediate access to your policy documents and all our exclusive member benefits.
How do I know if the insurance carrier is stable and legitimate?
You can review the rating of any insurance carrier by visiting rating agencies such as A.M. Best Company, Standard & Poor’s, or Weiss Ratings. Look for an “A” rating or better and financial stability.
Your Alternative Balance membership includes insurance coverage for:
• Independent hair stylist insurance
• Barber insurance
• Esthetician insurance
• Hair salon liability insurance
• Cosmetologist insurance
• Makeup artist insurance
• And many more!