Estheticians & Nail Salons Insurance Ontario
What You Need to Know About Estheticians & Nail Salons Insurance
It’s your ability and talent as an esthetician and nail technician to blend creativity and expertise that yields extremely therapeutic results and your on-demand services. However, because of how hands-on your job is, there is always a risk that you might be held responsible for any injury or loss brought on by your services. As such, commercial insurance is crucial to the survival of your business, whether you manage your own beauty business or offer aesthetic services at a salon.
Insurance Coverage Options
The key to effective estheticians & nail salons insurance is creating a strategy that provides precisely the level of security that your business requires. Since every business is different, you should carefully weigh a variety of coverages as you put together your specialized insurance plan. You should have confidence knowing that your business is safe, no matter what size of business you run.
What is estheticians & nail salons insurance?
In essence, estheticians & nail salon insurance is a portfolio of coverages designed especially for estheticians and nail technicians to safeguard their business against risks unique to the industry, such as losses, accidents, negligence, and damage. It protects against hazards associated with providing skin care and body treatments, such as tool and treatment-related accidents and injuries.
What type of insurance coverage do estheticians & nail salons need?
Commercial General Liability Insurance
With this coverage, you are protected from lawsuits brought by third parties alleging physical injury or property damage while at your place of work (such as an office or salon). It helps pay for things like medical expenses and legal defence. This insurance also covers reputation and advertising damages (e.g., slander, libel, copyright infringement).
A subset of professional liability insurance, malpractice insurance covers negligence, misconduct, or failure to provide a service as advertised. If a customer feels the service you provided didn’t produce the desired outcomes, they may choose to file a lawsuit. Legal costs and other expenses, such as court payouts or damages, may be covered by malpractice insurance.
Commercial Property Insurance
Your salon and the items inside it (such as furniture, equipment, supplies, etc.) are protected by commercial property insurance, which helps cover financial losses resulting from such risks as:
- Property damage due to natural disasters, flood, fire, vandalism or theft.
- Property damage or theft of electronics, equipment, company documents or employees’ personal belongings.
- Inventory theft by employees.
As an added benefit of commercial property insurance, you can expand your policy to include business interruption. It helps to reduce recurring costs like bills, employees’ wages, etc., during a time of lost income if you become ill or injured and must temporarily close your business.
Product Liability Insurance
Clients frequently purchase beauty products from estheticians and nail salons. You can be subject to legal action if a client buys a new skincare product that damages their skin. With product liability insurance, you are shielded from customer lawsuits that claim one of your manufactured, distributed, or sold products resulted in damaged property or bodily harm.
What other coverages should you consider adding to your insurance policy?
If your customers’ personal information is stolen or released as a result of a data breach, cyber and privacy liability insurance can protect your company by paying for damages and legal claims.
Equipment Breakdown Insurance
In order to provide their services, a lot of specialists in the beauty sector often use expensive equipment like tanning beds and laser devices. Your everyday activities and overall business could be negatively impacted if your equipment were to suddenly fail. Your equipment is covered by equipment breakdown insurance, which assists with the costs of machinery repair and replacement.
Business Insurance – Home-Based
Some estheticians and nail technicians choose to work out of their homes instead of renting a spot in a salon. To do so, you must notify your insurance provider if you operate your business from home rather than a separate workplace, such as a salon or barbershop. Even if they take place within the home, business-related mishaps or losses are not generally covered by standard home insurance.
Auto Insurance – Business Use
Sometimes estheticians and nail technicians don’t have a physical office; instead, they travel to their clients at home. And other times, they do both (work at a salon but also travel to clients!). These estheticians and nail technicians must inform their auto insurance company that they will also be driving their vehicle for work-related reasons, as standard auto insurance doesn’t cover commercial use.
Employment Practices Liability Insurance
This policy is beneficial if you own your own salon. With the help of this policy, your company will be protected from claims and legal action brought by employees who believe their rights have been infringed upon. You are protected from work-related claims such as, but not limited to, the following:
- Wrongful termination
- Gender issues
- Sexual harassment
- Violations of leave laws
- Performance review/promotion disputes
Why do estheticians & nail salons need insurance?
The first benefit is that it protects your salon and its contents by covering insured losses like fire, theft, vandalism, and water damage. Another advantage is that it protects you and your salon from legal action.
For example, suppose a customer were to slip while walking in your salon, fall, and injure themselves. In that case, they could decide to file a lawsuit against the business for medical expenses or loss of income if they cannot work due to the injury. Another example could be if an aesthetician advised a client on a product to use, such as a new facial cream or body wrap, but the product ultimately burnt the client’s skin, the aesthetician could suddenly find themselves facing a lawsuit.
Both legal actions and building repairs can be very pricey. If you were forced to pay for them out of your own pocket, it might cause financial ruin and even the unfortunate closure of your salon.