Estheticians & Nail Salons Insurance

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).

Malpractice Insurance

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?

Cyber Insurance

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
  • Discrimination
  • Gender issues
  • Sexual harassment
  • Violations of leave laws
  • Accessibility 
  • 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.

What factors influence estheticians & nail salons premiums?

The cost of your insurance rates is influenced by a wide range of factors. Your insurance provider will take into account the following criteria when determining your premium rates:

  • Your previous insurance claims history
  • Your annual and projected revenue
  • The type of services you offer
  • The number of employees you have
  • The location of your salon
  • The amount of experience you have

How much does estheticians & nail salons insurance cost?

There isn’t a standard rate for estheticians & nail salons insurance because there are many variables insurance companies need to take into account. The following are some of these variables:

  • How many employees you have
  • What services you provide
  • Your annual and projected revenue
  • How much training you/your employees have
  • How much experience you/your employees have

Is estheticians & nail salons insurance mandatory?

In the province of Ontario, general liability insurance is a requirement for all businesses. Nevertheless, general liability insurance alone is insufficient to shield estheticians & nail salons from legal action. It doesn’t matter how much care is taken to avoid them—slips and falls will happen. Additionally, if a client claims a nail technician significantly damaged their nails and/or cuticles due to negligence, they have the right to sue. So even if only general liability insurance is needed, having a dedicated estheticians & nail salon insurance policy can protect your company from the possibility of going out of business.

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Specialization, location, and extra services (e.g., permanent cosmetics, microdermabrasion) can all make it difficult to find full coverage for your beauty business. As your local insurance heroes, let us review your salon’s unique requirements to help you get the best estheticians & nail salons insurance possible!

For reliable, affordable Ontario estheticians & nail salons insurance, please request a quote online or call us at 1-855-777-4376. Our team of insurance heroes is happy to answer any questions you have!