Best Esthetician Insurance Companies of 2022

  NACAMS ASCP  The Hartford  Next  Beauty & Bodywork  Three Insurance 
AM Best A+ A- A+ A-  A+ A++
Complaints  Far fewer than expected  Fewer than expected  Far fewer than expected  Far fewer than expected  Far fewer than expected  More than expected 
Property insurance  No  Yes  Yes  Yes  Limited  Yes 
Online purchase  Yes  Yes  Yes  Yes  Yes  No 
Billing options  Monthly  Quarterly  10 monthly payments  Monthly with two payments upfront  Annually  Monthly 
Aggregate limits  $3 million  $6 million  Varies  Varies  $3 million  $10 million 
Occurrence/Claims-made  Occurrence  Occurrence  Both  Both  Claims-made  Claims-made 

Occurrence form policies are preferred because they offer more protection. If a client were to bring a lawsuit against you after your policy expires, you wouldn’t be covered under a claims-made policy, even if the incident occurred while you had insurance coverage.

Frequently Asked Questions

What Is the Best Esthetician Insurance?

The best esthetician insurance for you will depend on your coverage needs. A good policy will include professional and general liability insurance, but you may also need additional coverage, such as commercial auto or business personal property coverage. When choosing an insurance company, make sure the coverage you need is offered. 

All else being equal, you should choose an occurrence form policy over a claims-made policy, since a claims-made policy can leave you vulnerable to lawsuits brought after your policy expires. But if you have budget concerns or need coverages not offered by occurrence form companies, you may ultimately select a claims-made policy. 

The best esthetician insurance for you will also depend on where you work and whether you have employees. Some policies follow you wherever you work, while others require a permanent business location. And if you have employees, you’ll likely need to choose a company that offers workers’ compensation insurance. 

What Kind of Insurance Does an Esthetician Need? 

General and professional liability insurance are essential for estheticians. If you own or rent equipment to provide your services, you’ll also want business personal property coverage. If you drive to your clients, you’ll need commercial auto coverage. And if you have employees, you’ll likely need workers’ compensation insurance. Business income insurance is also valuable to have—it covers lost income if you need to shut down operations for a covered reason—but it’s not absolutely necessary. 

What Is Liability Coverage?

Liability coverage helps cover legal fees and judgments against you as a result of a client lawsuit. Estheticians need two types of liability coverage—general liability and professional liability coverage. General liability insurance covers claims related to bodily injury or property damage that arise when you are providing your services. If a customer slipped and fell in your place of business because your floor was wet, their medical bills would be covered.

Professional liability insurance helps cover damages and legal fees associated with lawsuits related to negligence, misrepresentation, personal injury, or incorrect advice. So if a customer has an allergic reaction to a product you recommended, and they sue you for a related financial loss, your professional liability insurance would cover you. 

How We Chose the Best Esthetician Insurance Companies 

To determine the best insurance companies for estheticians, we collected 20 data points on the top esthetician insurance companies by premium. These data points include:

  • Financial strength
  • Cost
  • Policy types and features
  • Exclusions
  • Consumer complaints
  • Online tools
  • Billing options
  • Coverage limits

We gave preference to companies with top ratings from AM Best, a low rate of customer complaints, and those that offer coverage based on the date of the occurrence as opposed to when the claim was made. Companies with high aggregate coverage limits, monthly billing, low premiums, online purchase options, and those that offer property coverage got ratings boosts. To rank the companies we researched, we applied the following weights to each customer-focused category:

  • Types of coverage and features: 40% 
  • Financial stability: 20% 
  • Consumer complaints: 25%
  • Online purchase: 10%
  • Billing options: 5%

We delved further into product and company specifics to determine which companies were best for which types of consumers. Using this research, we determined which companies offer the best esthetician insurance.

About the author: AKDSEO

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