Personal Care, Beauty, and Cosmetology Insurance

If you’re a self-employed hairdresser or makeup artist, you might not be required by law to carry insurance. However, having coverage can help you fulfill the terms of a contract, such as renting a booth in a salon or barbershop. It also boosts your credibility and protects your business from financial risks in the event someone sues you.

Depending on your line of work, your state might require you to carry a professional liability insurance policy to provide specific beauty services or work at certain facilities. A type of cosmetology liability insurance, this policy covers lawsuits from clients who claim your services caused harm.

Your personal auto and health insurance policies likely won’t cover work-related incidents, such as a car collision involving a business-owned vehicle or an on-site work injury. That means you might have to pay hefty medical bills or state penalties for not having the proper insurance.

If you drive your own vehicle for work, you may want to consider hired and non-owned insurance (HNOA). And if you operate a mobile salon business with a company-owned van, you'll likely be required to carry commercial auto insurance.

Carrying a workers' compensation plan, even if you have no employees, can financially protect you if you're unable to work due to an on-the-job injury or illness, as well as cover your medical expenses.

Every state has licensing requirements for personal care providers, beauticians, and cosmetologists.

Most professional cosmetologists and beauty providers are required to complete schooling, such as cosmetology school, nail technician school, or esthetician school, before applying for a license. Some professions require additional licenses depending on the services you intend to offer.

In fact, a few states require a specific license if hairstylists offer braiding services. And to work as a nail technician, either as your own boss, at your own salon, or as a manicurist for someone else, you must obtain the proper license.

Failing to meet your state’s requirements and working without a license or certification could result in hefty fines from your state board of cosmetology or your local department of health.

Sharing customer photos on social media can be a great way to promote your business. People love to see the final outcome of your services, from shampooing to hair styling, waxing to skin care, and health care treatments.

However, sharing photos of your customers also comes with unique risks. You must get permission to use the photos on your website or social accounts.

Selfies are popular, and can give your business some organic social media attention. However, unless an image has a Creative Commons copyright, which is rare, you could face legal action if you share something that was taken by another person without their permission.

It’s essential to protect your business with social media insurance. Even a frivolous claim of invasion of privacy or copyright infringement can be financially devastating to defend.

Commercial general liability coverage typically protects against copyright and privacy issues, as well as advertising injuries if your business is forced to defend legal actions or pay a settlement.