Insurance for spa owners

For many small spas and beauty shops, we recommend having two types of insurance for the best protection: professional liability and general liability insurance. Professional liability insurance, sometimes called errors and omissions insurance (E&O insurance), is insurance coverage for claims against businesses that provide professional and personal services – for beauty businesses like yours. 

Spa and beauty shop owners can empower themselves with an insurance plan from Hiscox. When is it important to have professional liability insurance? Examples include:

• Loss of personal information: A spa employee accidentally misplaces a file that contains sensitive client information. The information is compromised and the client sues the spa owner. Professional liability insurance may protect beauticians and cosmetologists against claims of negligence and loss of personally identifiable information.

• Bodily injury: A masseuse uses a new product on a client. The client has a severe allergic reaction to an ingredient in the product and is unable to return to her job for several weeks. She sues for emotional distress, bodily injury and loss of wages. Professional liability insurance could protect spa owners and beauticians against claims of negligence and will appoint an attorney to defend them if needed, even if they haven’t made a mistake.

Hiscox insurance agents understand the risks specific to businesses in the beauty industry and will ensure that you have the protection you need to feel more confident in treating customers.

Learn more about professional liability insurance.

If you own a spa or beauty shop, you may also want to consider a general liability insurance policy. General liability insurance, sometimes called Commercial General Liability (CGL), protects your business from another person or business’s claims of bodily injury, associated medical costs, and damage to property. 

Here are some industry-specific, real-world examples of when general liability insurance could protect your spa or beauty business:

• Bodily injury: A client gets up after a facial and trips and falls over a folded massage table. She faults the salon owner and sues for bodily injury as well as medical expenses. General liability could protect against such claims.

• Property damage: A facialist is visiting a client for an in-home treatment and accidentally knocks over a laptop, breaking it. General liability insurance could protect spa employees against third-party claims of property, bodily injury and related medical costs.

• Slander: A client overhears a spa employee making disparaging and untrue remarks about another client. When she learns of the conversation, the hurt customer sues the spa for slander. General liability insurance protects businesses against third-party claims of slander, property damage, bodily injury and associated medical costs.

Learn more about general liability insurance costs on our website or give us a call.