Guide to Comparing Cosmetology Insurance Policies

Choosing a cosmetology insurance policy is a big decision that should not be taken lightly. Not all insurance providers are equal, so it’s pivotal to research before making your final decision. But where to begin? We’ve got you covered! 

We’ve developed this handy guide to help you know what to look for when you shop for cosmetology insurance. Here’s everything you need to know when researching a cosmetology insurance policy. 

Choosing a cosmetology insurance policy is a big decision that should not be taken lightly. Not all insurance providers are equal, so it’s pivotal to research before making your final decision. But where to begin? We’ve got you covered! 

We’ve developed this handy guide to help you know what to look for when you shop for cosmetology insurance. Here’s everything you need to know when researching a cosmetology insurance policy. 

What to Consider When Comparing Cosmetology Insurance

Liability insurance policies are rarely one-dimensional. When shopping for the best cosmetology insurance policy, you’ll likely have several important factors to consider. Of course, your highest priority issues may not be high on someone else’s list, and every company is different. Find a policy that fits your specific needs, and go from there. 

What factors should you consider, though? I'm glad you asked! The list below can be a great starting point. 

1. Coverage Limits

First and foremost, you’ll want to know the coverage limit within a policy. The coverage limit is how much an insurance company could pay after an incident. These numbers can vary widely between insurance providers. 

Coverage limits are typically divided into the per-occurrence limit and the annual aggregate (maximum). When shopping for liability insurance, be confident that our coverage limits will be sufficient for your business needs.

2. Coverage Area (location)

The coverage area may be a factor that eliminates several options from the outset. If a liability insurance provider doesn’t offer coverage in your area, you can scratch it off your list. On the other hand, you may not want to limit yourself to a provider that only covers your region/state. For those reasons, search for a company that offers portable coverage wherever you are. 

3. Services Covered

Naturally, you want to ensure that your liability insurance policy offers coverage for what you do. Cosmetology can encompass various services, requiring coverage for each. Be certain your policy includes protection for the services you provide. 

This is where your research will prove worth the time. The last thing you want is to discover too late that your policy won’t cover what you need. 

4. Policy Insurance Limits

Check your policy to ensure it offers the types of coverage you need. While every beauty professional may have individual coverage requirements, in general, look for a policy that includes: 

• Professional liability coverage
• General liability protection
• Personal injury & Advertising liability coverage
• Portable coverage
• Member benefits
• Additional coverage

These policy provisions can help you determine if a policy is the right fit for you. Try to find a policy that includes these provisions without adding hidden or additional fees. 

5. Benefits and Extras

While the benefits may not be your first priority, they can make or break a policy. A decent beauty insurance policy will include many additives that sweeten the deal. Whether you’re all about the benefits or view them as a nice bonus, it’s important to check out what a company offers its members in the perks package. 

6. Additional Coverage

Additional coverage factors may add to a policy’s overall value. Whether it’s affordable additional business coverage, instant activation, or identity theft protection, the additional coverages within a policy should influence your decision. 

Of course, be aware of insurance providers that only offer additional coverage for outrageous fees or significant costs. While an a la carte insurance plan may sound enticing, the extra fees can add up before you know it. 

Liability Insurance Factors to Consider

In addition to the coverage itself, there are other factors to consider before signing with a beauty insurance provider. These considerations are not necessarily the coverage or policy itself but all the surrounding aspects that impact an insurance company’s value to its policyholders. 

These peripheral issues may require you to think outside the box while you research the best insurance policy for cosmetologists. Trust us, though; you will thank us for bringing them to your attention. 

Policy Exclusions

Just as important as what a policy covers is what it does not. The policy exclusions may eliminate a provider or two from the beginning. After all, the purpose of insurance is to protect you from liabilities. If an insurance provider does not offer the coverage you need, you should not consider it for your primary provider. 

While the exclusions may be tough to find, locating and reading the policy exclusions is well worth it. 

Deductibles

The deductibles may seriously impact your financial planning and monthly expenses. Ensure your policy is open and transparent about the deductibles and potential costs. While making your risk assessment, ensure your deductibles align with your individual needs and budget. 

Premium Costs

Honestly, the premium cost (or annual cost) is likely one of your top considerations. To determine whether it’s worth it, check out other factors like the coverage limits, customer service rating to help you make an informed decision. When you shop for beauty insurance, be certain your policy won’t break the bank and be wary of additional fees for new services, hidden costs, etc. 

Claims Process

Some insurance providers' claims processes can be nightmares. Avoid companies with a reputation for making the claims process difficult for their policyholders. Again, you may have to do some hefty digging to find how a company handles claims, but this research can save you a headache later on. 

Customer Reviews

Customer reviews on a company can be invaluable as you search for the best liability insurance policy for cosmetologists. Discover what real members have experienced and learn how a company treats them. Remember, as you research, a company with few or several negative reviews can be a red flag warning. Look for a provider that has a good number of positive reviews. 

What You Get with NACAMS

Since you’re here, you might as well research and learn what NACAMS offers its members for cosmetology insurance. Here’s everything you get with a NACAMS cosmetology liability insurance policy. 

Professional & General Liability Coverage

We offer protection for errors and omission liability claims AKA professional liability insurance or malpractice that may arise in your profession as a cosmetologist. This coverage could protect you if you’re accused of causing harm or damages due to a professional error. Our policy offers up to $2 million per occurrence with an annual aggregate of $3 million. 

General liability insurance can protect you against general liability claims, like injuries and damages from a slip or fall. These risky situations could occur in any profession, not just cosmetology. Our policy includes up to $2 million per occurrence and an annual maximum of $3 million for general liability claims. 

Occurrence Form Coverage

Our policy can protect you even after your policy expires with occurrence form coverage. This type of protection defends against claims related to incidents that occur during the life of your policy, even if the claim is filed after the policy expires. In other words, as long as an incident occurs while the policy is in effect, you can still be eligible for coverage years later.

Personal Injury & Advertising Liability Protection

This coverage can protect you if you’re accused of non-physical harm or damages, like slander or libel. As cosmetologists grow their client base, they may find this coverage all the more essential. Our policy offers up to $2 million for personal injury & advertising liability claims. 

Identity Theft Defense

Your information privacy is more important than ever. Your online presence could be linked to your business finances, payroll, and other sensitive information. Our policy offers $25,000 of identity theft protection to help protect you if your identity is compromised. 

Portable, Nationwide Coverage

If you live and operate within the United States, finding your coverage area with NACAMS is simple. Spoiler alert: it’s the whole country. Your coverage follows you wherever you go throughout the USA, even if you move across state lines for a new opportunity.

Instantaneous Certificate of Insurance

Your coverage with NACAMS begins the moment you purchase a policy. You’ll receive proof of coverage immediately, so you can return to work in a flash. This means no quotes or having to speak with an insurance agent to get an active policy. 

Exclusive Member Benefits

We roll out the red carpet for our members and provide a wealth of member benefits. You’ll have access to exclusive discounts, services, and resources that make your life much sweeter. Our curated benefits package is designed just for beauty professionals and supplies perks galore! 

Simplified Claims Process

We offer simplified claim filing for your convenience. The process may look like these five simple steps:  

1. Login into the member portal 
2. Call to speak with a representative
3. The representative will document the claim details
4. We will research the claim details
5. Determine the claim's validity and coverage payout

It’s really that easy to file a claim with NACAMS. 

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