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Estheticians face a variety of unique risks on the job. To protect yourself from potential client lawsuits, having esthetician insurance is valuable. An esthetician insurance policy protects you legally and financially if a client sues you for covered situations such as a product causing a bad skin reaction, someone slipping and falling while at your business, or someone causing property damage.
Esthetician insurance is available from some large, well-known insurance carriers, but it’s also sold through specialty providers. To help you find the best esthetician insurance companies, we evaluated a variety of providers based on financial stability, customer complaints, types of coverage available, maximum coverage limits, billing options, and more.
Best Overall : NACAMS
Excellent financial strength
Very few complaints
Sells occurrence-based policies
Full-time and part-time coverage available
Doesn’t offer business personal property insurance
Two-year limit on certain claims
No additional coverages like auto and workers’ compensation
Based on our in-depth reviews and comparisons of multiple carriers, we determined the best esthetician insurance company overall is the National Association of Complementary and Alternative Medicines (NACAMS).
Arch Specialty Insurance underwrites NACAMS’s esthetician insurance policies. Arch’s financial strength was rated A+ (Superior) by AM Best. It also has very few customer complaints for its size, according to the National Association of Insurance Commissioners (NAIC) Complaint Index.
The company’s esthetician insurance policies include $2 million of coverage per occurrence and a $3 million aggregate limit for general liability and professional liability insurance. There is a $2 million limit for product liability insurance, as well as coverage for identity theft, stolen business property, and rental damage. NACAMS sells policies for part-time and full-time estheticians that include the same amount of coverage.
NACAMS is one of the few companies we reviewed that sells occurrence policies, which cover incidents that happen while your policy is in force, regardless of when the claim is filed. If your policy expires, you can still file a claim for an incident that occurred during the policy period. However, NACAMS only allows product or professional liability claims within two years after your policy expires.
Although we named NACAMS as the best esthetician insurance company overall, its coverage is somewhat limited compared to other companies we looked at. For example, NACAMS doesn’t offer commercial car insurance or workers' compensation, both of which are offered by several other companies on this list.
Runner Up : ASCP
High aggregate coverage limit
No-cost additional insured endorsements
Sells Advanced Modality Insurance (AMI)
More expensive premiums
Lowest AM Best rating among top insurers
Associated Skin Care Professionals (ASCP) is our runner-up for best esthetician insurance.
ASCP has a few standout strengths that made it rank highly. First, its aggregate coverage limits are higher than most of the insurers on this list. Policies include $2 million per occurrence and $6 million aggregate limits for general liability, product liability, and professional liability insurance. You can also get business property insurance as an endorsement with coverage limits of $10,000 or $25,000.
Like NACAMS, ASCP’s esthetician insurance is an occurrence policy, which can provide additional peace of mind. It’s also one of the few companies we came across that allows you to add additional insureds for no cost (many other insurance providers charge a fee for every additional insured you add).
If you’re a current ASCP member and perform advanced services, like microblading, laser hair removal, or body contouring, you may be eligible for Advanced Modality Insurance (AMI), a supplement to the basic ASCP liability policy. There are two tiers of AMI coverage available, and the cost depends on the specific services you are providing.
The company’s drawbacks are that it has high premiums compared to other insurers we reviewed, and the A- (Excellent) rating that AM Best Gives ASCP’s underwriter (Allied Professionals Insurance Company) is tied with Next’s underwriter for the lowest grade on this list.
Best for Comprehensive Coverage : The Hartford
Offers other policies that can be beneficial for estheticians
Good variety of billing options
Reputable provider with excellent financial strength
Monthly interest fee if you don’t pay in full
Not available in Hawaii or Alaska
Of the providers we reviewed, The Hartford is one of our top recommendations for salon or spa owners who want reliable coverage across multiple insurance lines. The Hartford has been in business for more than 200 years and has an A+ (Superior) financial strength rating, making it a reputable provider.
You can get an esthetician's business owners policy (BOP) from The Hartford with up to $2 million per occurrence and $4 million aggregate. In addition, you can add workers’ compensation, commercial auto insurance, and cyber liability insurance to your BOP for additional protection.
Another thing we like about The Hartford is that the billing options are flexible. You can pay your premium once a year, twice a year, quarterly, in 10 monthly payments, or in 12 monthly payments. The downside is that, unless you pay upfront and in full, The Hartford charges you a monthly interest fee.
You can purchase esthetician insurance from The Hartford in all states but Alaska and Hawaii, so it may be a good option for business owners who have spas or salons in multiple locations.
Best for Policy Management : Next
Digital policy management tools
Additional policies available for estheticians
Three tiers of coverage
Down payment required upfront
Lowest aggregate limit out of the companies we reviewed
Lowest financial strength rating of our top companies
Based on our review, we named Next the best esthetician insurance company for policy management because you can manage your account through an app. Next also offers multiple policy types and coverage levels.
Whether you need to view Certificates of Insurance (COIs), update your payment preferences, or file a claim, you can do so through the online customer portal or the Next mobile app. Plus, you can get a quote, apply, and purchase a policy online. If you have questions, you can use Next’s online chat feature to connect to an agent during business hours.
One of the unique features of Next is that it sells three tiers of esthetician insurance—Basic, Pro, and Pro Plus. Each tier includes commercial auto, general liability, workers’ compensation, and commercial property insurance, but the coverage limits depend on the tier. The Pro Plus package, which offers the most comprehensive coverage, has the following policy limits:
- Commercial auto: $1 million (combined single limit)
- General liability: $1 million (per occurrence/$2 million aggregate)
- Workers’ comp: $1 million (per incident)
- Commercial property: $25,000 (per occurrence)
In addition to these policies, you can add professional liability insurance to your policy for as low as $220 annually—the exact cost will depend on factors specific to your business.
Next’s tiered coverage structure gives you the flexibility to choose a policy that fits your budget However, the highest aggregate coverage limit available is $2 million, the lowest coverage limit of the insurance companies on this list. Additionally, Next’s AM Best rating is tied for the lowest rating among the top insurers.
Best for Cheapest Coverage : Insured Body Work
Most affordable premiums
Coverage is sold in all 50 states
Fixed rates for professional and student liability policies
Limited property insurance
No options for additional types of insurance for estheticians
Must pay in full upfront
If you want the cheapest esthetician insurance, Insured Body Work, also known as Beauty and Bodywork, is the provider to consider. Out of the best companies in our roundup, Insured Body Work has the lowest premiums. All esthetician insurance policies cost $96 and student liability policies cost $67. Like most of the other providers on this list, you can easily apply online.
An esthetician insurance policy from Insured Body Work includes $2 million per claim and a $3 million aggregate for general liability and professional liability, and a $3 million aggregate for products and completed operations insurance. Personal and advertising injury insurance is included at no cost, and you also get $300,000 in coverage for damage to premises rented to you.
While Insured Body Work’s esthetician insurance policy is fairly comprehensive, you have limited choices for other coverage. For example, you can add business property coverage but the maximum coverage limit is $2,000. Also, you can’t customize your policy with other coverages such as workers’ compensation or commercial auto insurance.
Another thing to know about Insured Body Work is that you must pay your entire premium upfront; there are no other billing options or payment plans available.
Best for Financial Strength : Three Insurance
Superior financial strength
High liability coverage limits
Several other policies available for estheticians
More complaints than expected
Can’t buy a policy online
Not available in all states
While many of our top-rated providers have good financial stability, Berkshire-Hathaway-backed Three Insurance has the highest rating, with an A++ (Superior) grade from AM Best. This indicates that Three Insurance is likely to pay claims and meet other policyholder obligations.
In addition to its excellent financial strength, Three Insurance also offers the highest coverage limits out of the best providers in our roundup, with up to $10 million in liability coverage. For comparison, ASCP has the second-highest coverage limit at $6 million.
Through Three Insurance, you can purchase several types of coverage, including general liability, commercial auto, cyber liability, workers’ compensation, commercial property, and employment practices liability insurance. You can choose your coverages and get a quote online, but you must work with an agent to purchase a policy.
One of the biggest drawbacks we found was the company’s high number of complaints. We pulled data from the NAIC Complaint Index database and determined that Three Insurance’s three-year complaint index average is 1.390, which means it has more complaints than expected for its size.
After reviewing multiple insurance companies using our comprehensive methodology, we determined that the best esthetician insurance company is NACAMS. The company has excellent financial strength, few customer complaints, and it’s one of two providers in our list that sells occurrence policies.
Although NACAMS is a strong esthetician insurance provider, its coverage limits are just average. If you need more than $2 million per-occurrence and $3 million aggregate to protect yourself and your business, we suggest ASCP, our runner-up, which offers up to $6 million in aggregate coverage, or Three Insurance, for maximum liability limits of $10 million.
When choosing an esthetician insurance company, comparing providers is an important part of the process. In the table below, you can see a side-by-side comparison of the six companies we reviewed based on some key features:
|NACAMS||ASCP||The Hartford||Next||Insured Body Work||Three Insurance|
|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||Yes, but with a low limit||Yes|
|Billing options||Monthly||Option of two, three, or four consecutive monthly payments||Annually, bi-annually, quarterly, 10 monthly payments, or 12 monthly payments (interest fee required unless paying in full)||Monthly, with two monthly premiums paid upfront||Premium due upfront||Monthly, but in some states you can pay for the entire year up front and receive a 5% discount|
|Aggregate limits||$3 million||$6 million||Varies||Varies||$3 million||$10 million|
What Is the Best Esthetician Insurance?
To find the best esthetician insurance, you should assess your personal insurance needs. Start by figuring out what types of coverage you need based on the nature of your business. For example, if you visit clients in their home, you should consider business auto insurance. You should also determine how much coverage you need based on the types of services you provide.
Price and payment options are important factors, too. Some insurance companies have cheaper rates than others and allow you to pay monthly instead of all at once. So, if paying the lowest price is your main priority, get a few quotes and compare them. If being able to spread out your payments is important, make sure you understand how the company’s premium payments work.
Don’t forget to pay attention to the reputability of each carrier you consider. The best companies are the ones that have excellent financial strength and few complaints from customers.
What Kind of Insurance Does an Esthetician Need?
The types of esthetician insurance you need will depend on your specific business. At a minimum, however, general liability and professional liability insurance are good policies to have, no matter what services you’re providing and how experienced you are.
If you own a spa or salon, you will probably need to purchase additional insurance coverage. For example, if you rent the space where your spa operates, your landlord may require you to have commercial property insurance. If your esthetician business has any employees on staff, you must legally carry workers’ compensation insurance in every state but Texas.
What Is Liability Coverage?
There are a few types of liability insurance that estheticians should consider—general liability insurance, professional liability insurance, and product liability insurance.
General liability insurance protects you financially if a client sues you for bodily injury, property damage, and personal injury. For example, if your client trips over a cord in your salon and twists their ankle, they could sue you for their injuries. Professional liability insurance, on the other hand, covers claims of negligence stemming from professional errors and malpractice.
Because estheticians use skincare products on clients, including chemicals and active ingredients, having product liability insurance is also important. This policy will protect you legally and financially if a client has a negative reaction to a product you used during a treatment, and you get sued.
How We Chose the Best Esthetician Insurance Companies
Narrowing down the best esthetician insurance companies requires extensive research and analysis. To formulate our selections for the best companies on this list, we reviewed 20 data points from the top esthetician insurance providers by premium, including:
- Financial strength
- Policy types and features
- Consumer complaints
- Online tools
- Billing options
- Coverage limits
Companies with high ratings from AM Best, low numbers of customer complaints from the NAIC, and occurrence-based coverage rather than claims-made coverage tended to rank higher than their competitors. Also, insurers that moved up our rankings tended to have high aggregate coverage limits, options to pay your premiums monthly, online applications, and property coverage. Here’s how we weighted customer-friendly features as we formulated our rankings:
- Types of coverage and features: 40%
- Financial stability: 20%
- Consumer complaints: 25%
- Online purchase: 10%
- Billing options: 5%
Additionally, we examined the specifics of esthetician policies each insurer offered to get a better understanding of how the policies could benefit business owners.