Like most beauty professionals, you already figured there’s a certain level of risk that comes with the services you provide. But what may be confusing, especially if you’re new in this line of work, is the type of liability insurance you need.
Professional liability and general liability insurance are two common coverage options that can protect your work in meaningful ways, but they don’t cover the same types of risks. If you’re comparing professional liability insurance vs. general liability insurance, here’s everything you need to know.
Key Takeaways
You can’t predict every situation that may come up while running your beauty business, but you can take steps to prepare for the unexpected. One way to do that is to have the right liability coverage.
What Is Professional Liability Insurance?
As with nearly any hands-on service, errors and mistakes are nearly impossible to rule out. Even when you give professional advice or do everything you can to provide a good service, things might not work out as expected and could result in a claim or lawsuit.
Professional liability insurance is a type of coverage that helps protect you when a client claims that your professional services caused them harm. This can include claims that your advice or service caused an injury or that you made an error in the course of your work. Depending on your policy, this coverage may help with certain legal and defense costs associated with a covered claim.
What Is General Liability Insurance?
Everyday accidents that happen in your workspace or because of your operations are another type of risk you may face as a beauty pro. And while they aren’t necessarily related to the services you provide, you still need coverage for them.
General liability insurance is a type of coverage that helps protect you when a client holds your business responsible for an accident or injury that isn’t directly related to the professional services you provide. This can include situations where a client gets injured in your workspace or has an accident while visiting your business. The policy may also help cover the legal costs of defending against a covered claim, depending on your policy.
Professional Liability Insurance vs. General Liability Insurance: What’s the Difference?
The main difference between professional liability insurance and general liability insurance comes down to what caused the claim.
With professional liability, coverage is triggered by what you do for a client, whether that involves providing a service, giving professional advice, or exercising your judgment. On the other hand, general liability comes into play based on what happens around your business.
It’s easy to overlook that distinction and assume that just one type of liability insurance is enough to cover all potential claims. But in the real world, you can face both types of risks during your work as a beauty professional. In other words, having one type of coverage doesn’t necessarily protect you against every type of claim.
General Liability vs. Professional Liability: Claim Examples
One of the easiest ways to understand the difference between these two types of coverage is to see how they might come up in real-life situations.
Scenario 1: Something Goes Wrong During an Appointment
Say a client arrives for an appointment and something goes wrong (for example, they get injured) because of an issue in your workspace that has nothing to do with the service you’re providing. The fact that they were there for an appointment doesn’t automatically make it a professional liability claim. In this situation, the claim may fall under general liability because the problem comes from what happened around your business rather than the service itself.
Now, imagine that same client experiences a problem while you’re performing the service. If they claim it happened because of the way you provided the service, you could be looking at a professional liability issue.
Scenario 2: A Client Isn’t Happy With the Result
A client books an appointment after getting your professional advice about which treatment would be right for them. After the appointment, they believe your recommendation or the service you provided caused them harm and decide to pursue a claim.
Because the complaint is connected to your professional advice or the service itself, this is the type of situation professional liability coverage may address.
Here’s the key takeaway: the type of liability you’re dealing with comes down to what caused the claim. Two clients could have problems during an appointment, but you could be looking at different types of liability depending on what caused the problem.
Do Beauty Professionals Need General Liability and Professional Liability Insurance?
While these two coverage types address different risks, general and professional liability aren’t competing alternatives. Of course, you can choose a single type of coverage for your beauty business, but having only one type could leave gaps depending on the circumstances of a claim.
You can’t choose the type of risk you face when you work directly with clients or provide beauty services, advice, or recommendations. For this reason, many beauty pros end up choosing coverage that includes both professional and general liability insurance.
Beauty Insurance Plus offers an insurance policy that combines professional and general liability coverage, with limits of $2 million per occurrence and $3 million per year.
Protect Your Beauty Career With the Right Liability Coverage
You can’t predict every situation that may come up while running your beauty business, but you can take steps to prepare for the unexpected. One way to do that is to have the right liability coverage.
With Beauty Insurance Plus, getting covered is quick and easy. You can purchase your policy online, get instant coverage, and receive your certificate of insurance right away.
Ready to protect your beauty business? Explore Beauty Liability Insurance from Beauty Insurance Plus and get covered today.
To learn more about important beauty business insights, including general liability and professional liability insurance, be sure to subscribe to Beauty Insurance Plus. You can also find industry trends, business tips, and more by visiting our blog.
