INDIVIDUAL BEAUTICIAN/BARBER PROFESSIONAL LIABILITY COVERAGE
(May 2022)
Individual
Practitioner Policy
This specialized policy is available from a limited number of underwriters or program administrators for beauticians or barbers who are individual operators/practitioners and are any of the following:
· Employees of salons or shops whose employers require that they arrange their own professional liability insurance or who want the overall high limits of protection afforded by their own coverage in addition to that provided by the employer
· Independent contractors who work alone or generally operate in facilities under lease arrangements with large salons or shops
· Beauticians or barbers who work for several salons or shops at the same time and cannot depend on employer-provided coverage for all circumstances
· Recent beauty school graduates who are qualified but not yet established and want continuity of protection for whatever exposures they encounter
Special
Features
A major advantage of individual practitioner’s professional liability insurance is that it follows the insured in spite of job changes, new employers, and whether or not an employer provides insurance. If the policyholder arranges for the precise amount and type of coverage that fits his or her services, there is less concern about the scope of insurance provided by an employer or whether it is maintained.
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Example: Josette, an independent beautician, has operated from space provided by the owner of Beautique, for nearly two years. Josette has her own insurance coverage but is also listed on Beautique’s beautician professional liability policy. She is sued by a Beautique customer. The customer alleges that she was seriously injured after a series of non-invasive, cellulite reduction treatments. |
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Scenario 1: Beautique’s Insurance carrier denies the claim since the service involved in the claim was not among the ones covered by the shop’s policy. Josette’s independent coverage will solely respond to the claim. |
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Scenario 2: Beautique’s Insurance carrier looks into the claim and agrees that the service involved in the claim is eligible for coverage. However, since the claim for damages is very large, the shop’s insurer notifies the carrier of Josette’s independent coverage that it may be involved on either a proportional or excess basis. |
Underwriting and Rating
Insurance is written subject to the completion of an application by the individual and its acceptance by the underwriter. Training, years in business, previous insurance and loss experience are pertinent. The services performed must be specified with care, as the applicant's statements are the basis for issuance of a policy. In most cases, an additional insured may be added, when warranted.
Limits of liability ranging from $100,000 to $1 million generally are available. An additional charge, such as 10% of the premium otherwise developed, is made if an additional insured is included.
Beautician/Independent
Contractors Agreement
Beauty facilities
that make use of independent employees use agreements that establish the
parameters of the working relationship. Insurance coverage is a major part of
such agreements, but other elements are also involved and are just as
important. The following is a sample of what may be used by a given facility.
Agreement
On (Fill in Day,
Month, Year), (fill in facility name), located at (fill in address) will
permit (fill in independent contractor name) use of its facilities and
equipment. This use is contingent upon the captioned contractor meeting all
obligations in this agreement. Note: A contact is likely to have several requirements listed in this area
such as:
Failure to comply
with all of the items listed above will result in this agreement’s
termination. At that time the contractor is to leave the premises. Authorized
Facility Signature and Date Contractor
Signature and Date |