Cosmetologists professional liability insurance is another name for Errors and Omissions insurance (E & O). This coverage is specifically designed to protect you legally and financially if a customer files a lawsuit against you that claims you made a professional mistake. Whether you actually did make a mistake or not is beside the point. When lawsuits are filed, you will have to pay for your legal defense and you will lose income from the time that you spend away from work while dealing with the legal claims.
If, for example, a movie actress claims that your cosmetology services caused her to look twenty pounds heavier in her last movie, she may sue you for lost wages because she was unable to get the next part she wanted. Even if you made no mistakes with the services you rendered, you will have to pay for your legal defenses and associated costs out of pocket. With cosmetologists professional liability insurance, your coverage will absorb those expenses for you.
Depending upon the specifics of your policy, cosmetologists professional liability insurance pays for the cost of your legal defenses. It also pays you for time off work while dealing with the claims, and it pays settlements or awards to your clients when warranted.