Teeth Whitening Business Insurance – Cost and Policies

Offering teeth whitening services means you are dealing directly with the public.

That means you should start with the appropriate teeth whitening businesses insurance to protect you from all possible claims.

Having insurance in place from the start is the smart way to go because the potential risks far outweigh the modest costs of primary insurance.

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Starting your own teeth whitening business is an excellent choice because it represents low investment and high-profit margins.

But, you have to understand the basics of the business risks that any face-to-face interaction with the public and with your customers means.

Teeth Whitening Businesses Insurance

A Beginner’s Guide on how to Start your own Teeth Whitening Business?

Most people believe that having a gleaming smile is a valuable social asset.

When you can deliver high-quality teeth whitening services and products, then you can find yourself on the way to establishing a business that is easy, affordable, and in high demand. 

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Already, the level of sales was estimated pre-pandemic to exceed $3 billion.

Now, as the public has become more image-conscious, the industry has an excellent opportunity to grow even more. 

Your teeth whitening business could fit in with other existing businesses, such as cosmetics – there are opportunities and potential profits in the personal care industry. 

Like any business competing in the open market, the three most important features are “location, location and location!”. 

There are several business options where you can establish your business and build up your own clientele from the existing pool of their customers.

You both have the same objective, which is to encourage people to take care of themselves.

A few of the best starting points are:

  • Dental Clinics
  • Bridal Shops
  • Malls
  • Trade Shows
  • Wellness Clinics
  • Massage  and thermal spas
  • Weight loss clinics

What should you invest in, and what does it cost?

There are a few different streams that you can choose from, and the basic requirements may vary accordingly.

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In short, you can set yourself up in one of the following models:

As a beauty professional, you add teeth whitening to the list of beauty services you offer.

Teeth-whitening treatment is a natural component of beauty treatments!

By associating your business with one or more dental practices, you will be offering a full range of services to a built-in stream of customers.

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Often dentists are too busy to offer their own whitening services, and there’s a win-win outcome when you can build up a solid relationship.

Offering a mobile teeth whitening service means you can get started faster without renting a location.

It means customers don’t have to find you – you go to them.

It can mean a more profitable business with high profit margins and minimal investment.

Rent space in a salon and offer teeth whitening to their existing customers.

It means minimal up-front costs and a pool of possible clients.

What insurance does a teeth whitening business need?

The essential insurance covers that all teeth whitening businesses should have are:

  • Protection against claims by third parties (not your clients) that some loss, injury or damage was caused in the course of your activity (see General Liability)
  • Protection against claims that the professional service you provided was inadequate or improper (see Professional Liability)
  • Protection of your investment in equipment, inventory, vehicles (see Commercial, Equipment, Vehicle, Inventory).

As well, once your business is up and running, you should start to consider the ongoing protections you need, such as:

  • Fraud or theft by employees
  • Loss of income due to some interruption in your operation, for example, if your location suffers a fire and you have to cease operations for a time
  • Loss of customer records
  • Workers compensation insurance if you have full-time, part-time or temporary employees.
  • The actual numbers vary state-by-state. For your own state, visit the Department of Labor website

General Liability Insurance for your business

General liability insurance covers you against any claims made against your teeth whitening business by anyone (clients as well as members of the public) for accidental injury or damage to themselves or their property.

It means anything that happens either inside your business premises or wherever you may be working.

The key word here is accident –  not for claims that you injured or damaged your client when performing your work.

For that, you need Professional Liability insurance (see below).

Suppose you are found to be responsible for the damage or injury.

In that case, this insurance will cover the associated costs up to the chosen limit, including payouts awarded by a court as compensation along with legal fees for defending yourself.

Most small businesses take out enough insurance to cover a single claim of $1 million and total claims of up to $2 million in a single year.

See the table below, where we have compiled a comparison of the expected costs of all the insurances we have discussed in this article.

Professional Liability Insurance for small businesses

Professional Liability insurance – will provide protection for you if a client claims you’ve made a mistake, offered poor advice or been negligent in your services.

This cover is essential when you are doing hands-on teeth whitening techniques because they involve strong chemicals and gels.

You could also be working with advanced lasers and powered brushes.

No matter how high your level of care is, clients expect only the best.

They may sometimes claim that the exemplary service that you provided was faulty.

Defending yourself from such claims can be a lengthy and very costly procedure.

Even if in the end you are found to have done the work without error, it can take a long time, and high legal fees, so get the matter resolved.

Public Liability insurance is on hand to keep you protected in any case where a customer claims a lapse in your duty of care. 

Depending on the size of your business, you should set appropriate levels of cover.

In other businesses operating in the same sort of fields as teeth whiteners, policies that provide for $60,000 total cover for all claims in the single year, with a per-claim limit of $30,000, are the usual choice.

See the table below, where we have compiled a comparison of the expected costs of all the insurances we have discussed in this article.

Commercial Insurance for small businesses

If you own your business premises, especially if there’s a mortgage, you must carry insurance against damages from any source.

These can include an unforeseen hazard, like a fire, water damage from floods or storms, as well as malicious damage and vandalism.

Suppose the premises are rented or sharing space with some other salon or dental practice. In that case, there may be a clause in the rental agreement that you are responsible for some proportional level of property insurance. 

If you run your business out of your private homes, understand that regular private insurance is invalid and you may have any claim rejected.

It may be necessary, depending on your insurance company’s own policies,  for you to either declare the commercial usage, in which case a special clause may be added to the policy at some additional premium or for you to negotiate a proper commercial insurance package for the area of the home where you are conducting the business. 

Most commercial insurance policies cover the contents, like computers, furniture, and general equipment.

However, special insurance is needed for dedicated equipment such as lasers, powered tools, etc. For these, specific Equipment Insurance will be required.

Inventory insurance

One of the main parts of a teeth whitening business is a stock of specialized products both for use in treatments and for sale to customers.

Insurance against fire, water damage is essential along with if the place of work is robbed

Equipment Insurance for your teeth whitening business

Suppose you have chosen to work with laser (LED) teeth whitening.

In that case, you need specialized and maybe expensive equipment, including adjustable chairs and the laser.

It is costly to replace it in case of any damage, loss, or theft.

Run a mobile business where the equipment has to be moved around to clients’ homes? It may have to be stored in unsafe environments, creating a need for equipment insurance against malicious damage, fire, theft, other such deliberate acts, together with damaging natural events.

Unless you are already insured, how will you keep the business running?

Insurance for commercial vehicles

Suppose part of your business is traveling to customers’ homes or to shared spaces such as hospitals, dental clinics, malls and so on.

In that case, you should make sure that you have proper insurance for the vehicle you are using.

Suppose you are planning on using your own auto for transport activities on behalf of the business. In that case, you may breach the terms of your private auto insurance policy.

Commercial vehicle insurance is not the same as private auto insurance, which excludes commercial activity.

Short-term insurance for small businesses?

If your business doesn’t operate all through the year, especially at the start, then short-term insurance may be a good option.

The main feature is that you buy only the cover you need for a defined period – for example for 60 days beginning on a specified date.

This can be an option if you are working on a part-time or seasonal basis, like in the months when business activity is at its peak.

In such a case, temporary insurance coverage can provide you with all the insurance that regular annual policies cover for the lowest possible cost.

Estimated costs of the primary insurances for teeth whitening business

The list below is a rough estimate of average annual premiums for the main types of insurance small businesses might need and could change at any time.

Insurance type Price range
Public liability insurance 700$-1200$
Professional Liability insurance 450$-850$
Commercial vehicle insurance 1850$-3250$
Commercial insurance 950$-2750$
Inventory insurance 450$-1300$

FAQ

Do I have to be licensed to perform a teeth whitening procedure?

It is not necessary. As long as you don’t physically touch your clients during a procedure, then you do not need to have a license. 

Does it pay to carry products for sale?

Not all of your potential targets may want to visit your teeth whitening location, but may prefer to take care of their grooming themselves.

When you choose to create an online presence where your customers can view and purchase your products, then you have a whole new field of activity.

Be sure to take out the necessary cover protecting you from data loss or theft.

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