Hands On Trade Association
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1.800.872.1282 Membership for Independent Cosmetologists & Estheticians Massage - Body Workers - Yoga

Hands on Trade

Insurance Coverage Terminology

Please view our Insurance Coverage page for policy information and details.

Here are some useful definitions of insurance terms.

Occurrence Based Policy:
Insurance that pays claims arising out of incidents that occur during the policy term, even if they are filed years later or if the policy is no longer in effect.

Professional misconduct or lack of ordinary skill in the performance of a professional act which renders the practitioner liable for damages.

Professional Liability Insurance:
The obligation that a professional practitioner has to provide care or service that meets the standard of practice for his/her profession.

General Liability Insurance:
A form of insurance designed to protect practitioners from liability exposures arising out of accidents resulting from the premises.

Product Liability Insurance:
Insurance on a professional practitioner from suits arising out of damage caused by a product used on a client.

Damage to Premises:
Property Damage to any one premises while rented by the Insured in the case of damage by fire, OR property damage to premises rented by the Insured for a period of 7 or fewer days.

Per Occurrence Limit:
This is the limit for all damages, whether property damage or bodily injury resulting from one occurrence. Our policy has a $ 2 million per occurrence limit.

Aggregate Limit:
This is the maximum limit for all claims against you during the policy period. Each claim paid reduces the remaining coverage for the period until the aggregate amount is paid.

*If you are named in a malpractice lawsuit, an experienced malpractice attorney will be provided for you if needed. In addition, all legal expenses you incur to settle covered claims against you will be paid win or lose.

Visit our FAQ page for helpful answers to common questions.