Which statement about liability insurance is true?

Liability insurance is essential for cosmetologists as it provides financial protection against claims that may arise from their professional services. This type of insurance covers legal costs and any settlements or judgments that result from claims made due to alleged negligence, wrongful acts, or injuries that occur in the course of providing services.

For instance, if a client experiences an adverse reaction to a treatment or claims that they were injured while receiving a service, liability insurance would cover the costs associated with defending against these claims. This financial safeguard allows cosmetologists to operate their businesses with greater confidence, knowing they are protected from potentially devastating legal costs.

While other statements discuss various aspects of working in the cosmetology field, they do not accurately reflect the critical function of liability insurance. It is crucial for all practitioners, whether independent or working in a salon, to have this coverage to mitigate risks associated with their work.