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Three Esthetician Insurance Review

The benefits explained

  • Highest possible score for AM Best’s financial strength: Berkshire Hathaway, Three’s underwriter, has an A++ (superior) financial strength rating with AM Best, indicating a superior ability to pay claims to policyholders.
  • High coverage limits up to $10 million: With Three, you can choose coverage limits of up to $10 million. This is the highest coverage limit we have seen of some of the best beautician insurance companies.
  • Full coverage: Three’s comprehensive policy covers professional liability, business interruption, cybersecurity, workers’ compensation, company auto, and coverage for company property and assets. This level of coverage can make you less vulnerable to coverage gaps and often requires adding riders or endorsements from other companies.
  • The policy is only three pages: The company is called Three for a reason. Its flagship policy is just three pages long, which can be significantly shorter than comparable insurance policies (especially with multiple endorsements). Additionally, you can view a sample policy directly on the website. This is a cool feature that speaks to the transparency of the business.

Disadvantages Explained

  • Must speak to an advisor to apply or update: You can get a quote online, but you’ll need to speak to an advisor to apply. A phone call is also required to add additional policyholders – some providers allow you to do this instantly online.
  • Does not offer endorsements: Although the Three policy is designed to cover everything businesses need, you may want to add specific coverages or endorsements that Three does not offer.
  • Coverage is based on claims: The policy must be active at the time of loss for coverage to apply. This is less than occurrence form coverage, which covers claims as long as the policy was active at the time of the incident.
  • The policy is only three pages: There are pros and cons to this. With simplicity and the removal of a “mountain of legal jargon”, coverage and liability issues may arise.

Index of complaints

The Three insurance policy is underwritten by Berkshire Hathaway Direct Insurance Company, which has received more complaints than expected with the National Association of Insurance Commissioners (NAIC) over the past three years relative to its market share. The NAIC annually reports a complaints index for each insurance provider based on the number of consumer complaints it receives. An index of 1.00 indicates an average number of complaints for the size of the company, while an index below 1.00 is preferable. Over the past three years, Berkshire Hathaway Direct has had an average complaints index of 1.22, indicating slightly more complaints than expected.

A high complaint index can indicate customer satisfaction issues. However, it’s important to note that Three only has a complaint index of just over 1.00, and it has mostly positive reviews on the Company Website and with the Better Business Bureau.

Third-party reviews

Berkshire Hathaway receives praise from AM Best, an independent rating agency that assesses the financial stability of insurance companies. In fact, Three Insurance was our top pick for financial strength of all best beautician insurance companies we revised. Berkshire Hathaway holds an A++ (Superior) financial strength rating from AM Best, the highest possible rating available from the agency. AM Best ratings are important because they indicate the likelihood that an insurer will be able to pay claims to policyholders.


Three insurances The Hartford Next Insurance
Types of coverage Professional Liability, General Liability, Commercial Property, Commercial Automobile, Workers Compensation, Business Interruption, Cyber Professional Liability, General Liability, Commercial Property, Workers Compensation, Commercial Automobile, Business Income, Cyber Professional Liability, General Liability, Commercial Property, Workers Compensation, Commercial Automobile, Business Insurance
Online application Nope Yes Yes
AM Highest rating A++ (Superior) A+ (Superior) A- (Excellent)
NAIC Complaint Index (three-year average) 1.22 0.29 0.30 (average over two years)

Policies available

Three Insurance offers a simple policy that provides a variety of business coverage.

The policy of the three insurances

The Politics of Three is about three pages long and easy to understand. It includes the following covers:

  • Professional liability: It covers professional responsibilitygeneral liability, liquor liability, employment practices liability and fiduciary liability.
  • Interruption of work: This helps replace lost business income due to a covered incident and may cover additional expenses.
  • Cyber: This includes data breach and cyber liability insurance, which is essential for companies that collect information about their customers online.
  • Workers’ Compensation: This pays for medical bills and lost wages if an employee is injured on the job. Most states require workers compensation coverage by law for companies with a certain number of employees.
  • Company car: This provides comprehensive cargo liability coverage for company vehicles and includes rental and non-owned vehicles.
  • Property and assets: This helps pay for damage to your property or equipment caused by a covered event, such as fire or theft.

Three allows you to customize your coverage during the quote process. If you do not need to cover vehicles or property, the price will be adjusted accordingly.

Customer service

Three Insurance maintains extended customer service hours on weekdays between 8 a.m. and 9 p.m. EST. You can call 1-800-507-4495 to speak with a Certified Small Business Counselor. In our interactions with customer service, we experienced short wait times and helpful, friendly representatives. You can also start a quote with Three at any time, but you’ll need to speak to an advisor to apply.

Is three beauticians insurance right for me?

If you have a business with employees and you or your employees drive for business purposes, Three might be a good choice. If you have high coverage needs, consider Three as well. Getting a comprehensive policy could save you money and help avoid coverage gaps, but you may be able to cut costs by looking elsewhere if you only need basic general and professional liability. Also, make sure you are comfortable with the simplicity of Policy Three before signing up.

Our Methodology: How We Review Insurance Companies for Beauticians

To determine the best insurance companies for beauticians, we collected 20 data points on the main insurance companies for beauticians by premium. These data points include:

  • Financial solidity
  • Cost
  • Policy Types and Features
  • Exclusions
  • Consumer Complaints
  • Online tools
  • Billing options
  • Coverage limits

We gave preference to companies with high AM Best ratings, a low rate of customer complaints, and those that offer coverage based on the date of the event rather than when the claim was made. Companies with high aggregate coverage limits, monthly billing, low premiums, online shopping options, and those that offer property coverage received improved ratings. To rank the companies we studied, we applied the following weightings to each customer-focused category:

  • Types of coverage and features: 40%
  • Financial stability: 20%
  • Consumer complaints: 25%
  • Online purchase: 10%
  • Billing options: 5%

We dug deeper into product and company specifics to determine which companies were best for which types of consumers. Through this research, we determined which companies offer the best esthetician insurance.

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