Wisconsin Esthetics State Board Practice Test

What does malpractice insurance primarily protect against?

1. Loss of revenue due to business closure

2. Costs associated with employee training

3. Lawsuit costs arising from client injuries during services

4. Costs of equipment maintenance and repairs

The correct answer is: Lawsuit costs arising from client injuries during services

Malpractice insurance primarily protects against costs associated with lawsuits that may arise from claims of negligence or injury resulting from the services provided to clients. In the field of esthetics, practitioners are responsible for ensuring the safety and well-being of their clients during treatments. If a client is injured or dissatisfied with the outcome of a procedure, they may file a lawsuit, claiming that the practitioner acted negligently. Malpractice insurance helps cover the legal fees, settlement costs, and any potential damages awarded in a court case, thereby safeguarding the practitioner's financial stability and professional reputation. In contrast, the other options relate to different aspects of business operations. Revenue loss due to business closure, costs of employee training, and equipment maintenance and repairs do not fall under the protective scope of malpractice insurance. These areas are typically managed through business insurance, operational budgeting, or maintenance funds, rather than through malpractice policies.