Insurance for Barber Shops
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What Insurance Do Barber Shops Need?
Workers Compensation covers your employees' medical costs and lost wages while recovering from a work-related injury or illness. The employee gives up the right to sue your company in return for receiving cash and benefits from Workers Compensation. In some states it’s mandatory for businesses!
Umbrella Policy adds an extra layer of protection to professionals if a serious event or cumulative claims exhaust your current polcy limits. It also covers you for events that would otherwise be excluded from your other policies.
Professional Liability Insurance (or E&O Insurance), protects your small business from claims of mistakes, negligence or malpractice made when providing your services that caused sobody financial loss. PLI covers your legal defense costs, damages and settlements.
General Liability Insurance protects your small business against claims of third-party bodily injury and property damage, reputational harm and advertising injury. It covers medical bills, repair costs & legal fees.
Employment Practice Liability Insurance, or EPLI, protects you from employment-related claims. If you're accused wrongful termination, discrimination in hiring or firing or workplace harassment, EPLI covers your defense and settlement costs.
Business Owners Policy (BOP) protects you from business liability and property damage at a lower cost. BOP covers claims resulting from fire, theft & disasters. BOP also covers claims of bodily injury or property damage during your business operations.
Frequently Asked Questions
Why do Barber Shops need insurance?
Barbers shops can be sued for injuries from a basic slip and fall or from injuries caused by the service. There's also the risk of fire and other property loss.
Why does a Barber Shop need professional liability?
Professional Liability which includes contingent bodily injury and property damage will protect you and your business if a client is injured while getting a haircut or sitting for a related service.
How much is insurance for a Barber Shop?
Most barbershop and salon policies can cost around $400 to $800 a year for General Liability and about the same cost will apply to add Professional Liability.
Is a Barber Shop required to carry Workers Compensation Insurance for independent contractors?
No. Independent contractors are not required to be covered under your shop's Workers' Compensation, but full employees usually are.
What is the difference between General Liability and Professional Liability in the case of my Salon?
There are two basic types of liability insurance: General Liability Insurance and Professional Liability Insurance. General Liability protects your company against bodily injury or property damage lawsuits. These include third party property damage claims, personal injury lawsuits, false advertising, and more. For example one of your regular clients trips and falls on the floor after getting their hair washed. For all related costs the General Liability policy covers your business. It is important to note that General Liability insurance will exclude bodily injury or property damage claims related to professional services, which can be covered with professional liability.
On the other hand, Professional Liability only covers your professional services. An example would be if in your salon, one of your clients expected you to make his look perfect for a modeling interview. If he doesn’t get the job, he could potentially blame it on your professional services and sue for his loss of income. So, having Professional Liability insurance can help pay for all related costs and potentially pay you for your losses while you are defending yourself during the lawsuit. When applicable, it may also pay for legal awards and settlements. The newest addition to Professional Liability insurance is contingent bodily injury and property damage coverage. This will cover claims against you when the bodily injury or property damage is directly caused by your professional service.