Insurance for Beauty Salons

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Frequently Asked Questions

What Salon Insurances Do I Need?

General Liability Insurance

General Liability is the type of hair salon insurance that protects your company against false advertising, personal injury suits, and damage claims by third parties. Property damage claims and bodily injury claims aren’t covered under General Liability but are covered under a different type of salon liability insurance.

An example of what is covered under General Liability is if you wash a client’s hair and they slip and fall on the floor due to water around the chair and injure themselves. This salon liability insurance pays for their medical expenses.

Business Owner’s Policy (BOP) Beauty Salon Insurance

A Business Owner’s Policy is a combination of policies in a convenient single policy. It combines property and liability insurance, which helps small and mid-sized businesses save money on insurance. As a business owner, you can tailor a BOP to create the insurance plan that fits your hair salon insurance needs.

If you have to close your business due to disaster-related reasons, Business Interruption Insurance covers the loss of income that you suffer. Data breach coverage protects your financial interests in the event that hackers steal whatever personal identification information you keep about your clients.

Professional Liability Beauty Salon Insurance

As its name suggests, Professional Liability only covers professional services you provide at your hair salon and is an absolute must for anyone who deals directly with a person’s body. If you don’t have this type of insurance for your salon, then you run the risk of going out of business and losing everything you own.

Professional Liability Insurance pays for related court costs, your income losses while you’re defending yourself, court costs, lawyer fees, as well as any awards and settlements the client wins.

Workers’ Compensation Salon Insurance

No matter how careful you are in the workplace, accidents do happen or people become ill at work. Workers’ Compensation Insurance covers everything from lost wages and medical costs to physical therapy and rehabilitation. Not only is it a recommended insurance, but it’s also mandatory in many states. Workers’ Compensation protects you from costly lawsuits and provides the worker with a portion of wages they would typically receive.

How much does it cost to insure a Beauty Salon?

The cost of insurance varies on several factors. For liability insurance, it depends on the services you provide. A standard hair salon can pay as little as $350 a year for General Liability and $400 a year for Professional Liability. A salon performing microblading can expect to pay about $2,000 a year for both coverages.

How much does it cost to insure a Hair Salon?

The cost varies, but it mainly depends on the size of your hair salon, the improvements you make, the value of your store's contents, the number of employees you have, etc. A typical cost would be around $500 to $700 a year.

What is the need for insurance in a Beauty Salon?

Things can go wrong no matter how careful you are with your business. When an angry client sues your beauty salon for her eyebrows being waxed too thin, your insurance will cover all the costs of the lawsuit.

Do I need insurance for a booth as a Beauty Salon or Hairstylist?

Booths are more at risk of financial loss due to theft, fire or lawsuit, as they are more prone to these incidents. Whether you're just getting started or beginning to expand in new locations, you need the right insurance to keep your investments secure.

Why do Beauty Salons need insurance?

Businesses who work in this industry, do activities such as hair cutting and trimming, hair coloring, facials, and make-up application. Examples of these establishments are beauty parlors, facial salons, combined beauty and barbershops, hairdressing salons, cosmetology salons or shops, and unisex or women's hair styling stores. If you own a beauty salon, barbershop, or provide cosmetology services, you know how important it is to invest in yourself. The hair, makeup, aesthetic services you provide customers make them feel more confident in who they are. Why wouldn’t you do the same for your business? Buying insurance for a beauty salon is the best investment you can make in your business.

What risks could Beauty Salons face?

Without insurance, one unhappy customer can make a claim, file a lawsuit, drain your bank account, and ruin your reputation. Take a look at some common scenarios you need protection against:

  • Slips: You work with a variety of beauty products with removable caps like shampoo. If one of those bottles spills and a customer walks in and falls, you are responsible for the injuries. Along with their medical expenses, you can also be held liable for lost wages if the injury is too severe for them to return to work.
  • Service Mistakes: Some products you use are considered chemicals like hair dye. If dye spills or drops onto a customer’s designer dress or shoes you will need to replace it. If the dye turns a CEO’s hair bright orange and damages their reputation, they can file a lawsuit for damages.
  • Advice Goes Wrong: One of your services may include providing advice for hair and cosmetics products. If you recommend a new facial cream that burns the customer’s skin and causes long-term damage, they can file a lawsuit for physical and emotional damages.
  • Employee Injury: Stylists and barbers work with cutting tools like scissors and razors. It is easy to cut or scrape their hands if a customer moves unexpectedly while in the chair.

Other possible claims include loss of property due to theft or fire, libel claims if an employee posts something unkind about customers online, or even copyright infringement if you make a spin-off of a competitor’s advertising technique.

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.

Do Beauticians Need Professional Liability?

Before determining if a beautician needs Professional Liability is it important to know what types of professions are considered under the umbrella term of beautician. A beautician can include hairstylists, hair colorists, estheticians, and even skincare professionals to include botox, fillers, and even skin rejuvenation. Because all of these are dealing directly with customers’ bodies, Professional Liability insurance is absolutely necessary for anyone that is considered a beautician.

If you are a colorist and end up using the wrong color, or leaving the dye on too long your customer will likely sue you if they are extremely unhappy. As a skincare specialist, a customer could have an adverse reaction to a filler or chemical peel. If you offer waxing and mess up someone’s skin from the wax being too hot, or removing too much hair they might bring you into a lawsuit. All of these unforeseen circumstances can happen, among many others. Without Professional Liability insurance you could end up being put out of business or losing everything you own. This insurance policy will pay for any judgments or settlements related to any errors or omissions you may make during the course of your work. And, regardless of fault, it will pay your court costs and lawyer fees as well.

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