Why 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.
Key Risks in Beauty Salons Industry
Without it, 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 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 customers’ 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 spinoff of a competitor’s advertising technique.
What Types of Coverage Do Beauty Salons Need?
Businesses who work in this industry, do activities such as hair cutting and trimming, hair coloring, The first step to proper insurance protection is understanding what insurance you need. Every business including beauty salons needs general liability insurance and commercial property insurance. If employees run errands, you will also need commercial auto insurance, and if you have employees, workers comp is a must.
- General Liability: This policy pays costs and legal expenses associated with third-party injuries, damage to a customer’s property, and slander, libel, or copyright claims.
- Professional Liability: Also referred to as E&O Insurance, professional liability covers you for your professional service mistakes like recommendations or advice to customers.
- Worker’s Compensation: This coverage is critical if you have employees and mandatory in many states. It pays medical expenses when employees are injured on the job as well as lost wages.
- Commercial Property: Pays to replace or rebuild property including your shop and equipment. It is also wise to add loss of business income to a commercial property policy in the event you need to close during renovations.
How Much Does Beauty Salons Insurance Cost?
The cost of beauty salon insurance is different for every business. It depends on the carrier you use as well as the services you offer. Most carriers review your experience, past claims history, and policies and procedures in addition to services. They use this information to calculate premium costs for your beauty salon. You can request a quote below to see the cost of insurance for beauty salons.