Insurance for Beauty Salons

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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.

$40
Minimum monthly cost
for low risk businesses
$42
Median monthly cost
for average size businesses
$48
Average monthly cost
for average size businesses

What type of insurance does this industry need?

Policy What is it? Why get it Popularity in your industry Want free quotes?
General Liability
This policy protects your business in case of third party claims, such as bodily injury or property damage. For example, the common "slip-and-fall" claim would be covered by your General Liability policy. General Liability insurance is often considered to be the core coverage, particularly for businesses that regularly physically interact with customers or sell physical goods. In addition, many businesses have a contract, like a loan or a lease, requiring that they have this coverage.

What is it: This policy protects your business in case of third party claims, such as bodily injury or property damage. For example, the common "slip-and-fall" claim would be covered by your General Liability policy.

Why get it: General Liability insurance is often considered to be the core coverage, particularly for businesses that regularly physically interact with customers or sell physical goods. In addition, many businesses have a contract, like a loan or a lease, requiring that they have this coverage.

Professional Liability
This policy, common in the professional services industry, helps to protect your business if a client believes they've suffered a loss due to a mistake or error made in a professional capacity. Your business may have contracts with clients or partners that require Professional Liability coverage, provide a "warranty or guarantee," or have clauses that require you to "indemnify or hold harmless" your clients. If so, Professional Liability coverage is often recommended. This coverage is also commonly recommended for any businesses providing advice related to legal or financial matters.

What is it: This policy, common in the professional services industry, helps to protect your business if a client believes they've suffered a loss due to a mistake or error made in a professional capacity.

Why get it: Your business may have contracts with clients or partners that require Professional Liability coverage, provide a "warranty or guarantee," or have clauses that require you to "indemnify or hold harmless" your clients. If so, Professional Liability coverage is often recommended. This coverage is also commonly recommended for any businesses providing advice related to legal or financial matters.

Commercial Property
This policy protects the business's physical assets and is appropriate whether you own or lease your space. Keep in mind that this policy will only offer protection in the case of covered events. If you need protection for certain scenarios, such as floods or earthquakes, you may need additional coverage. If you have a mortgage or a lease, you may be required to have property insurance. Even if you are not, this is the best way to protect the building you are in and the business property you have in case of a natural disaster or some other accident.

What is it: This policy protects the business's physical assets and is appropriate whether you own or lease your space. Keep in mind that this policy will only offer protection in the case of covered events. If you need protection for certain scenarios, such as floods or earthquakes, you may need additional coverage.

Why get it: If you have a mortgage or a lease, you may be required to have property insurance. Even if you are not, this is the best way to protect the building you are in and the business property you have in case of a natural disaster or some other accident.

Workers Compensation
Workers Compensation covers an employee's lost wages and the cost of resulting medical treatment if they suffer a work-related injury or disease. It also covers services needed to help the employee recover and return to work. Workers Compensation coverage is mandatory in most states. The number of employees after which it's required differs by state, but you will generally need coverage once you have employees.

What is it: Workers Compensation covers an employee's lost wages and the cost of resulting medical treatment if they suffer a work-related injury or disease. It also covers services needed to help the employee recover and return to work.

Why get it: Workers Compensation coverage is mandatory in most states. The number of employees after which it's required differs by state, but you will generally need coverage once you have employees.

Umbrella Insurance
Umbrella insurance offers excess liability protection in the case that your General Liability, Commercial Auto Liability, and/or Employer's Liability coverage is insufficient. It essentially acts as a "back-up" plan, providing additional financial protection in the case that your business faces a particularly large claim that exceeds a single policy's limits. This policy can be particularly valuable for a business that faces a variety of risks and has multiple liability policies.

What is it: Umbrella insurance offers excess liability protection in the case that your General Liability, Commercial Auto Liability, and/or Employer's Liability coverage is insufficient. It essentially acts as a "back-up" plan, providing additional financial protection in the case that your business faces a particularly large claim that exceeds a single policy's limits.

Why get it: This policy can be particularly valuable for a business that faces a variety of risks and has multiple liability policies.

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