Salon Insurance

Understanding Beauty Salon Insurance

Stylists are people, and people are prone to the occasional accident. When it comes to the beauty industry, clients often expect quite a lot from their stylists. If a stylist makes a mistake, uses a product incorrectly or otherwise accidentally injures a client, the business needs to have the correct legal protections available.

Professional liability insurance for hair stylists can prevent your business from legal cases involving negligence, bodily injury and other damages.

Nail salons, spa salons and beauty salons also encounter their own host of associated risks. For instance, the equipment can accidentally break while a client uses it, drainage issues may occur due to clogging from excess hair, and acrylic nails could become infected.

With many beauty salon insurance options to choose from, navigating the market and understanding the purpose and protections provided by these insurance plans can be tricky. We've gathered the information for beauty salon owners below to ensure you're able to feel confident when selecting your next hair salon insurance plan.

Why Do You Need Liability Insurance for Hairstylists?

Even well-off beauty salons can face liability issues due to natural disasters, human error or client accidents. Many salon owners make the mistake of thinking that their clients would never sue them for potential damages. Unfortunately, that's rarely the case.

Even the most loyal salon clients may file charges against your salon in the event of stylist negligence, faulty products or unintentional mistakes.

Purchasing the correct associated hair professionals liability insurance plan can help you protect your business from these lawsuits and keep your business from suffering severe financial harm.

What are common liability risks for hairstylists?

Liability risks vary from field to field. Hairstylists face unique risks specific to their role, such as:

• Accidental cuts, scrapes or bruises from stylist tools.
• Allergic reactions to hair care products used during a cut, dye job or styling.
• Product recalls and associated injuries.
• Accidents caused by third-party contractors or individuals renting a station within your salon.
• Defective products sold in-store to customers that cause injury or illness to clients.

Each of these individual issues poses a significant threat to your business. Therefore, it's vital that, as a business owner, you carefully consider what risks your business faces and have the coverage you need to be prepared in the event of an accident.

What does professional liability cover for salons?

Beauty salon insurance provides a variety of coverage options for your business. Professional liability plans offer coverage for accidents, injuries and illnesses from services your salon provides.

You must read and review your policy carefully to ensure you understand what your specific plan covers, however. Some plans may only provide coverage for certain services.

Ultimately, many plans cover most bodily injury cases, negligence claims and other accidents occurring at the salon. However, services such as microblading may not have coverage options at this time, so you should read your policy carefully to ensure your business has full coverage.

What Cosmetology Insurance Plans Do You Need?

Determining the specific coverage required for your business depends on many factors, such as:

• The type of salon you run: There are many different salon types, including beauty salons, hair salons, barbershops, nail salons and spa salons. Each type of salon may require different coverage types based on the services offered.

• Geographical location: Your location may impact the type of insurance you need to purchase for your business. Certain cities and states require salon owners to have specific insurance coverages to operate legally. You should research local and state ordinances to determine what coverage your business requires.

• Employees and contractors: If you directly employ more than four people, you must have workers' compensation insurance. Professional liability insurance offers additional coverage if you bring on contractors to work for your organization.

Consider these factors carefully before you make a buying decision for your business. Many salon owners find it helpful to purchase professional liability insurance, general liability insurance, workers' comp insurance, general business insurance and errors and omissions plans. Each plan provides a different type of coverage to prevent a financial disaster in the face of a lawsuit.

The plans and policies you select should reflect the services your business offers and your general needs. Owners often struggle to understand which insurance policies they have to purchase and which may be overkill. Using the "get a free quote" tool or speaking to one of our consultants can help you decide which insurance packages you need to maintain financial security.

How Much Is Professional Liability Insurance for a Salon?

You may wonder, "How much is insurance for a hair salon?" and "What does professional liability insurance cover?" Several factors influence the overall price for insuring your salon. For instance, businesses that have had claims in the past may experience higher premiums than claim-free businesses.

Additionally, claims differ based on the number of employees working for your business and the state you live in. Whether you choose to bundle different coverage types can impact your annual cost as well.

The most basic coverage plans cost most business owners $300 a year with a $1 million limit. Additional coverage options, such as professional liability and workers' compensation, accrue additional costs. However, many insurance providers offer bundled services that save business owners significant money on their monthly premiums.

Owners should also remember that many plans feature customization options based on their needs. For instance, you can opt out of hair salon insurance options if your business offers only manicures and pedicures.

Additionally, you can choose plans with or without deductibles, which can impact the value of your monthly premium. Options such as these allow you to determine the kind of coverage you need for your business based on your history, services and finances.

FAQs About Associated Hair Professionals Liability Insurance

Are professional liability insurance policies really necessary?

While not mandated by law for salon owners in most states, this type of coverage is essential. When performing professional beauty services, the risk of accidental injury or harm becomes significant. Without a professional liability policy, business owners may find themselves spending hundreds if not thousands of dollars in court fees, damages and financial reparations.

Does professional liability insurance cover slips and falls?

No, most professional liability plans do not cover slips and falls that take place in-store. For this type of coverage, you'll want to bundle your plan with general liability to prevent any potential lawsuits.

Does the policy cover only haircuts?

Each policy is different regarding the services covered. However, many plans cover cosmetologists, nail techs, hair colorists and other beauty-related service providers as well. To determine your exact coverage, make sure you read the details of your policy carefully and disclose all services your salon offers.

Final Thoughts on Hair Salon Insurance

Overall, owning and running a salon is a relatively high-risk business. Accidents happen and happen often. Additionally, your employees work with chemical products and sharp objects closely with customers. Therefore, professional liability coverage is essential in preventing financial disaster while operating your business.

Whether you're planning on opening your salon or looking to upgrade your current coverage, you have plenty of affordable options. Contact us for a free quote and to learn more about your coverage options.