Salon Insurance

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Why Salons Need Insurance

They always say that beauty never fades, it is timeless. While other industries are frequently experiencing ups and downs; it seems that beauty treatments are dubbed to be “recession-proof.” Commodities concerning beauty and wellness are often well-loved by most people from all over the world.

But what if that love turns into a nightmare? Just like what happened to a 14-year-old girl who went into a beauty salon to have her hair dyed blue. Much to her dismay, she came out with third-degree burns and bald patches. Shocked and disappointed, her parents spent $85,000 in medical expenses along with surgical procedures to treat the acquired condition. Her parents fired back a lawsuit against the beautiful salon for negligence, pain and suffering. It was later found out that the stylist had not followed the product directions, causing severe damage to the girl’s hair and scalp.

Even if you have tons of loyal customers, scenarios like this do happen in real life. Accidents can strike anywhere, and without the right salon insurance, your business might face costly lawsuits and expensive damages. Business owners of small salons are most vulnerable to financial loss compared to their larger counterparts. Their small size makes them an easy target for negligence claims, bodily injury lawsuits and even damages from natural or human-made disasters.

Salon Insurance Types for Business Owners

Just like other industries, protecting your hard-earned investment is indeed vital to ensure the financial interest of your small business. Whether you are a newbie to this industry, planning to expand to a new location or an established beauty parlor that needs security, you need the right type of salon insurance to keep your business protected from unfortunate events.

Salon Liability Insurance

Familiar as General Liability Insurance, this policy provides protection should a customer suffer from an accident resulting in bodily injuries. It is also applicable for property damage that occurs within your place of business. A great example where salon liability insurance comes extremely handy is when a customer accidentally slips at a wash basin. The policy will help pay for medical expenses, legal defense and settlement costs in case the customer decides to file a lawsuit against you.

Property and Casualty Insurance

Whether you own or lease the salon, this commercial property insurance will help protect your property against physical damages. It provides coverage for any belongings kept inside your business such as computers, counters, chairs, tables, tanning beds, styling equipment, salon products, sofas and more. Note that Property and Casualty insurance does not cover plate glass walls, and a separate add-on must be purchased on top of your premium.

You can bundle Salon Liability Insurance and Property and Casualty Insurance with a Business Owner's Policy (BOP).

Professional Liability

Professional Liability covers your mistakes resulting from your professional services. 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.

Workers’ Compensation Insurance

Depending on the state where you operate; Workers’ Compensation is a must-have policy for all salon owners. It provides employee protection in case of job-related injuries or illnesses. It helps pay for medical bills, lost wages, and rehabilitation expenses as a result of the incident. Also, as the owner, you are equally protected from legal charges due to negligence because the employees will not be allowed to sue.

Insurance Risk for Salon Owners

Depending on the nature of your trade, there are salon insurance risks that might affect not just your policy coverage but your whole business as well. There are specific scenarios in which your business insurance will not provide the needed coverage. To better protect your salon business, and to ensure that everything is well covered, always remember special considerations.

When hiring beauty contractors:

• There are occasions in which freelance hair stylists, manicurists, and massage therapists will rent a small space inside salons to save cost. Should someone rent a space inside your shop, they may not be covered by your General Liability insurance. A bad haircut, small injury over a sharp object or unwanted hair color can cause a colossal frenzy for your business. Not to mention that physical harm, due to an allergic reaction and chemical burns, is common in the salon industry. • It would be wise to require all your beauty contractors to purchase Professional Liability insurance. In case someone files a lawsuit, this will protect you as the owner, your employee and the business itself.

When selling beauty products:

• Most of the time salon owners sell various beauty products inside their shops to boost profits. These products are obtained from direct manufacturers or third-party suppliers. Regardless of where you purchase these products, a manufacturing flaw or chemical imbalance could cause an injury or severe illness to your clients. • To protect yourself from lawsuits due to faulty products, getting a Product Liability insurance is the answer. If one of your products causes harm to your customers, you are protected against the manufacturer’s mistake.

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Who Needs Salon Insurance?

Since not all salons offer the same kind of products and services, there are several types of insurance policies applicable to specific businesses. Keep in mind that the salon industry is such a different trade that your needs and requirements might not be the same compared to other beauty parlors operating within the area.

Nail Salons Due to the use of sharp tools and various chemicals for cleaning and polishing nails, nail salons should consider getting Professional Liability insurance. Injuries are common when doing manicures and pedicures, and one single injury might lead to a financially challenging lawsuit. Workers’ Compensation is likewise needed to make sure that employees are protected against health threats due to chemical fumes and synthetic substances.

Hair Salons or Barber Shops Cutting and styling hair is fun, but having a drainage system clogged with hairs is not. Consider getting a unique coverage option such as a Drain and Sewer Backup policy from a reliable insurance company, so you don’t have to pay exuberant amounts of money to clean your sewage.

Spa Salon If you are into the wellness side such as a spa or aesthetical services like med spas offering botox or other beauty injection services, the use of candles and essential oils that are often flammable is indeed common. You can benefit from getting a Fire Liability insurance coverage to safeguard the assets of your business.

Beauty Salon For those dealing with tanning procedures, facial cleaning, airbrush makeup, microblading and other services that mostly rely on the use of equipment; having an Equipment Breakdown coverage on top of your Salon Insurance is a wise investment. This policy ensures that your gadgets and gear are well protected in the event of breakdown or damage.

Business Insurance

Running a business is challenging enough without having to worry about lawsuits, employee injuries or property damage. Having the right insurance gives you the peace of mind to focus on what matters - running your business.

The coverage you need depends on the type of business you run. A restaurant owner needs to be covered against customers possibly getting food poisoning while an accountant needs to be covered against calculation errors. CoverWallet's intelligent assessment system will identify the insurance you need based on your specific business, get you a policy that fits your budget, and do it all in less time than you think.

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