Who’s Got Your Back, Salon Owners?
Keep Covered with Professional Liability Insurance
You take pride in your work. You love to help people look and feel good about themselves.
You’re up to date on the latest trends, the best products, and you’ve always got your clients’ backs when it comes to their hairstyle and color needs.
However, who’s got your back? If you own a salon or work as an independent, you need to know about hair salon insurance for your small business.
You need to keep your assets, hair stylist, and clients covered.
Also, if you own a home, you need to be protected in case of lightning strikes, fire, or heaven-forbid the mail-carrier slips and falls on your icy sidewalk.
The same is true for salon owners – you need hairstylist insurance to protect you from accidents and liability as well as personal and physical damage to you or someone else.
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Why Do I Need Hair Salon Insurance?
Why beauty professionals need hair salon insurance is to cover your business from accidents and liabilities.
Nobody plans on having an accident, but unfortunately, accidents do happen.
So that’s why you need some form of hairdresser liability insurance.
Of course, you’re a great hairstylist, but sometimes, no matter how careful you are, things go wrong.
If you made a mistake on a color or cut and a client sued you for messing up their hair, it could mean the end of a great career.
Worse yet, accidents can happen with the many different hair chemicals in a salon.
We never want things to go badly, but a client could lose their hair to breakage from over-processing or suffer harm from a fall while in the hair salon.
Cosmetologist Liability Insurance
Cosmetologist liability insurance will protect you if a client has a bad experience or some form of accidental injury which causes them harm.
If you live in a high crime area, you may need to have extra insurance for theft from your staff or clients.
If you own the hair salon building, you may need to have your structure, products, and tools insured as well.
How Does Insurance Work ForSalon Owners, Spas, & Barbershops?
There isn’t particular insurance for salons or specialized insurance for cosmetologists.
Rather a combination of different types of small-business insurance that you may need to keep your employees, clients, and premises covered.
Often, these policies are sold in bundles, known as Business Owners Policy, or BOP, making the insurance process easy and fast.
Other times, you can purchase separate policies specifically tailored to your individual business needs.
The type and amount of salon insurance you need are dependent on your specific situation, such as the number of stylists and employees, whether or not you own the building, what kind of products you have on hand, how many clients you serve, and even your location.
To be protected, you will need some combination of the following types of policies:
- General liability insurance. Public liability covers claims such as property damage, harm to reputation, and of course, bodily injury.
- Commercial Property Insurance. Commercial property insurance protects the physical assets of your business. Your policy will likely cover problems such as damage from broken pipes, fire, vandalism, or even theft.
- Business Interruption Insurance. This type of policy covers the loss of income after some major disaster.
- Professional Liability Insurance. Otherwise known as Errors and Omissions, Insurance helps to protect the stylist or business owner by covering their legal bills if a client sues over a mistake.
- Worker’s Compensation Insurance. A worker’s comp policy covers medical bills and lost wages for employees or workers that become injured on the job.
Other Considerations For Professional Liability Coverage
Make sure you know what your policy covers and doesn’t cover.
If you see clients in your home, you still need general liability insurance because your homeowner’s insurance policy won’t cover your business activities.
Also, Commercial Property Insurance doesn’t generally cover damage due to a flood, so if your beauty salon is in a flood-prone area, you’ll need a separate insurance policy for that.
In some states, booth rental is standard and requires additional insurance.
Typically, a salon’s general liability policies won’t count as insurance for hairdressers renting a chair.
However, accidents can still happen to booth renters, and salon owners who rent space to independent contractors can be caught up in litigation.
If you or your salon rents booth space to hairstylists, you need to make sure that your coverage extends to booth renters.
You might also consider requiring that your independent contractors carry their hairdresser insurance.
What Types Of Salon Insurance Do You Need?
Most general liability policies have a cap, so if you need a more significant amount of insurance, you’ll have to look for something like an umbrella policy that extends the financial cap to give you the amount of coverage you need.
If your salon has a company car or expects employees to use their vehicle for the salon business, you’ll also need a commercial auto policy.
If your salon stores sensitive information about your clients in a computer system, you’ll probably want beauty salon insurance that covers a data breach.
You may also want to consider a policy that covers expensive equipment in case it breaks down and needs to be repaired or replaced.
Although insurance for hair salons and stylists can be confusing and complicated, a qualified insurance professional can help you discover what policies fit your needs.
They’ll also help you to understand how much hairdresser liability insurance you need without overspending on unneeded coverage
Business Insurance Company Choices
- The Hartford. This company offers free quotes online at www.thehartford.com.
- Insureon. Insureon offers insurance for both salons and booth renters for as low as $35 a month. www.insureon.com
- Nationwide. This well-known company claims to be the top insurance company for small businesses and offers insurance to salons, barber shops, estheticians, and cosmetologists. www.nationwide.com
- Geico. Geico offers liability insurance to small businesses such as barbers and beauticians. www.geico.com
- CoverWallet. Cover Wallet provides quick, customized packages for salon professionals, averaging $500 to $700 per year. www.coverwallet.com
How Much Does Salon Insurance Cost?
Of course, good policies cost money. Moreover, the more coverage you need, the more it will take away from your bottom line.
If your salon is small, you can expect to pay at least a few hundred dollars to a few thousand dollars per year on beauty salon insurance.
The cost varies due to factors such as building size and location, the number of employees and number of clients served, revenue, products, and services available, and how much protection you need.
Review your barbershop/salon insurance policy annually to ensure you have the right amount of hair stylist liability and overall protection.
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