Like most retail businesses, it is important to have good beauty salon insurance in place to protect the owner, the employees, and the assets of the business. It’s extremely important to have the business insurance in place prior to opening the business and serving your first client.
No matter whether just a beauty salon, or offering a combination of services, every salon needs to have the proper insurance. Three basic insurance needs any retail business will have is general liability, property insurance and if there are employees, workers compensation. In addition, we’ll look at some insurance coverage that a salon should also carry.
Let’s review general liability insurance. General liability insurance will cover the business in the event a lawsuit is brought for personal or property damages. Say someone falls in the lobby, the general liability insurance would cover any legal fees, court costs, and judgments against the business. Often, this can be offered as part of a business owner’s policy which combines general liability insurance with property insurance.
Generally, property and casualty insurance is combined for the best value. Property insurance will cover losses from damage to the building or its contents. The salon can be operated in either an owned or leased space. Casualty coverage will insure against losses or damage to the business. It may be beneficial to discuss plate glass coverage based on the shop design and whether leased or owned.
Worker’s compensation insures your employees for any on the job injury. This policy is separate from other policies and will cover medical treatment, rehab, and pay a portion of earnings until the employee returns to work. In return for this type of coverage, in most cases it prohibits the employee for suing the business.
Two other forms of liability insurance should be considered by the salon owner. The first is professional liability insurance. If renting beauty salon chairs, you may want to require your stylists to provide proof of liability insurance. If a client sues for damages as a result of worked performed, or negligence, the general liability policy may not cover this claim. The second type of additional liability insurance is product liability insurance. If the salon is selling products to clients for home use, this coverage should be seriously considered, even if the products are not manufactured by the business. Faulty product lawsuits generally are brought against all facets of distribution from manufacturer through seller.
Should you consider a business owner’s policy to protect your beauty salon, ask your agent about coverage options. It may be possible to add mechanical breakdown coverage or loss of income insurance to this policy. The range of options makes a business owner’s policy a great choice for beauty salon insurance.