Posted on May 17, 2014
Beauty salons, barber shops and spas all have unique insurance needs for protecting owners from lawsuits, property damage and theft. Insurance coverage is available to protect every aspect of the company including the owner, property and employees. There is no one size fits all insurance coverage so before purchasing policies, business owners need to understand about the different types of insurance available for the beauty industry. Armed with that knowledge, companies can make the right choices for insurance protection.
Professional Liability Insurance
While not a required insurance coverage, professional liability provides important coverage for salon and shop owners. If someone is upset by a haircut style, the wrong hair color or accidentally receives a cut from a razor, they may choose to sue the stylist or shop owner. Professional liability insurance protects companies from mistakes by paying for legal defense costs and any damages or awards by the court.
Commercial Property Insurance
Business property coverage protects business owners from damage to both the physical building and property inside. Property insurance covers specific perils such as fire, theft, vandalism and wind. Salon and barber shop owners need to purchase this coverage to protect their equipment, furniture and fixtures from damage. Landlord property insurance will not cover business tenant personal property so if salon owners rent their space, it is vital to purchase property insurance for contents.
Business Income and Business Interruption
When a salon or spa is damaged by a covered event such as fire, business income and interruption insurance work together to help shop owners continue to pay the bills while the establishment is being repaired or rebuilt. Because there is loss of income during this time, the business income insurance will cover the loss of salary due to the salon's closure. Business interruption reimburses business owners for fixed costs like rent/mortgage and utilities - those expenses associated with keeping the storefront opened.
Most businesses in today's business world find general liability a necessity. Liability insurance covers injuries or damage caused to other people's property. In a salon situation, a client may trip over something in the store and break an arm. General liability would pay for medical expenses and any court awarded judgment or settlement if the business owner is held financially liable.
Having the right insurance in place for unexpected accidents and risks will protect the significant amount of time and money invested in salons, barber shops and spa businesses. For expert advice on choosing the right type and amount of coverage, an insurance broker can make appropriate recommendations for the insurance most needed in the hair & beauty industry.