People go to beauty salons, hair salons, and barber shops to refresh their looks and boost their confidence. Those who run the businesses need to have a good understanding of what their customers want and how to keep them satisfied. To ensure the longevity of one’s business, it is important to also think about more mundane things such as insurance.
As with all businesses, there are many risks involved. A storm can damage the premises, tools can break down during use, and a stylist or technician might accidentally injure a customer. The business owner is financially responsible for all the related costs. Salon and barber insurance prepares you for those risks.
This article will cover who needs salon and barber insurance, what the policy covers, and what you can do to lower premiums on the policy.
What Is Salon and Barber Insurance?
Salon and barber insurance is a set of policies tailored to the industry's needs and risks. They cover damage to the premises, property damage to a third party, and bodily injury to a customer. These policies are often also sold separately, but insurance companies oftentimes put together customized packages for different industries and businesses.
Who Needs Salon and Barber Insurance?
Many businesses benefit from salon and barber insurance:
- Hair salons
- Beauty salons
- Tanning salons
- Nail salons
What Type of Policies Do Salons and Barber Shops Need?
There is a whole range of different insurance products available for salons and barber shops. Most salon and barber insurance packages include:
- General liability insurance – This policy covers any bodily injury or damage caused to another person or business. Additionally, it covers the legal fees and any settlement costs related to the initial damages.
- Commercial property insurance – If premises you rent or own sustain damages, either from fire, vandalism, or other disasters unrelated to natural wear and tear, you are covered for repairing or rebuilding the property. You also have coverage for the contents of the property up to the limits specified by your policy. Oftentimes, commercial property insurance and general liability insurance are offered as a bundle and called business owners’ policy.
- Business income insurance – If you cannot work temporarily due to external forces, your losses are covered.
- Equipment breakdown insurance – Your business depends on shavers, dryers, straighteners, and other styling tools. This policy helps cover the cost of repairing or replacing them when they break, including damage from power surges, mechanical breakdown, and burnout.
However, that is not everything that insurance companies offer. Here are some other insurance policies to consider:
- Commercial auto insurance – If you own a company car or other vehicle, you need to purchase auto insurance. It covers you and any employees who get into an accident while driving the car for business purposes.
- Errors and omissions – Also known as professional liability insurance. If a client believes your business caused them an illness, injury, or an infection and files a lawsuit against your business, your legal fees, and settlement costs will be covered.
- Workers’ compensation insurance – In most states, you will be required to take out workers’ compensation to cover the illnesses and injuries employees sustain while doing their job. Additionally, if an employee decides to file a lawsuit, you will be covered for the legal fees.
- Employee practices liability – If a current or prior employee files a lawsuit for harassment, discrimination, or wrongful termination, your legal fees and settlements will have coverage.
How to Save on Salon and Barber Insurance?
Insurance can be costly, but not as costly as an accident or lawsuit would be. While insurance saves you money over time, it does not mean you cannot save on the policy itself. Here are some suggestions for lowering your costs:
- Pay attention to safety – Always put your customers' safety first. Keep your equipment well maintained and regularly review your staff’s safety practices. Give your employees a safety handbook for how to handle various situations and keep it updated.
- Combine multiple policies – If you have several policies from the same insurance company, you can often combine them and get a bundle discount. This can substantially reduce your premiums.
- Shop around – Each insurance company has its own method for calculating risk, which is why you might receive different quotes if you go to different agencies. It is best to get multiple quotes, so you could compare them and get the policy that gives you most value for your money.
- Improve fire safety – Sprinkles, smoke alarms, and fire extinguishers all reduce the risks of severe fire to your business. Demonstrating to the insurance company that you are taking steps to reduce risks can also lead to lower premiums.
- Pay in full – Paying the total amount of your insurance annually rather than monthly is usually the cheaper option.
- Increase your deductibles – When you increase your deductibles, you lower your premiums. However, you have to make sure you have enough savings to cover the out-of-pocket expenses when the need arises.
If your beauty salon, hair salon, or barber shop needs new or better insurance, we would love to help you. Contact us by email, phone, or fill out the free quote form on our website, and we will help you find the insurance that best meets all your needs.