Beauty salon insurance pertains to the small business insurance policies barbershop, salon, and similar businesses typically buy. The most popular general beauty salon insurance policy is general liability, that covers both claims your company caused actual damage, property damage, and reputation damage. Depending on the nature of your business, you may choose to include other types of coverage, including premises liability insurance, professional indemnity insurance, and even employee compensation insurance. If you do decide to purchase additional coverage, you’ll need to do thorough research and comparison shopping in order to get the best price possible for your chosen insurance policy.
Beauty salons are one of the fastest growing industries in the country, and competition between salons is fierce. Some beauty salons have expanded into areas beyond their traditional turf, such as chiropractic spas and day care centers. Others have decided to up their stakes and open salons that offer private consultations with a personal hairstylist, manicure, pedicure, and tanning. In this case, business owners will need to obtain separate beauty salon insurance policies for their business, spa services, and the private procedures they provide.
Many owners fail to realize that nail salons are also included within the definition of beauty salons and therefore require separate policies. Nail salons fall under the same classification as hair stylists, makeup artists, skin doctors, and similar licensed professionals. For that matter, nail salons must get beauty salon insurance in order to be legally allowed to operate in many states. Beauty salon insurance will protect nail salon owners from liability that may arise from negligence or errors during the provision of beauty services. Beauty salon owners may face a loss if they are sued for using an untrained esthetician, misusing acrylic cosmetic solution, causing damage to a customer’s fingernails, removing too much nail polish, or similar injuries that are found to have been caused by carelessness or accidents on the part of the salon owner or employees.
Business owners should obtain separate beauty salon insurance policies that cover both the property and the services performed on the premises. Some beauty salon owners only insure the physical beauty salon itself, ignoring the rest of the establishment. When this happens, the provider is not covered for injuries, damages, liabilities, and any other issues that might arise from the usage of the property and facilities. In addition, some insurance policies only provide coverage for a fixed amount of time, usually one year, while others provide coverage for up to 20 years. Insurance companies that offer long-term coverage often raise the premiums slightly to compensate for the increased risk.
Many states require beauty salon insurance to protect hairstylists, makeup artists, nail technicians, and other employees from professional liability claims. However, there are many stylists who work without the benefit of professional liability insurance. It is important that these individuals understand that their employers, whether they employ individual workers or outsourcing professionals, are responsible for negligence if employees are injured on the job. Most states have rules and regulations regarding how much coverage is available to individual employees, but the beauty industry has developed its own unique rules that often differ from state to state. For example, in California, stylists are covered for both physical and mental pain and suffering, and emotional distress.
When an employee is injured on the property of the employer, whether it be a hair salon, nail salon or makeup artist studio, the business owner can choose to take a form of “no win no fee” settlement. This form of arrangement means that the employer will pay the victim for all past and future medical bills, as well as other lost wages, if the victim’s claim for lost wages is granted. With no win no fee, an employee only need to file a claim to recover his or her past and future losses. Most beauty salon insurance policies offer this same coverage; however, most companies only offer bop, which is basically an umbrella that includes property damage and liability coverage.