Beauty professionals range from eyelash technicians to hairdressers. You might be a one-person show or manage a salon with multiple employees. Both cases require the proper insurance to mitigate the risk of lawsuits, which could be detrimental to your business.
The right insurance plan should include general and professional liability coverage and building and contents insurance. This article details each of these policies protects from financial losses and how they help your venture thrive.
Why do you need insurance in a beauty salon?
You’ve finally opened the salon of your dreams. Congratulations! But without the right business insurance plan, a dream can quickly turn into a nightmare.
Suppose you’re a hairdresser with a brand new salon business. As a business owner, you service dozens of people daily. Clients come for blowouts, cuts, and hair washes.
You or an employee might splash water or shampoo onto the floor and create a hazard for clients and third parties. If someone slips, they may have the right to sue you and your business for property damage or bodily harm.
Such a lawsuit would devastate your new salon! Legal costs, damage awards, and other fees can quickly add up to tens of thousands of dollars — amounts that could force your business to shutter.
The proper insurance can mitigate these risks by paying legal fees and damage awards on your behalf. It also provides peace of mind to know that someone injured at your store won’t drive you into financial hardship.
Related: Beauty Services That Need Insurance
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What types of insurance do beauty professionals need?
General liability insurance protects from scenarios such as the one above. It covers lawsuits arising from day-to-day risks that result in bodily injury, property damage, and even libel or slander. Whether it’s slipping on shampoo or an icy doorstep, general liability insurance covers the legal troubles that follow.
Professional liability insurance, also known as errors and omissions insurance, protects your business when it provides negligent or misrepresented services.
Suppose you provide a manicure and chip the client’s nail. This error could give the client the right to sue you. In this instance, professional liability insurance can cover legal fees and damage awards related to such a claim.
Contents insurance covers risks outside of lawsuits. This protection covers the items you need to run your store from damage or theft.
Suppose a theft or unfortunate event causes you to lose the expensive equipment and assets required to run your business. Replacing these items can cost thousands out-of-pocket. But the right insurance plan can pay for replacement fees.
Building coverage covers your store or office when it’s damaged. Sometimes, your landlord might cover these damages, but having this protection can prevent arguments with your landlord when a hailstorm shatters multiple windows.
Do beauticians need insurance if they rent a booth or chair?
If you rent a chair or booth inside of a beauty salon or store, insurance is still essential. In fact, a business insurance policy may be mandatory.
Many businesses that sublease to beauty professionals want peace of mind knowing that their renter is insured. This can mitigate the risk that the salon would be liable to legal costs in an unfortunate circumstances.
Often, the business or person who pays damages is the one who can afford to do so. Just think, if you rented a chair and created a slipping hazard, a client who injures themselves may sue both you and the salon.
The salon owner wants assurance that you’re able to pay for legal costs and damage awards so that the fees won’t come out of their pockets.
Beauticians who rent a chair also require the right professional liability insurance. If you provide negligent services, the fault lies with no one else but you.
And while you may believe you’ll never commit an error, it only requires one bad day for you to accidentally snip off someone’s eyelashes and cause them significant distress.
Beauty professionals need the proper insurance to run their business effectively. The right plan includes coverage for professional and general liability, contents, and your building.
Get a quote and buy insurance online for all your beautician insurance needs with APOLLO Insurance.
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