Published: May 2014
Whether you own a beauty salon, nail shop, or barber shop, your customers depend on you to safeguard their health, possessions, and personal information while you deliver services to them.
Consider: A purse stolen during a massage, for example, could result in an expensive claim against your company. However, the right business insurance can help—and give you peace of mind so you can focus on doing what you do best—serving your clients.
The right business insurance can also help protect your company from many circumstances beyond your control—such as storms, vandalism, or the failure of your heavy-use plumbing systems or heating/cooling equipment.
Your business insurance agent can help you put together a policy that can cover most of the specific needs your salon or barber shop requires. The most common types of coverage might include:
Business property coverage: This is the coverage most entrepreneurs immediately think of when they hear the term "business insurance." Whether a vandal breaks your shop's front window or a fire in the shop next door spreads to your salon and causes damage, this coverage may help reimburse you for your losses.
General liability coverage: This is a good business-insurance basic that helps protect your business in case someone is injured while in your shop (for instance, if someone trips on your anti-fatigue floor mats and breaks an arm) or suffers property damage (if an employee accidentally spills hair bleach all over someone's expensive black leather bag, for example). Liability coverage can also protect you against copyright infringement, libel/slander, and false or misleading advertising claims, which, according to the Small Business Administration (SBA), is particularly important now that our society is becoming increasingly litigious.
Business interruption insurance: If a storm, a fire or another major event were to cut power to your shop, or if your shop was so damaged that you couldn't reopen for an extended length of time, you and your employees might be unable to see clients and therefore lose critical income. In such circumstances, this type of coverage can help replace lost profits so you can get back on your feet. Depending on your policy, it may also cover your workers' salaries while you relocate or get your business running again.
Professional liability insurance: Also called "errors and omissions" insurance, this type of policy can help protect you from customers who claim you made a technical mistake while providing hair, nail or other salon services like massages. According to the Insurance Information Institute (III), this type of liability coverage is a "specialty" addition not usually included in typical business insurance policies.
Other types of coverage you might also want to consider:
- Data compromise coverage can cover theft, loss or accidental release of personal information held by your business.
- Employment practices liability coverage provides protection from lawsuits by employees or former employees
- Equipment breakdown coverage provides extra protection in case your phones, electrical, heating and/or air conditioning or other key equipment fails or is damaged.
For more information, consult your business insurance agent.