When working with scissors, dyes, and razors, it’s important that hairstylists know how to keep their clients safe and stay protected from potential claims. Like any other business owner, salon owners typically need a base of a few business insurance policies. Salon insurance is not a specific type of insurance but rather a combination of business policies tailored to suit beauty salons, barber shops, and hairstylists. Experts can help you find quality coverage that fits both your business and your budget.
Whether you’re working with a salon or operating independently, it’s crucial to be covered. Which policies should you look for first? Here are the most important insurance policies for hairstylists.
General Liability Insurance
General liability insurance covers the expenses of claims from third-party bodily injury, property damage, and advertising injury. This is the most common coverage for barbers and beauticians because claims from third parties are prevalent on this line of work. General liability usually includes products-completed operations coverage to property damage and bodily harm due to defective products or faulty services.
General liability is often required for business licenses and commercial leases. Examples of costs covered by general liability insurance include:
- A customer’s medical bills after they slip in your salon
- A neighbor’s repair bills if a fire in your salon causes smoke damage in their building
- Your legal bills if a competitor sues for defamation
Commercial Property Insurance
Commercial property insurance covers the physical assets, such as the salon and the contents within it. Policies can cover damages caused by fire, theft, vandalism, or extreme weather. Theft is one of the greatest risks small businesses face, so property insurance is highly beneficial for most salons. If you are forced to close shop due to an unfortunate event that is protected under your policy, your lost income and ongoing expenses during the closure will be covered.
Workers’ compensation insurance provides benefits to stylists, assistants, receptionists, and other employees if they suffer work-related injuries or illnesses. Coverage includes medical bills and lost wages, and this policy is required in most states when a business has one or more employees. Injuries covered by workers’ compensation typically include:
- Occupational injuries (such as lung disease caused by breathing in hazardous chemicals)
- Traumatic injuries (such as falling and breaking a wrist)
- Repetitive stress injuries (such as carpal tunnel from cutting hair)
Professional Liability Insurance
Professional liability insurance covers legal fees if a client claims your negligence or errors caused them financial harm. Whether a mistake is your fault or not, professional liability insurance helps pay lawyer’s fees, court costs, and judgments or settlements. For example, if you accidentally dye your client’s hair the wrong color, and they claim they lost a modeling gig because of it. If that client sues, professional liability insurance covers your expenses.
As one final note, if you are a hairstylist working as a part of a larger salon, do not automatically assume that your employer’s coverage will extend to you. Some policies may provide coverage, but some may only cover the salon itself and its owners, not individual employees. Discuss this with your employer, and make sure to explain to your agent that you are looking for additional coverage for yourself.
About Bozzuto & Co. Insurance Services, Inc.
Bozzuto & Company Insurance Services has provided business and personal insurance solutions to clients throughout California since its founding in 1981. Our experienced staff understands the unique needs that each person has when insuring their lives and their businesses, and we pride ourselves on our deeply personal customer service. We are happy to help you through every step of the insurance selection process. Contact us today at (800) 400-6394 to learn more about what we can do for you.