Protecting your beauty salon is imperative for your business to succeed. The key to this success is understanding the main components of salon insurance so your are financial are covered against events out of your control.
Operating a beauty salon and having insurance coverage is in part the same as any other business. Since you are not only dealing with the public by altering the appearance of your clients, special types of coverage most other businesses do not require to have to be included in your insurance policy. This way the salon will remain financially stable, independent of what types of claims are filed against your business.
Public Liability Insurance
Public liability insurance is the key component in the policy to help protect the owner against claims that could close the salon. This is the part that covers the owner against claims made by clients when they were injured by the treatment they requested.
What is covered includes the following;
- Allergic reactions to treatment by the client.
- Can be caused by a chemical reaction between the client and the solutions used in the treatment.
- This can be as simple as swelling of the eyes if a solution or even shampoo enters the eyes of the client.
- Protection if a client slips and falls on the premises.
- Can be the fault of the shop owner or the client themselves.
- The client is infected due to equipment not being properly sterilized.
Professional Liability Insurance for each Beautician
This is the protection for each beautician when they are applying a treatment requested by the client.
- Accidental burn by a hot iron on the neck, face or scalp of a client by the beautician.
- The client is just unhappy with the treatment or the result.
- An accident includes cuts and bruises the client receives during treatment.
Product Liability Insurance
This is protection for the salon owner from the financial costs of a lawsuit when a product used by them has an undesirable effect on a client. This is similar to public liability insurance but is specific coverage for the products used by clients.
- An acid peel treatment goes bad because the concentration is incorrectly marked on the bottle.
- Any manufactured defective product which the client has injured the salon or sold to the client to be used at home.
All of the above policies protect the salon owner with coverage of the medical bills of the client along with the legal fees and settlement any court awards the client.
There are different upper limits in this type of coverage. The higher the upper limit is the better the coverage. Thiscoveragereduces the concerns by the salon owner about the financial stability of their business.
Comprehensive Property and Content Insurance Policy
All salon owners must carry property insurance to cover the building and the contents of the building. A comprehensive policy will protect against fire, theft and other damage caused by natural events. The above policies can be incorporated into the comprehensive policy, but that has to be asked for and is not standard.
Workman’s compensation insurance is required by law for any salon with employees.
Equipment breakdown insurance is advised to cover the cost of repairs of major equipment when they malfunction.
- Tanning beds
- Blow dryers
- Barber chairs
- Saunas
- Spas
By having this coverage the finical cost of equipment breaking down is covered so immediate replacement is possible.
Understanding the different types of coverage and how they protect the salon owner is important for the financial stability of the salon as a business.