Glamorous Protection: Types of Insurance Coverage for Beauty Supply Shops
Running a beauty supply shop comes with many responsibilities: inventory, marketing, management, and so much more. With so many day-to-day activities, it can be easy to neglect other needs of your business that might not feel urgent, like business insurance.
While this might seem harmless from the surface, not having beauty shop insurance can be very risky and expensive in the long run. This guide can help you understand why you might want to consider business insurance, which types of coverage you should think about, and how to get a policy.
Beauty Shop Insurance Options
When choosing business insurance, one of the most important factors to consider is the risks you are likely to encounter when managing the day-to-day. This can vary from one shop to another depending on the number of employees, tools used, and the location of your business.
Some of the general benefits of having insurance coverage may include:
- Helping to minimize the financial losses that come with recovering from accidents
- Increased business credibility (customers and investors typically prefer working with an insured business)
- Avoiding bankruptcy from lawsuits
- Helping to protect your business from the unexpected (such as fires and wind damage)
- Helping to protect employee and customers if they become injured
- Helping to protect your inventory, furniture, and other assets
If you're not sure where to start, consider applying for the following insurance packages first, and adding additional coverage options as you grow.
Business Owners Policy Insurance
A Business Owners Policy (BOP) is a special insurance package that combines several types of protection in one convenient policy. While a BOP may not be the only insurance you want to consider for your beauty supply business, it can help get the ball rolling.
Cyber Risk Insurance
Research shows that 60% of small companies close within six months of a cyber-attack, with the cost of cyber-attack recovery continuing to rise. Proving that small businesses have become a lucrative income source for hackers.
Beauty shops, like almost any business, can be vulnerable to cyber threats such as ransomware, phishing attacks, and data breaches. Cyber insurance helps cover the costs associated with recovering from these attacks.
If your beauty shop collects and stores customer information, such as names, addresses, and payment details, you generally have a responsibility to help protect this data.
In the event of a data breach, cyber insurance can cover the costs of notifying affected individuals, providing credit monitoring services, and helping to address legal liabilities.
Moreover, a cyber-attack can damage the reputation of your beauty shop. Cyber insurance can cover expenses related to public relations efforts, communication strategies, and other measures to help mitigate the impact on your business's image.
General Liability Insurance
Liability insurance provides coverage in case accidents happen in your shop. For example, if a customer slips and falls or is injured while in your beauty shop, this insurance can cover medical expenses and legal fees associated with the incident.
Liability insurance can also cover damage to third-party property caused by your business activities. For instance, if a customer's personal belongings are damaged while in your beauty shop, your liability insurance may help to cover the costs of repair or replacement.
Having liability insurance can also build trust with your customers. It shows that you may be prepared to handle unforeseen circumstances and take responsibility for issues that may come up during business operations.
Property Insurance
Property insurance provides coverage for the physical assets of your beauty shop, including equipment, inventory, furniture, and fixtures. This coverage helps safeguard your business in case of events like fire, theft, vandalism, or natural disasters.
In the event of a covered loss, property insurance helps ensure that the financial burden of repairing or replacing damaged or stolen property doesn't fall solely on your business. This can be especially important if your beauty shop has limited financial resources.
Some policies also include business interruption coverage. This can help compensate for lost income and operating expenses, if your beauty shop has to temporarily close due to a covered event.
For example, if your shop is damaged in a fire and needs time for repairs, business interruption coverage can help you cover ongoing costs.
Property insurance can also cover stolen, damaged, or lost business property. This could be your cash registers, beauty products, or furniture.
Knowing that your physical assets can be protected by property insurance can help you achieve peace of mind. It could allow you to focus on running and growing your beauty shop so you can worry less about potential financial losses from unforeseen events.
Workers' Compensation Insurance
Workers' Compensation insurance can cover your employees' wages, medical costs, and other expenses that might result in illness or injury while working. Having insurance coverage can help protect you from these extra financial costs.
In many jurisdictions, having Workers' Compensation insurance is a legal requirement. Failure to comply with this requirement can result in penalties, fines, and lawsuits.
Without Workers' Compensation insurance, you may be exposed to legal action from employees who suffer work-related injuries. Having coverage can help mitigate this risk by providing a structured process for addressing workplace injuries.
Moreover, many professionals prefer to work for companies that offer Workers’ Comp insurance. Offering Workers' Compensation coverage helps demonstrate to your employees that you prioritize their well-being. This can boost morale and can contribute to a positive work environment. Knowing they could be protected in case of an injury or illness can also enhance employee retention.
Here are some of the most common issues Workers’ Compensation insurance can cover:
Medical Expenses
When an accident occurs while working, your Workers' Compensation policy may cover ambulance costs, emergency room fees, and medical expenses.
Depending on the extent of the injuries, your insurance provider might conduct an evaluation, and if your employee is eligible for extra care, it can cover it.
This could include hospital stays, surgeries, and medications, among other costs. Moreover, if ongoing care such as physical therapy is recommended, insurance can help to cover the cost.
Lost Wages
If an employee is unable to work due to a work-related injury or illness, Workers' Comp can provide partial replacement for lost wages. This can help them focus on recovering from the accident and allow them to worry less about covering expenses.
Should a need arise, a BOP can make it easy to work closely with your insurance provider to facilitate a smooth process for employees in need of financial support during their recovery.
Home-Based Business Insurance
Homeowners insurance typically doesn't cover business-related property. If your beauty shop equipment, supplies, or inventory are damaged, home-based business insurance can help cover the cost of replacement or repair.
Home-based business insurance from PolicySweet also provides liability coverage, which can help protect you in case of lawsuits arising from accidents or third-party injuries that occur on your premises while conducting business.
Home-based business insurance could also help cover the cost of replacing or repairing the damaged items, helping to ensure that you can continue your business without a significant financial setback.
How Can PolicySweet Help You With Your Business Insurance Needs
One of the biggest concerns of the traditional insurance process is the time it takes to sign up and receive coverage. If you're looking to quickly get coverage, then PolicySweet® can help. We strive to make the entire process for beauty shop insurance short and sweet.
Apply for coverage in as little as three steps. You tell us about your business. We give you a free quote in as little as 5 minutes (no strings attached). If you're happy with the terms, you can accept the quote for immediate coverage.
Ready to help protect your business? Start a quote right now.