Types of Insurance Coverage for Hair Salons
Hair salons are a big business in the US, with several establishments nationwide. If you've got a piece of this pie, helping to protect your biggest assets with hair salon insurance can be important. Without coverage, your business could be impacted financially.
Get adequate insurance for hair salons, and you can protect your clients, staff, and property. Plus, you could achieve peace of mind, as threats, such as cyber security breaches, can affect businesses every day.
Let's explore the different types of hair salon business insurance you may want to consider.
Why Hair Salons Might Need Insurance Coverage
While many people love visiting the hair salon, they are potentially dangerous places. Workers and customers could be exposed to the following hazards:
- Sharp objects
- Hot styling tools
- Scalding water
- Chemicals
- Slippery floors due to cut hair or water spills
Thankfully, accidents can be rare. Yet still, almost every hair salon may want to consider insurance in the event of an unexpected incident.
Hair Stylist Health Challenges
Long hours of standing and working with their hands can put hair stylists at increased risk of workplace injuries. Workers' Compensation insurance is there to help protect staff and your business if they get injured or sick.
Help Protect Your Business Assets
Salons can keep a large amount of inventory on-site. Plus, the tools of the hair styling trade can be valuable. Replacing these assets can be challenging if you experience a fire, theft, or other disaster.
Understanding a Business Owners Policy (BOP)
A Business Owners Policy (BOP) is a package of three essential insurance coverages that are ideal for hair salons. It can include:
- General liability insurance
- Property insurance
- Cyber insurance
General Liability Insurance
Facing a lawsuit from a disgruntled client is one of the biggest challenges a hair salon can face. As well as severe reputational damage, medical bills, and settlements can put a huge financial strain on your business.
If a customer becomes injured, general liability insurance can come to your aid. Additionally, it can help cover instances of damage to a client's property, such as their clothing.
As well as potentially covering medical expenses, it can also cover:
- Legal defense costs
- Lawyers' fees
- Damages or compensation to the injured party
It's important to help ensure you have the correct level of coverage for the size of your business.
Property Insurance
Property insurance can cover the items your business owns or rents, such as hair care supplies, tools, and computer equipment.
Property insurance doesn't protect against normal wear and tear. However, it could help pay for replacement tools or inventory in the following situations:
- Theft
- Accidental damage
- Fire, wind, and other natural disasters
Some property insurance policies offer an additional feature: coverage for payroll and operating expenses.
If your business is affected by property damage or loss, property insurance can help to make up the shortfall. It may cover payroll and even certain operating expenses if your business cannot operate due to property loss. This means you may not have to pay for these expenses out-of-pocket.
Cyber Insurance
The latest technology can make it easy to book appointments and make payments electronically. However, this also means your business may store a lot of personal information that criminals would like to get their hands on online.
Businesses should consider both cybersecurity measures and cyber insurance. This can help protect you in the event of a cyberattack that results in data loss. It can cover the cost of informing your clients and paying experts to investigate the cause of a cyber incident.
The Importance of Workers' Compensation Insurance
In most states, some form of Workers' Compensation insurance is mandatory. It can protect workers if they get injured or sick, and their work is the direct cause of the harm.
For example, if a hair stylist gets sick due to exposure to chemicals at work, Workers’ Compensation may cover the following:
- Lost wages
- Medical expenses, including ongoing rehabilitation
- Medication costs
In the event an employee becomes severely injured at work, Workers' Compensation coverage may also provide support.
Help Protect Your Home Salon With HomeHQ
Many businesses in the United States operate at home. There are so many advantages to running a business from home. These include reduced overheads and convenience, but it can also come with some caveats.
One of these is that if you run your hair salon from home, your homeowners insurance may not cover aspects of your business. Instead, you may need a policy specifically designed to help cover home-based businesses like HomeHQSM.
It can provide some of the same coverages as a BOP package, including:
- Property insurance
- Liability insurance
- Stock insurance
An insurance package specifically designed for home-based businesses can help you achieve peace of mind. You can welcome clients into your home knowing they - and you – can be covered if an accident occurs.
Choose Hair Salon Insurance from PolicySweet
Don't let the potential risks of running a hair salon get you down. With adequate hair salon insurance, you can continue to run your business while worrying less about the impacts of unexpected events.
At PolicySweet®, we strive to make obtaining hair salon business insurance easy. You just need to answer a few questions and you’ll receive an instant quote for a policy. Your clients, workers, and assets can be protected in a matter of minutes.
Help protect your salon today by calling 1-800-625-8257 or by starting an online quote.