Understanding BOP for Barbershops
Did you know that barbershops have been around for centuries? As a barbershop owner, you likely know how important your business is for providing people with much-needed haircuts and a place to socialize. However, there's an element that you might want to take into consideration when forming your barbershop - insurance.
A Business Owners Policy can protect you and your company in unforeseen circumstances. Accidents like slips and falls or other injuries involving customers can wreak havoc on your business. Help safeguard yourself by obtaining barbershop insurance.
This blog will discuss the basics of a Business Owners Policy and why you may want one for your barbershop.
What Is a Business Owners Policy?
A Business Owners Policy is referred to by its acronym BOP. One of the great things about a BOP is that it combines several business insurance coverages into one central policy.
You may be able to spend less time getting quotes and hunting down the best offers for various kinds of commercial insurance by getting one policy. Help protect your business and yourself from many risks with one convenient policy.
The three primary branches of coverage included in a BOP from PolicySweet® are:
- Property insurance
- Cyber-risk coverage
- General liability insurance
Remember that you may want to explore adding other policies on top of a BOP. For example, you may want to get Workers' Compensation coverage if you have employees.
Property Insurance
Business property insurance is designed to help protect your business's physical assets. This can be especially important for barbershop owners. You've likely purchased high-quality tools and equipment for your shop that need protection.
Some of the things a commercial property insurance policy can cover include:
- Tools
- Fixtures
- Furniture
- Equipment
Your property insurance can cover things that are either owned or rented by your business. It can pay to replace or repair lost, stolen, or damaged property.
Another helpful feature of commercial property insurance is that it can cover loss of income your business experiences related to property damage. This applies to scenarios where your barbershop can't operate at its full capacity because of the loss you experience. The loss needs to be something that's covered by your property insurance to qualify.
Business property insurance can also provide your barbershop with payroll and operating expenses. This can help reduce profit loss up to your policy's limits during this period of time.
Why Do I Need Property Insurance?
Your barbershop may not be able to take a major financial hit if you experience loss without having property insurance in place. You may want to consider this type of coverage if you meet one or more of the following criteria:
- You rent or own tools for your barbershop
- You have physical assets that would be expensive to replace
- You store inventory at your barbershop
Ask yourself if your business could replace equipment or inventory after an unexpected event. If you can't, you may want to consider exploring a BOP.
Cyber Risk Insurance
Small businesses, even barbershops, have a high risk of getting hit with a cyber-attack. Around 41% of small businesses encountered a cyber event in 2023. Cyber risk insurance can give you the financial protection you might need if you are targeted by hackers.
Cyber liability insurance can protect your barbershop against computer-related losses and crimes, such as:
- Network security attacks
- Data breaches
- Spyware infiltration
Your barbershop business could be liable for the costs related to a cyber incident involving your business. This insurance policy could help cover these related expenses and legal fees, if necessary.
Some of the costs that may be covered include:
- Customer notification costs
- Investigation expenses
Why Do I Need Cyber Risk Insurance?
You may think that because you run a barbershop, you might not need cyber risk insurance. However, your business likely stores sensitive information in its database. This information may not only be related to your business, but you could also store customer data.
You may want to look into cyber risk insurance if you store or handle the following types of information:
- Bank or credit card information
- Addresses
- Customer names
- Email addresses
- Phone numbers
Cyber risk insurance can be helpful if you accept digital or credit card payments, or if you use mobile devices or computers. You may want to consider it, if you digitally store your employees' information too.
General Liability Insurance
Other terms for general liability insurance include commercial or business liability insurance. Most self-employed individuals and small businesses purchase this type of policy. It can provide you with protection against a wide range of risks and claims.
General liability insurance helps to provide you with coverage for the following things:
- Reputational harm
- Advertising injuries
- Third-party bodily damage
- Third-party bodily injuries
- Slander or libel accusations
One thing to keep in mind is that general liability insurance doesn't protect your employees. As we mentioned earlier, you might want to consider a Workers' Comp policy if you have employees or staff. This type of insurance can cover the cost of injuries or illnesses your employees receive while at work.
Additionally, general liability insurance doesn't protect your physical property. That's why purchasing a BOP can be a great option. Multiple aspects of your barbershop could be covered with a BOP, from your equipment to your customers who walk in the door.
Why Do I Need General Liability Insurance?
There are many reasons you might want to consider a general liability insurance policy, such as:
- You deal with customers face-to-face
- You market or advertise your company
Help protect your business from third-party claims with general liability insurance.
Request a Free Quote for Barbershop Business Owners Insurance
A Business Owners Policy can help protect your barbershop from a wide range of risks. You can ensure your barbershop is covered on multiple fronts by choosing a BOP.
The commercial insurance experts at PolicySweet are available to make purchasing a policy easy. Get started with your online quote today. We're also here to answer questions you might have or to help guide you through the process.