Barbers and Barbershops need to buy insurance for protection against the risks you deal with on a daily basis at times. Whether you work alone, you rent a chair in someone else’s salon, or even if you work from home as a barber, there are certain types of insurance you need to have in order to operate your business.
Barbers face a lot of unique risks. As the person in charge of a business, there are the obvious employment-related needs that you will required insurance coverage for; namely, as workers compensation, employment practices liability or employment benefits liability; but more so, you have the public side of your business which requires you to have barbershop liability coverage, auto insurance for mobile barber services, and a standard business owner policy to consider as well.
Here are some of the common types of barber insurance you should consider if you own a barbershop, you provide mobile barber services, or you work as a freelancer barber in someone else’s salon or barbershop.
A business owner's insurance policy for barbers will typically combine three key types of insurance into a single policy. These are commercial property, business income, and general liability coverage. A business owner policy for a barber helps to protect their business in the same way a homeowner policy works to protect a house. Buying three types of barbershop business insurance together can often help to lower the cost while ensuring adequate protection for the most common risks.
General Liability Insurance for Barbers
This type of insurance coverage for a barbershop business could help to protect your company from legal action if somebody was to claim that your business caused injury to their person or property. In a barbershop, this could simply be a case of somebody tripping over on a floor that has just been cleaned or is wet; or for somebody providing mobile barber services, this insurance coverage will cover any potential damage that might be caused to a person’s property when you visit to carry out your business services.
Please note: a general liability policy or general liability coverage that forms part of a BOP for barbers will not typically provide coverage for any claims that may arise from the professional services you offer (cutting and grooming).
So, if you want to buy insurance for a barber that covers any claims that relate to this aspect of your business, you will need to look for a professional liability policy as well.
Business Income Insurance for Barbers
Buying business income insurance for a barber or a barbershop will give you a level of protection which can help to replace any income you lose should you be unable to open your shop because of ‘covered’ damage, such as a fire.
Commercial Property Insurance for Barbers
This type of insurance will cover the inventory and equipment in a barbershop, as well as the building itself. This applies to leased business equipment as well as the equipment that you own outright.
Regardless of the type of system you use, be it on paper or digitized; you will store your client information somewhere. And, as a business or entity which holds personal information, you have a duty of care to protect that data. This doesn’t just apply to your clients, and it also includes your staff and your suppliers too. The typical kinds of data kept on file could include names, addresses, phone numbers, emails, credit or debit card numbers, bank account details and more.
Buying this insurance for your barbers means that you get coverage to help you deal with the management and associated costs of the breach.
Aside from these obvious costs of a data breach to your barbers, you are also open to lawsuits that could further harm your reputation and your bottom line. Buying data leakage insurance for a barbershop is relatively low-cost, and it can prevent you from having to pay for the above independently should a breach occur.
As a barbershop, freelancer, or mobile barber, you use sharp equipment and sometimes chemicals too. Regardless of how careful you are, accidents can happen to anyone at any time.
Professional liability coverage for barbers covers you in the event a client takes legal action, and demands money for damages or expenses. It can give your business the financial protection you need and safeguard your assets while covering the costs for your legal defense should you be sued.
Barbershop professional liability coverage is also called E&O, or errors and omissions coverage. Even if you were not negligent in the services you provided, you would still need to cover the costs of your legal defense.
Please note: If you buy barbershop insurance for professional liability coverage, most policies are provided on what’s known as a ‘claims-made’ basis. This gives a specific time frame from the ‘act’ happening, such as 1 year, where a claim is covered. For barbershops, it’s highly unlikely a customer would take action after such a prolonged period.
If you need to buy barbershop insurance, working with a specialist barber insurance expert can help you navigate these finer details with ease.
If you employ staff in a barbershop, there are a number of different policies you will need to consider.
Workers Compensation Coverage
This will give your staff protection should they incur a work-related injury or illness. Some of the benefits include a partial replacement of any wages they lose out on while they receive treatment and recover. It also pays for their medical care in full.
Employee Benefits Liability
This will provide insurance for your barbershop should an employee decide to sue you because they claim you mismanaged the administration relating to their company benefits plan.
Employment Practices Liability for Barbers
If you are faced with legal action from a current or former employee, the costs for your legal defense, not to mention any settlement, can soon add up. This type of insurance for your barbershop can cover you in the case of legal action for harassment, discrimination, wrongful termination, or retaliation. This insurance is also commonly referred to as EPL.
If you work out a fixed location, this could be a type of insurance you need to consider seriously. Clogged drains are fairly commonplace in barbershops, but if a clogged drain leads to a more serious problem and there is water damage in your building, then buying this insurance for your barbers may help you cover the cost of a clean-up.
If you sell products in your barbershop, and one of those products causes harm to a client, then they can potentially sue you for damages. Contrary to popular belief, it is not the manufacturer of the products alone who are at risk if one of the products you resell causes an allergic reaction or causes any other type of harm. Buying product liability coverage for your barbers can help you cover the legal fees involved with such a lawsuit.