As a salon owner or manager, you need to make sure you buy the best insurance for your salon and that it protects you, your team, your business, and your clients should an incident occur. Here, we explain the different types of insurances a salon needs and outline what coverage is offered with each option.
The nature of what goes on in one salon to another might change, but for the most part, the salon insurance you need to buy is mostly the same. So, whether you are a hair salon, a nail salon, a beauty salon, or a mixture of all, read on to find out where you stand and what types of salon insurance you need to buy.
This is usually a combination of 2-3 of the most popular insurance products that almost any commercial company will need to buy. These are General liability coverage and business property insurance. Some salon insurance companies might also include business interruption protection as well.
When combined, these three types of coverage will protect you from third-party claims for property damage or personal injury, along with covering the inventory, equipment, and physical business premises. If business interruption coverage is also included, this could help you recover lost profits, should your business be unable to operate due to a covered event.
Buying the right type of liability coverage for your salon’s services is key. It is also known as professional indemnity coverage, or errors and omissions insurance. This coverage will give you protection should a client decide to take out a lawsuit against you due to negligence, quality of service, or any other issue that is related to the delivery of your professional services.
As a salon, you keep personal information about your client on file. Whether you use a website to store this data, booking, or customer management software or you’re still on paper, you have a responsibility to safeguard that information. If your company data is compromised, be that from a rogue employee, a cyber attack or a data leakage, you are liable to pay the costs to put things right.
Did you know that you are now legally obliged to inform any affected parties, and give them ongoing credit monitoring services?
If you face a lawsuit from a client as a result of the breach, there is also the cost of legal defense and any settlements to cover as well. Buying this type of insurance for your salon could help you avoid a serious financial crisis.
It’s a well-known fact that almost every salon with sell products to their customers. What most salon owners do not always realize is that should a product you use, sell, make or distribute cause an adverse reaction to a client, you, as the salon, become liable for that product and any subsequent legal action that may follow.
If you have a team that works for you, then you will need to buy salon insurance for their exclusive needs. Workers Compensation coverage is something you are required to have under state law. This will pay for any medical care should one of your team have an accident at work or develop a work-related injury. Employment Practices Liability Insurance is another type of insurance for salon owners; this offers protection should an employee decide to take legal action against you. This type of insurance is also known as EPL coverage.
If your salons drain or sewers back-up into your property, this can have a devastating effect, and in most cases, it results in a temporary closure while the clean-up operation takes place and any damaged materials. Because backed-up sewers are excluded from most standard insurance policies, this type of insurance for salons is considered essential.
Buying Salon Insurance Coverage?
If you need to insure your salon, then talking to a commercial insurance provider can give you the expertise you need to be able to make a fully informed decision about the best coverage options for your business. It can also help you to get the best salon insurance at the right levels and a fair price.