There are hundreds of privately owned barber shops in Arizona. If you have recently opened one of your own, congratulations on your new business venture. Barber shop insurance can help your business stay profitable in times of trouble.
Local independent agents are available to help with all of your insurance needs. These agents can explain your various coverage options and can provide you with customized quotes from a few competing providers. That way you can be sure you are getting your coverage at a competitive price.
Contact an independent insurance agent near you to get started.
What Is Arizona Barber Shop Insurance?
Every year, disasters and accidents occur that can cost Arizona businesses a lot of money. In fact, in one recent year, businesses in this state collected more than $6.9 billion in business insurance claims.
How Much Does Barber Shop Insurance Cost in Arizona?
The cost of barber shop insurance can vary from one shop to the next. Rates are based on factors such as the following.
- The size of your business and its annual revenues
- The number of people you employ
- The value of your barber shop’s assets
- Whether you own or rent your business space
- The crime rate and weather risks where your business is located
For the most part, barber shop insurance is very affordable. This is because these shops typically have low overhead and few potential risks. To find out how much a policy will cost for your business, you will need to contact a few insurance companies to request customized quotes.
What Does a Business Owners Policy Cover?
When you are preparing to open a new barber shop, chances are good that your insurance agent or financial advisor will recommend covering it with a business owners policy.
Your BOP can provide you with the following.
General liability insurance is designed to pay for court costs, legal fees, mediation costs, settlements, judgements, and other related expenses if your barber shop is sued for a covered event. General liability insurance includes the following.
- Product liability insurance: This can cover expenses if a shampoo, hair wax, or other product you sell in your shop causes customers to experience an injury, illness, or other harm.
- Premises liability insurance: This can cover medical costs and other expenses if a customer is injured or sustains property damage in an accident at your barber shop, such as if they slip on a wet floor.
- Advertising liability insurance: This can cover your barber shop against accusations of copyright infringement, deceptive pricing, false advertising, or other marketing errors.
- Coverage against accusations of libel and slander
Commercial property insurance is designed to cover the cost of repairing or replacing your barber shop’s property and assets if they are lost or damaged due to a covered event such as the following.
- Property crimes
- Accidental fires
Business interruption insurance is designed to provide your business with a continuation of income if it must shut down for an extended time while repairs are made following a covered disaster like a structure fire. These funds can then be used for regular business expenses such as the following.
- Rent or commercial mortgage payments
- Employee salaries
- Commercial loan installments
- Regular monthly bills
With these three types of coverage, your business owners policy can protect your business against many of the risks it is likely to encounter in Arizona.
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What Additional Liability Insurance Products Are a Good Idea for Arizona Barber Shops?
General liability insurance may not be enough to fully cover your barber shop against all of its liability exposures. You may therefore want to consider adding some additional business liability insurance products such as the following.
- Professional liability insurance: This can protect your barbers if an unhappy client sues them for doing a poor job that causes them physical, emotional, or monetary losses.
- Employment practices liability insurance: This covers your barber shop against accusations of illegal employment practices such as harassment, discrimination, or wrongful termination.
- Cyber liability insurance: This can cover your business’ financial obligations to affected individuals if hackers break into your company’s computer system and steal their person or financial data. It can also cover liabilities if criminals successfully install skimmers on your credit card readers.
Does My Arizona Barber Shop Need Any Additional Types of Property Coverage?
Commercial property insurance doesn’t cover against all the risks you could potentially face as the owner of a barber shop in Arizona. You may therefore want to consider adding policies such as the following.
Flood insurance is a good idea in Arizona. Although this state is known for its arid climate, all bets are off during monsoon season, which runs from June 15 through September 30. During this time, heavy rainfalls can bring widespread flooding throughout the state.
You can purchase an affordable commercial flood insurance policy through the National Flood Insurance Program (NFIP), which is administered by FEMA.
Earthquake insurance may be a good idea for some businesses in this state. While seismic events are relatively rare in Arizona, they do happen thanks to the many fault lines in and near this state.
To be covered against damage caused by earthquakes, you will need to purchase this specialized coverage.
Wildfire insurance may be an important addition if your barber shop is located in an area with a high risk of wildfire activity.
In Arizona, some commercial property insurance policies may limit coverage against wildfires or may not cover against this hazard at all. It is important to review what your BOP policy will and will not cover when deciding whether to supplement it with additional fire insurance.
Do Barber Shops in Arizona Need to Carry Workers' Compensation Insurance?
Workers’ compensation insurance is designed to cover the cost of medical treatments and disability pay if your employees are injured on the job. This can really come in handy if one of your barbers gets a cut that requires stitches or is otherwise hurt while working and needs to take time off to recuperate.
If your barber shop has employees, you are required by Arizona state law to carry workers’ compensation insurance. This is true even if you just have one part-time employee or only employ family members.
However, if all of the barbers in your shop are working as independent contractors rather than as your employees, you will not need to purchase coverage for them.
How Can an Independent Insurance Agent Help Me Find the Best Coverage?
Independent insurance agents live and work in your community, so they are familiar with the risks you face as a barber shop owner in your Arizona city. These agents can shop around to find you the best and most affordable policies to cover against each of these risks.
There are more than 400 independent agents in Arizona who are ready to help. Arrange an obligation-free consultation with an insurance agent near you to find out how easy it can be to get great coverage for your business.