The hairstyling business is strong in Arizona. It employs about 9,000 people in this state, with the highest concentration in the Phoenix-Mesa-Scottsdale metropolitan area.
Every year, businesses face disasters and accidents that can prove very expensive for the uninsured. In fact, in 2019, businesses in Arizona collected nearly $7 million in insurance claims. Some of these claims were filed by owners of hair salons.
Local independent insurance agents can help you be certain that your business is suitably covered against all of its potential risks. Set up a one-on-one consultation with an insurance agent near you to learn about hair salon insurance.
What Can Go Wrong at a Hair Salon?
There are a number of mishaps that can occur at a hair salon, most of which could result in large financial losses for your business if it is not properly insured. How would your salon handle the associated costs if:
- A client slips on a wet floor near your shampoo station and suffers a serious head injury?
- A windstorm damages the front window of your shop, and many of your furnishings, equipment, and supplies are damaged beyond repair?
- One of your employees cuts her hand while doing a trim and, due to needing stitches, is unable to use scissors for ten days while her hand heals?
Talk to a local independent insurance agent to learn how hair salon insurance can cover against these and other potential risks.
What Is Arizona Hair Salon Insurance?
Hair salon insurance is a business insurance policy package that has been specifically customized to meet the coverage needs of businesses like hair salons, barbershops, and beauty parlors.
How Much Does Hair Salon Insurance Cost in Arizona?
The amount that hair salon owners can expect to pay for insurance can vary from one business to the next. Some of the factors that can influence premiums include:
- The size of your business and its expected annual revenues.
- The number of employees you have.
- The value of your salon’s assets.
- Whether you own or rent the building in which your salon is housed.
- The crime rate and weather risks in the ZIP code where your salon is located.
- The amount of liability coverage you want to purchase.
- Your claims history.
- The size of your deductible.
The only way to find out how much coverage will cost for your salon is by contacting a few competing insurance companies and requesting customized quotes. Independent insurance agents in Arizona can save you time and money by comparison shopping on your behalf.
What Does Arizona Hair Salon Insurance Cover?
A comprehensive business insurance policy for your Arizona hair salon will provide your business with the following coverage:
- Commercial property insurance: This is designed to cover your business property, including things like hydraulic lift chairs, hooded dryers, styling equipment, supplies, décor, computers, and more. It can pay to repair or replace this property if it is lost or damaged by a covered event like a fire, theft, or severe weather.
- Business interruption insurance: This is designed to provide your business with a continuation of income if it must temporarily shut down while repairs are made following a covered event.
- Workers’ compensation insurance: This insurance is required by law in Arizona if your salon has at least one employee. It is designed to cover medical treatment for on-the-job injuries or occupational illnesses, as well as provide injured employees with paid time off if they need time to recuperate.
- Business liability insurance: This is designed to cover court costs, legal defense fees, settlement costs, judgments, and other damages if your hair salon is sued for a covered event. There are many different types of commercial liability insurance available.
A local independent insurance agent can help you build a hair salon insurance policy package that includes all the coverage your business needs.
Do I Need Any Specific Liability Coverage for My Arizona Hair Salon?
Business liability insurance can save your hair salon a lot of money if it is sued, but you need to make sure you have the right policies in place if you want to be covered.
Your insurance agent may recommend the following commercial liability coverage products:
- Commercial general liability insurance: Often referred to as “CGL,” this standard liability insurance is designed to cover against many of the most common liability risks faced by businesses. Its coverage includes:
- Professional liability insurance: Also referred to as errors and omissions insurance, this is designed to protect your stylists if a client sues due to a poor job that results in physical, emotional, or monetary losses.
- Cyber liability insurance: This is designed to cover your salon’s obligations to clients if cybercriminals hack into your computer system and access customer information such as names, addresses, and credit card numbers.
- Employment practices liability insurance: Also referred to as “EPLI,” this is designed to cover your business against accusations of illegal employment practices such as sexual harassment, discrimination, intentional infliction of emotional distress, or wrongful termination.
Let a local independent insurance agent help you review your hair salon’s liability exposures and recommend the right kinds of insurance to cover against them.
What Isn't Covered by Hair Salon Insurance?
It is important to be aware that while damage caused by most severe weather events are covered by your hair salon’s commercial property insurance, some hazards are not. These include:
- Damage caused by floods: Flash flooding is a very real risk during Arizona’s monsoon season, and the resultant damage can be expensive. Fortunately, a local insurance agent can help you obtain up to $500,000 in both contents and structural coverage with a commercial flood insurance policy through the National Flood Insurance Program (NFIP).
- Damage caused by landslides/mudslides: Most of the time, damage caused by earth movement due to landslides and mudslides is the direct result of flooding, and as such would be covered by your commercial flood insurance if you carry a policy.
- Damage caused by earthquakes: Though the risk of earthquake activity in Arizona is nowhere near as high as in neighboring California, it does pose a threat in some parts of the state. If you want your hair salon to be covered against this risk, your agent can help you supplement your property insurance with an affordable earthquake insurance policy.
A local independent agent can help you assess your flood and earthquake risks, and, if appropriate, can help you secure competitively priced policies to cover against them.
How Can an Independent Insurance Agent Help Me Find the Best Coverage?
Independent insurance agents can help you identify all of your salon’s potential risks and can recommend the best and most affordable insurance products to cover against each of them. That way, you do not need to worry that your business has any unintended coverage gaps.
Because these agents are not tied to a particular insurance company, they are free to shop around to help you find the policies you need at the most competitive prices. There are more than 400 independent agents in Arizona. Contact an insurance agent near you to get started.
TrustedChoice.com Article | Reviewed by Jeffrey Green
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