The hairstyling business is a booming one in Colorado. It employs about 3 out of every 1,000 working adults in this state with the highest concentration in the Boulder area.
Every year, disasters and accidents occur in Colorado that can cost businesses big money. In fact, in 2019, businesses in Colorado collected $8,800,495,000 in business insurance claims. Some of these claims were filed by owners of hair salons. That is why hair salon insurance is so important.
If you own a salon in Colorado, a local independent insurance agent can help you be certain that your business is suitably covered against all of its potential risks. There are more than 250 independent agents in Colorado so it should be easy to find an insurance agent with an office near you to learn more.
What Can Go Wrong at a Hair Salon?
As with any business, there are things that can go wrong at a hair salon. Take a look at the following.
- What if a customer in your hair salon slipped on a wet floor near your shampoo station and suffered a significant back injury?
- What if a tornado tore the roof off your salon and your furnishings, equipment, and supplies were damaged beyond repair?
- What if a stylist in your shop needed stitches after cutting her hand while working and was unable to use scissors for two weeks while it healed?
There are a number of problems that can arise at your hair salon that could cost your business big bucks if you are not properly insured. That is why you may want to consider investing in hair salon insurance.
What Is Hair Salon Insurance?
Hair salon insurance is a fully customizable business insurance policy package that is specifically designed to meet the coverage needs of barbershops, hair salons, and beauty parlors.
How Much Does Hair Salon Insurance Cost in Colorado?
Hair salon insurance costs can vary from one business to the next. Factors that can influence premiums include the following.
- The size of your business and its annual revenues
- The number of people you employ
- The value of your company’s assets
- Whether you own or rent your business space
- The crime rate and weather risks in the ZIP code where your business is located
- Your business’s claims history
- The amount of coverage you are purchasing
- The size of your deductible
The only way to find out how much a policy will cost for your Colorado business is to contact a few competing insurance companies and request customized quotes. Local independent insurance agents can save you time by doing this on your behalf.
What Does Hair Salon Insurance Cover?
A well-built business insurance policy for your Colorado hair salon will supply your business with the following coverage.
- Commercial property insurance: This can cover your business property including hydraulic stylist chairs, hooded dryers, styling equipment, supplies, décor, computers, and more if it is lost or damaged due to a covered event such as severe weather, a fire, or theft.
- Business interruption insurance: This can provide your business with a continuation of income if it must close down temporarily while repairs are made following a covered event.
- Workers' compensation insurance: This is required of all employers in Colorado. It is designed to cover the treatment of work-related injuries or occupational illnesses as well as lost wages if your injured workers must take time off to recuperate.
- Commercial liability insurance: This is designed to cover court costs, legal fees, settlement costs, awarded judgements, and other damages if your businesses is sued for a covered event. There are many types of commercial liability insurance available.
A local independent insurance agent can help you build a hair salon insurance policy that provides your business with all of the coverage it needs.
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Do I Need Any Specific Liability Coverage for My Colorado Hair Salon?
Liability insurance can save your salon a lot of money if you find yourself on the wrong end of a liability lawsuit, but you need to make sure you have the right liability coverage in place if you want to be covered.
Some of the commercial liability insurance products your insurance agent will likely recommend include the following.
- Commercial general liability insurance: Often referred to simply as CGL, this insurance can cover against many of the most common liability risks faced by business. In addition to covering against accusations of libel and slander, it also provides the following.
- Professional liability insurance: Also referred to as errors and omissions insurance, this can protect your stylists if an unhappy client sues them for a poor job that results in physical, emotional, or monetary losses.
- Cyber liability insurance: This can cover your business’s obligations to clients if your computer system is broken into and cybercriminals access customer information such as names, addresses, and credit card numbers.
- Employment practices liability insurance: This covers your business if a current, former, or prospective employee sues you for illegal employment practices such as sexual harassment, discrimination, retaliation, 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 appropriate insurance products to cover against them.
What Is Not Covered by Hair Salon Insurance?
It is important to be aware that while damage caused by severe weather events are covered by your hair salon insurance, some hazards are not, such as the following.
- Damage caused by floods: Many parts of Colorado have an elevated risk of flood damage, but floods are specifically excluded from your commercial property insurance coverage. Fortunately, a local insurance agent can help you obtain up to $500,000 in contents coverage and up to $500,000 in structural coverage with a commercial flood insurance policy through the National Flood Insurance Program (NFIP).
- Damage caused by landslides/mudslides: Damage caused by earth movement due to landslides and mudslides are also excluded from commercial property insurance coverage. Most of the time these landslides are the result of flooding and would be covered by your commercial flood insurance policy.
Damage caused by earthquakes: Though the risk of earthquake activity in Colorado is low to moderate, it still exists. If your hair salon experiences property loss or damage due to a seismic event, you will need to have earthquake insurance in order to be covered.
If you would like to have coverage against these hazards, a local independent insurance agent can help you find the appropriate supplementary policies at an affordable price.
How Can an Independent Insurance Agent Help Me Find the Best Coverage?
Local independent insurance agents live and work in your community, so they are familiar with the hazards you face as a business owner in your Colorado city.
These agents can help you identify each of your salon’s potential risks and can recommend the right insurance products to cover against each of them. That way, you do not need to worry that your business has any unintended coverage gaps.
Also, because they are tied to a particular insurance company, independent agents are free to shop around to help you find the policies you need at the most competitive prices. Contact an insurance agent near you to get started.
TrustedChoice.com Article | Reviewed by Jeffrey Green
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