If you are the proud owner of a beauty parlor or barber shop in Maryland, having the right hair salon insurance can help it stay profitable in the wake of an accident or disaster.
Local independent agents are available to help you with all of your coverage needs. These agents can answer your insurance-related questions and can provide you with customized hair salon insurance quotes from a few competing providers.
If you are ready to begin your search for comprehensive, yet affordable, insurance for your hair salon, contact an independent insurance agent near you.
What Is Hair Salon Insurance and Why Is It Important in Maryland?
Disasters and accidents in Maryland can be very costly for area businesses. In one recent year, for instance, businesses in Maryland collected nearly $7.6 billion in insurance claims.
By having the right hair salon insurance products in place, you can rest assured that disaster-related incurred costs are covered so your businesses can stay profitable.
How Much Does Hair Salon Insurance Cost in Maryland?
Business insurance rates can vary from one hair salon to the next. Premiums are based on a variety of factors, such as the following.
- The size of your hair salon and its expected annual revenues
- Whether you own or rent the building in which your business is housed
- The value of your hair salon’s property and assets
- The number of workers you employ
- The crime rate and weather risks where your salon is located
- Your salon’s business insurance claims history
To find out how much a policy will cost for your business, you can contact a few competing insurance companies to request customized quotes.
What Does a Business Owners Policy (BOP) Cover?
For most small, privately owned hair salons, purchasing a business owners policy and supplementing it with any additional policies that are necessary is the most cost-effective way to get full coverage for their business.
The coverage provided by a BOP includes the following policies.
- Commercial general liability insurance (CGL): If your salon is sued for a covered event, this can cover expenses like court costs, legal fees, settlements, and judgements. General liability insurance includes the following.
- Product liability insurance: This covers your salon if a product it sells causes people to experience illness, injury, or other harm.
- Premises liability insurance: This covers your salon if somebody is injured in an accident on your business premises.
- Advertising liability insurance: This covers your salon against accusations of copyright infringement, false advertising, deceptive pricing, and other marketing errors.
- Coverage against accusations of libel and slander
- Commercial property insurance: If your business owned property is lost or damaged by a covered event, this can cover the cost to repair or replace it. Covered events the following risks.
- Business interruption insurance: If your hair salon must close down for an extended time while repairs are made to damages caused by a covered event, this can provide a continuation of income so your business can continue paying regular expenses such as the following.
- Rent or commercial mortgage payments
- Employee salaries and wages
- Loan installments
- Relocation expenses if it is necessary to move to permanently move to a new location
The three types of coverage offered by a standard business owners policy can protect your hair salon against many of the risks it is likely to encounter as a business in Maryland.
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What Additional Liability Insurance Products Are a Good Idea for Maryland Hair Salons?
Commercial general liability insurance provides a lot of coverage but relying on CGL alone will not cover your hair salon against all potential liability risks.
Supplementing your BOP with additional liability products can therefore prove quite beneficial. Some of the commercial liability policies you may want to consider include the following.
- Errors and omissions insurance: This professional liability insurance can cover your stylists if they do a poor job that causes their clients to suffer physical, emotional, or monetary losses and they are sued.
- Employment practices liability insurance: This can cover your salon against accusations of illegal employment practices such as discrimination, harassment, retaliation, and wrongful termination.
- Cyber liability insurance: This can cover your hair salon’s financial obligations to affected individuals if cybercriminals manage to access your clients’ or employees’ personal or financial data that you have stored electronically.
By carrying the right kinds of liability coverage, you can fully protect your hair salon against all potential liability risks.
Why Consider Buying Commercial Flood Insurance?
Commercial property insurance will not cover property loss or damage if it was caused by a flood. This is true even if the flood is the direct result of a covered hurricane or storm. Unfortunately, floods can cause excessive property damage.
Therefore, depending on your hair salon’s location and assessed flood risk, you may want to look into supplementing your business insurance with an affordable flood insurance policy through the FEMA-administered National Flood Insurance Program (NFIP).
Business owners can purchase up to $500,000 in structural coverage and up to $500,000 in contents coverage with a commercial flood insurance policy.
Are Hair Salons in Maryland Required to Carry Workers’ Compensation Insurance?
Any business that has at least one employee is required by Maryland state law to carry workers’ compensation insurance.
If you are a sole proprietor, you do not need to buy coverage for yourself but can if you want to. Also, if you rent chairs to stylists in your salon and they are working as independent contractors rather than employees of your salon, you do not need to purchase coverage for them.
Workers’ compensation insurance is designed to protect your employees and your business by covering the cost of medical treatments and disability pay if your workers are injured on the job, such as if they slip on a wet floor or accidentally cut themselves with scissors
How an Independent Insurance Agent Can Help You Find the Best Coverage
When you are looking for the right hair salon insurance products, an independent agent can help. These local agents can assist you with identifying your business’s various exposures and can shop around to find the best and most affordable policies to cover against each of them.
Find out how easy it can be to get appropriate and affordable coverage for your hair salon. With more than 200 independent agents operating in Maryland, it should be easy to arrange an obligation-free consultation with an experienced insurance agent near you.
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