Wig shops typically sell wigs, hairpieces, toupees, hair extensions and hair accessories. Customers include anyone who is experiencing hair loss, as well as theater performers and anyone who enjoys frequently changing their hair style.
Wig shop owners face a variety of serious business risks, like shoplifting and theft, injuries in the store, property damage from fires or severe weather, and more.
Why Do You Need Wig Shop Insurance?
Wig shop insurance is necessary for any wig shop owner. It is designed to help you repair damaged property, replace inventory, and pay for any expenses if someone is injured in your store or as a result of one of your products.
Customers in your store can be injured at any time. Someone could slip on a freshly waxed floor, trip over something left in an aisle, or hit their head on a fixture.
When accidents like these happen, you’ll be responsible for paying for the person’s medical bills. If someone is seriously injured you could be sued for additional damages, and the costs to defend yourself could be insurmountable.
Wig shops are also a target for shoplifters and even employee crime. What’s more, smoke, fire, or severe weather can damage your inventory, your building, and your ability to open your doors while you make repairs or rebuild.
Your wig shop business insurance provides the protection you need in these and many other situations.
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Why Do Wig Shops Need Property Insurance?
Unexpected events can cause damage to your wig shop at any time. Fires, floods, extreme weather, and natural disasters can cause significant damage to your store and all of its contents.
If you have a fire in your shop, your inventory is highly flammable. Even a small fire can quickly escalate into a total loss. Commercial property insurance is designed to help you in these situations.
It covers the costs of repairing or replacing damaged or destroyed physical assets, such as your actual store structure (if you own your building) and its contents, such as computers, fixtures, inventory, artwork, furnishings, equipment (whether leased or owned), display shelves, and more, if they are damaged by a covered event (fire, storm, lightning, theft, etc.).
When these kinds of events happen, you can also face loss of income if the damage renders you unable to operate or meet sales goals for some time while you make repairs, rebuild your store, or replace lost inventory.
Business interruption insurance is part of your commercial property policy, and complements your property coverage. It reimburses you for lost income and pays for certain ongoing expenses (rent, employee salaries) while you temporarily close to make repairs and get back on your feet.
Why Do Wig Shops Need Liability Insurance?
If someone is injured in your store or as a result of your products or operations, chances are you’ll be responsible for paying for any medical expenses for the injured party. While it may sound surprising, there are numerous ways that someone can get injured in your store.
Trip-and-fall injuries are the most typical types of liability claims faced by retail establishments. A customer in your wig shop could easily trip over a wig stand and hit her head or break an ankle.
Medical expenses can be costly enough in these situations. If you are sued for additional damages, the costs can be insurmountable for a small business.
That’s where wig shop commercial general liability (CGL) insurance comes in. It offers broad coverage for all kinds of liability claims, from trip-and-fall incidents to advertising liability, slander, and libel cases. It pays for damages to the injured party as well as your legal expenses and settlements or judgments if you are sued.
One of the major components of your CGL policy is product liability coverage. It covers you if one of your products causes harm to someone. If a wig or hairpiece uses an adhesive that causes an allergic reaction, or a wig causes a customer to experience scalp damage and additional hair loss, the customer may decide to sue you.
In these cases, product liability coverage pays for damages to the injured party, as well as your legal defense and financial settlements if you are sued.
What Additional Wig Shop Insurance Do You Need?
Not every situation is covered by basic property and liability insurance. You’re likely to need several additional policies or coverage options to ensure that you do not have any gaps in your wig shop insurance.
- Commercial umbrella insurance provides an important safety net for cases when a claim exceeds the coverage limit on your general liability policy. If you were hit with an extremely costly lawsuit, this policy would kick in when the coverage on your general liability policy is exhausted.
- Workers’ compensation insurance is required for almost every business that has employees. It compensates employees who are injured on the job by paying for medical expenses and lost wages related to their injury. Your employees can trip over racks, fall off ladders, or suffer repetitive motion injuries from working the cash register or unloading shipments. This coverage ensures that their expenses will be covered in these cases, and prevents them from suing you for additional damages.
- Crime coverage protects your business from crimes that can be committed in your wig shop, including vandalism, shoplifting, and employee theft or embezzlement. This coverage is important for most retail establishments.
- Sign coverage pays for damage to outdoor signs that are not attached to your building when the damage is caused by weather, vandalism, fire, etc.
- Employment practices liability insurance covers you if an employee sues you for discriminatory employment practices.
Do You Need Cyber Liability Insurance for Your Wig Shop?
If you sell wigs online, and even if you simply take credit cards for payment or store your customer records electronically, you probably need to invest in cyber liability insurance.
When electronic data is lost, stolen, or otherwise compromised, the cost of restoring that data is significant. What’s more, you can be responsible for paying for financial damages to any business or individual whose data is stolen or who is otherwise harmed by a data breach.
Cyber liability insurance covers financial losses that result from data breaches and other cyber events. Coverage varies depending on your needs, but many cyber liability insurance products include both first-party and third-party coverage.
This means that your policy will pay for losses sustained by your company directly (first-party coverage), as well as losses sustained by others due to a cyber breach of your company’s data (third-party coverage).
Typical first-party coverage includes things like:
- Costs related to the loss of or damage to your electronic data
- Lost income due to a data breach
- Notification costs (those involved with notifying customers and partners of the breach)
- Costs related to reputational damage and public relations efforts
Third-party coverage is similar to general liability coverage in that it pays for financial damages to harmed companies or individuals when you are sued, as well as paying for your defense costs and financial settlements or judgments related to the cyber incident.
How Much Does Wig Shop Insurance Cost?
Your wig shop insurance premiums depend on a variety of factors, such as:
- Your location
- The size of your store
- The value of your inventory and other commercial property
- Your deductibles
- Number of employees
- Coverage limits
Your wig shop insurance costs are likely to be higher or lower than average depending on the unique characteristics of your business.
Find and Compare Quotes
An independent insurance agent can work with you one-on-one to determine the types and amounts of coverage you need. Your agent can get quotes from multiple insurance companies so you can evaluate the cost and coverage options and make the best choice.
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Benefits of an Independent Agent
Independent insurance agents simplify the search process for finding the right wig shop insurance. They’ll walk you through some handpicked policy options and explain the details and options.
Most importantly, they’ll be there for you when claim time comes. They know the ins and outs of the process and will make sure your claim is handled appropriately.
The Lowdown on Online Quotes
Online quotes can be tempting. They are fast and easy to get—but are they accurate? And are you getting quotes for the right coverage? For business owners, choosing speed over accuracy can cost you.
Online quotes can’t and don’t see the whole picture. They can leave out important coverage that will leave you devastated if something unexpected happens. And they can leave out cost-saving opportunities that an agent can help you take advantage of.
Instead of getting an online quote, find an independent insurance agent now, and get one-on-one consultation and affordable options for the best coverage for your unique needs.
TrustedChoice.com Article | Reviewed by Paul Martin
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