For many, a trip to the salon is like a mini getaway. A chance to get all pampered, primped, and pretty for the party Unfortunately, it’s not always as simple as that, and your salon is a service business just like any other. And with that, comes liability risks.
For example: A few years ago, a 14-year old Florida girl went in to a beauty salon to have her hair dyed blue, and came out with third-degree burns and bald patches. Her parents spent $85,000 in medical expenses and surgical procedures, and turned around and sued the salon for negligence and pain and suffering. It turned out a stylist had not followed the product directions.
Even if you train your employees well, accidents are known to happen all the time. And the legal fees alone could be enough to ruin your business. This is why it’s important to have the right beauty salon insurance in place to protect you.
Fortunately, our independent insurance agents are here to eliminate the hassle of searching on your own by walking you through a hand-picked selection of top insurance policies to cover both your business and your employees. But first, let’s talk more about the protection you need and why you need it.
Why Do I Need Salon Insurance?
- The hair salon industry is mostly comprised of small businesses, with the top 50 chains accounting for only 15% of total revenue.
- 80% of hair salons have fewer than five employees.
Most U.S. hair salons are one-shop businesses, or small, local chains. Their small size makes them more vulnerable to financial loss due to fire, storm, break-in or lawsuit. All it takes is for a fire to destroy your property or a bad bleach job to ruin your salon dreams if you don’t have the right insurance in place.
Salon Insurance for Owners
If you’re like the majority of salon owners, your small business is your livelihood. Whether you’re just getting started or beginning to expand to new locations, you need the right beauty salon business insurance to keep your investment secure.
Whether we’re talking about a hair salon, a nail salon, or a spa, you’ll need these three types of beauty salon insurance:
- Salon liability insurance: This provides financial protection if a customer claims bodily injury or property damage occurred in your salon and decides to sue. For example, if one of your clients slips and falls by a sink, your general liability would pay medical expenses, any judgment or settlement amount you owe, and your legal defense. And because each of those can end up being extremely expensive, it's a good idea to set your liability coverage limits as high as you can afford.
- Property insurance: This covers damage to the building that houses your salon, whether you lease or own it. Personal property insurance covers property you keep inside the walls of your salon, like computers, counters, chairs, tanning beds, styling equipment, and your product inventory. However, this coverage typically doesn’t include plate glass walls. So if your salon storefront includes a large amount of glass, you may want to purchase plate glass coverage for a small increase in your premium.
- Workers compensation insurance: If you have employees, you need workers compensation coverage to protect against financial loss from on-the-job injuries and illnesses. This coverage helps the employee by paying medical bills, a portion of lost income, and rehabilitation expenses. And, it also protects you from lawsuits — state laws prohibit employees from suing their employer for their workplace injury if they have workers compensation insurance in place.
Common Salon Insurance Issues
There are several additional considerations salon owners should consider adding, depending on the nature of their business and the services offered.
- If you hire beauty contractors:
- The hair stylists, manicurists, and massage therapists who rent space in your salon may not be covered by your general liability policy if they cause bodily injury or property damage to one of your clients. Stylists can face lawsuits over something as small as a bad haircut, and these suits can be just as financially destructive as a bodily injury claim, like a chemical burn or an allergic reaction.
- Consider requiring all of your beauty contractors to carry professional liability insurance. This will provide financial protection for both the contractor and, consequently, the salon, to help against litigation over accidents from your services.
- If you sell beauty products:
- If there’s a problem with a product you sell, like a manufacturing flaw or a chemical imbalance in a hair care product, you could be partially liable for any illness or injury your customer suffers. A faulty product suit can affect all parts of the distribution network, from the manufacturer all the way down to the seller.
- If you carry personal care products on your shelves, like shampoos, oils, nail lacquers, soaps, massagers, and so on, you can likely benefit from product liability insurance. Product liability provides financial protection for your salon if one of your products causes injury to your customers. That way you don't have to pay for a manufacturer's mistake.
Nail Salon Insurance
Because of the sharp tools, chemicals, and extended contact necessary for most manicures and pedicures, it’s essential to have the right nail salon insurance to protect your business. Some special considerations for nail salon owners include:
- Professional liability insurance: This is especially important for nail salons. If a worker fails to sanitize tools or accidentally cuts or injures a customer, your business could be sued. Make sure each employee or contractor carries professional liability coverage so that you are protected from lawsuits due to service mistakes.
- Workers compensation: The effects of breathing nail care chemicals day in and day out can be highly detrimental to your workers' health. Workers compensation is essential to any employer, but even more so to nail salon owners because of the tools of the trade. You can reduce your employees' medical risks by ensuring that they wear protective masks and gear when handling chemicals.
Special Salon Insurance Coverages to Consider
Depending on the types of services you provide, you may need some, or all, of the following types of coverages:
- Drain and sewer backups: If you own a hair salon or barber shop, special coverage options may be a good choice, like drain and sewer backup coverage. It pays for the costs of water damage to your walls and floors if your drains become clogged with hair.
- Fire legal liability: If you own a spa or esthetician services salon and use candles and flammable oils, you probably need fire liability coverage. If you’re sued over a fire that starts inside your salon, your legal fees and settlement are covered, up to the limits of your policy.
- Equipment breakdown coverage: If your salon is dependent on equipment like tanning beds, computers, and other machines for revenue, equipment breakdown coverage could be a smart investment. This coverage helps you get the gadgets you need back online quickly without emptying your bank account.
- Inland marine: Provides financial protection for equipment that’s in transit or in storage. If your employees perform esthetician services, hair care, or spa services in outside locations, like weddings and private homes, inland marine coverage protects you from equipment loss on the go.
Finding and Comparing Salon Insurance Quotes
Our agents will review your needs and help you evaluate which salon insurance coverages makes the most sense. They'll also compare policies and quotes from multiple insurance companies to make sure you have the best protection out there. They'll hook you up — in a comprehensive and affordable way.
What's So Great About Independent Insurance Agents?
Independent insurance agents excel at matching the most appropriate policy to the business in need. Shopping around for insurance policies can be tricky, confusing, and time-consuming, and an independent insurance agent's role is to simplify the process.
They’re also there to help make sure you get the absolute best deal, and the one that meets your unique needs. They shop and compare insurance quotes for you, and they'll break down all the jargon so that you understand exactly what you're getting.