Insurance is essential for a business because it protects it against unexpected occurrences. Most people will be surprised to know that even beauty salons need insurance. They require it because accidents can happen in a salon even if employees and owners do their best to avoid them.
The accidents can harm anyone inside the beauty salon, including employees, clients, and the owner. The building and the equipment used in the salon business can also get damaged, so it is crucial to insure them.
If the business owner fails to invest in a policy, it may mean the owner has to pay for the cost of a lawsuit or repair and replacement from their savings. This can lead to bankruptcy and eventually the closure of the business. Fortunately, various beauty salon insurance policies are available to protect a salon owner, property, staff, and customers.
Types of Salon Insurance
Workers Compensation Insurance
Most states require the beauty salon owner to have Worker's Compensation Insurance. It is meant to protect the staff when they get injured or sick when doing the job. It covers medical expenses and compensates the employee for some earnings lost while recovering. The money can also be used to pay an attorney if the employee files a lawsuit against the salon.
The employees in a beauty salon include receptionists, assistants, and stylists. A salon employee is prone to accidents because they handle chemicals, sharp objects, and hot tools daily. Therefore, a salon business needs to have this policy.
Professional Liability Insurance
Professional Liability Insurance protects the enterprise from lawsuits due to negligence. This beauty salon insurance policy protects against damage or injury claims because of employees' mistakes when carrying out their duties.
The mistakes can result from something you either did or failed to do. The errors can be anything from hair loss because of excessive processing, pain after a massage session, or an allergic reaction after hair coloring.
General Liability Insurance
General Liability Insurance covers accidents at work such as slipping and falling, libel and slander, and property damage. It covers settlement expenses, legal representation, and medical costs if a client sues the business. The salon insurance policy is not mandatory, but it helps the employer by protecting them from huge losses.
Lawsuits can be pretty costly, so having this policy shields you from the inconvenience of spending money from your pocket to pay legal fees and settlements. If you are providing your services outside your business premises, e.g., in a client's home, you will still need this policy because the homeowner's policy will not cover you.
Product Liability
This insurance coverage is also crucial. It protects a beauty salon if it sells things. A detective product could affect or make a client sick. The business will be held liable regardless of whether it manufactured the product. Sometimes, a client might sue a company because of a defective product, and this is where this policy will come in handy since it will cover the compensation expenses.
Commercial Property Insurance
Starting any business is an expensive venture. If you lose everything in your salon, replacing it and resuming operations will be an uphill task. Commercial Property Insurance is also popularly referred to as commercial property and casualty insurance. It covers the equipment used in the beauty salon, such as tanning beds and chairs.
Commercial Property Insurance also covers the property housing the beauty salon if it gets destroyed due to a storm, theft, fire, or a plumbing accident. Commercial Property Insurance does not cover natural disasters, but you can add them to your policy if you want the protection.
Business Owner Policy
Business owners and entrepreneurs need Business Owner Policy. This type of insurance covers both commercial property damage and liability claims, so it's essential to make sure you purchase the right policy before beginning your business. It can also contain other coverages that the policyholder chooses. Grouping insurance policies together makes paying for coverage cheaper and more manageable.
Salon owners can also consider acquiring employment practices liability insurance, equipment breakdown insurance, business income insurance, cyber insurance, and business interruption insurance. Alternatively, you can include them in your business owner policy.
Cost of Insurance
The insurance cost depends on the number of employees, location, and revenue. These influence whether you can get an insurance premium cheaper.
It is important to note that different salons require different types of policies. Know the unique needs of your salon and determine the specific types of policies that will meet your needs adequately. Also, business owners or salon owners do not just choose any insurer. They look for the most reliable, professional, and experienced insurance company.
Contact the Salon Insurance Professionals in Dallas, TX
Thumann Agency is here to help you find the best insurance coverage for your salon business in Dallas. Our knowledgeable team can answer any questions during this process and provide a fast quote with exceptional customer service. Contact us today at 972-991-9100, and let's get started!