Whether you are a hairstylist or barber, contractor or salon owner, it’s important to have the right type of coverage to meet your unique needs. Unfortunately, there’s a lot of potential for things to go wrong at a salon. Taking onto account the sheer number of chemicals and products being used, liability claims are a real concern. If you work in the personal care and beauty industry, hair salon insurance can be styled to suit your individual needs. Let’s learn more below.
What is insurance for hair salons?
Working in the personal care and beauty business can present some unique challenges. Hairdresser or hair salon insurance policy packages are specially designed to protect hair stylists and salons against specific risks associated with providing hairdressing services. This includes equipment and treatment-related accidents and injuries. No matter how careful you are or skilled you are at your job, there’s always the possibility of an accident or unforeseen event that can cause injury or property damage. If this happens, it can result in a lawsuit that leaves you liable for settlements to cover medical costs, replacement for damaged property, legal fees and more. Needless to say, those expenses can be incredibly high and create a massive financial impact that takes years, or even decades, to recover from.
Who should have Hair Salon Insurance?
If you are working in the hairdresser industry, it’s important to make sure you have full coverage with the right salon insurance policy. Protecting your business from potential risks that can lead to financial loss should be a top priority. Individuals that should consider this type of coverage include:
- Owners of hair salons
- Hair stylists
- Barbers
- Hairdressers
- Hair colourists
- Mobile hair service providers
Hair Salon Insurance coverage breakdown
Whether you’re the owner of a hair salon, rent a chair in a salon, or a freelance mobile hair stylist, you need an insurance package that suits your unique needs. The right coverage can protect hair stylists and salons against risks specific to providing hairdressing services, mainly equipment- and treatment-related accidents or injuries.
Hair salon liability insurance is an insurance package that protects hair salons and hair stylists against common risks they face. The bundle may contains:
1. Professional Liability Insurance (E&O)
The fact that hair stylists, barbers, colourists and other types of hair professionals work directly with a part of their clients’ bodies makes professional liability insurance possibly the most necessary part of a comprehensive Ontario hair salon insurance policy. Errors & Omissions (E&O), also known as salon malpractice insurance, protects you and your business from claims alleging they are suffering financial losses. These losses may be resulting from professional negligence, bad advice, misconduct, failure to deliver a promised service, advertising injury or breach of contract.
2. Commercial General Liability Insurance (CGL)
CGL is the most important insurance product for businesses. The negative impact that a lawsuit can have on your business has become a very real concern for owners. This coverage exists to offer you liability protection if you find yourself being sued for allegedly causing third-party bodily injury, third-party property damage or personal harm. Your CGL insurance steps in to cover costs pertaining to the lawsuit, such as legal defence fees when you’re forced to defend yourself in court. It also covers settlement costs up to your policy limit should you be sued successfully.
3. Contents Insurance
Contents insurance coverage is also known as commercial property insurance. It provides coverage for your business property and all of your contents. With this coverage, you will have protection if your property or equipment gets damaged by unexpected events, like fire, theft, vandalism or natural disasters.
Other types of insurance coverage to consider
4. Product Liability Insurance
If your salon carries products for sale, your Commercial General Liability policy can cover any Product Liability. In the event of a manufacturing error or chemical imbalance in these products, you can be held responsible for the injury or illness your client experiences. Product liability coverage will help protect your business financially, so you won’t have to suffer from the manufacturer’s mistake.
5. Business Interruption Insurance (BI)
If your commercial location suffers damage or its contents lost, you will have no choice but to stop taking clients. While you’re waiting, the interruption in your revenue can spell serious trouble for your bottom line. BI insurance will provide financial assistance to help you recoup your loss of income and take care of other expenses. These may include employee wages so you’re able to get back on your feet as soon as possible and do what you do best.
It’s worth noting that business interruption coverage does not typically apply to closures that are government-mandated for infectious disease control.
6. Equipment Breakdown Insurance
As a business in the beauty and personal care industry, you might rely on pressurized, mechanical or electrical equipment in your day-to-day operations. Equipment breakdown insurance may cover losses resulting from accidental breakdown of the equipment that is instrumental to run your business. This coverage is one you won’t want to miss in your Hair Salon Insurance policy.
7. Home-Based Business Insurance
If you’re working from home for your hairdresser business, home-based business coverage is what you’ll need. It can also include protection for business interruption to help you recover lost income if you need to stop your business to deal with property damage or theft.
To learn how to best protect your home-based business, please click here.
8. Cyber Liability Insurance
If you have a proprietary blend of products, then your computer and services might also be at risk of cybercrime. Criminals can hack into your systems and hold your data for ransom until you pay the full amounts. Cyber Insurance can also protect your company if you allow customers to pay online and save their credit card details.
9. Commercial Auto insurance
If you often have employees driving to different destinations for their service, consider commercial auto insurance. If your employee(s) were to get into an accident on the way, your insurance will be able to cover the cost of repairs for the vehicle. Workers’ compensation insurance will cover the employee’s lost wages and any medical bills that may be incurred.
Special considerations
Hair salon owners
As a hair salon owner, you are responsible for several different hairstylists working for you – either full or part time. This means that you pay their salary, vacation and sick days as legally required. If you allow independent contractors to rent a booth and tools, as the hair salon owner, you now have business and third-party claims risk, too. Any third-party claims for injuries like slip-and-fall can end up costing you a lot of money in legal fees and settlements. As your business has more money than the independent contractors you hire, the third parties will sue your business first. Additionally, customers can claim that staff are not providing the service they paid for – the wrong haircut or damaging their hair while colouring. Your salon can be sued for that, as well.
Hairdresser Insurance
If you are working on your own or are self-employed renting a booth at a salon you don’t permanently work at, you’ll need hairdresser insurance for hair stylists. Commercial General Liability and Professional Liability won’t typically cover independent contractors. So, you can be held responsible for injuries or damage, similarly to a small-business owner. Even if the salon owner does not require you to purchase your own insurance, you should still consider it to protect yourself. Hairdresser insurance covers self-employed hairstylists who deal with professional liability claims.
Mobile hairdressers
Some hairdressers move from salon to salon. As a salon owner, you may invite a well-known hairdresser to your salon to increase sales for a week or a month. This temporary employee will be covered under the hair salon insurance by extending your coverage to them. Mobile hairdressers may want to ensure that they are covered under a separate hairdresser insurance policy. It offers mobile hairdressers more control over their protection.
Typical costs of Hair Salon Insurance
Hair salon insurance can range from $450 to $3,500 per year. Your premiums depend on a lot of different factors, including the type of activities that you provide. Some activities are riskier than others. Higher revenue can lead to higher premiums because you can get sued for a larger amount.
Some of the factors your insurer will look at include:
- Business location
- Type of business
- Beauty services you offer
- Insurance claims history
- Number of employees
- Annual revenue
- Business practices
Final thoughts on Hair Salon Insurance
There is no such thing as a one-size-fits-all solution when it comes to Hair Salon insurance, or any insurance for that matter. Each individual chooses to run their business and provide services in their own unique way. This means you’ll need unique Hair Salon Insurance coverage that addresses the common risks you’re most likely to encounter. Our isure brokers have the expertise to determine the best options for your Hair Salon Insurance. We’ll offer you clear recommendations so you can choose the best protection for your hair stylist operations. Making your customers look and feel good is your top priority. Let isure help you to feel good about your insurance coverage!
