No matter if you work as an independent contractor in a Beauty Parlor or if you are the owner of the business, sometimes unexpected events happen, and you need to be prepared for the worst. Having a Beauty Parlor Salon Insurance gives you the peace of mind to take care of the personal image of your clients instead of dealing with expensive liability claims that could be fatal to your business and your income.
Beauty Parlors face different risks, with the most common being liability claims from a dissatisfied customer or bodily injuries and the second being damages done to your commercial property caused by an accident, nature or dishonesty. Let’s take a look at what different insurance coverages are beneficial for you and your business in case of any of these risks turn real.
- Business Owner’s Policy (BOP)
The Business Owner’s Policy is a bundle that incorporates General Liability coverage with Commercial Building & Property Insurance, and Business Income & Extra Expense coverage, which means that you will get the basics for your Beauty Parlor entirely covered. You will get back up in case of any lawsuit filed against your business for liability related situations, for example, if a customer walks into your Beauty Parlor and slips with some water residues from a pedicure tub and then files a claim. You will get an attorney to represent you, and any legal fee will be paid by the insurance and any payments you’re due to after the insurance company will also cover the trial. It also protects your building property from accidents like fire, water damage, hail/wind, as well as your business property like acrylic powders, gels, brushes, UV lamps, furniture, and anything you use as business equipment.
- General Liability Insurance
While it’s incorporated in the BOP, you may feel that you need extra coverage on that area, or perhaps you would like getting a General Liability Insurance instead of a BOP. In any case, you will get your money worth. Claims for general liability are filed every day, from every type of business, and although you may think that a customer walking in to get his kid a haircut won’t file a lawsuit against you because the kid grabbed some scissors and cut himself by mistake, it’s something that’s completely possible to occur. It’s up to you how well covered you want to be in that situation or a similar one. Below are the standard coverages for commercial general liability.
General Liability $1,000,000 per Occurrence/$2,000,000 Aggregate
Advertising Injury $1,000,000
Products and Comp. Operations $1,000,000
Damage to Property $50,000
- Professional Liability Insurance
Let’s say a regular client walks in and ask one of your Hair Stylist to do a particular hairstyle; but the customer feels unsatisfied by the result, and the next day, you receive a letter notifying you that a claim has been filed due to emotional damage done to the client. Unbelievable as it may sound, you’ve probably heard this case more than one time, and to protect yourself from it we recommend you get Professional Liability Insurance. It covers you from any professional mistake a customer claims you made, even if it isn’t true. The policy would take care of the claim and assign you an attorney. All expenses are covered including legal fees and settlements if found guilty. If you are found not guilty, you could get financial compensation because your Beauty Parlor was out of business for the duration of the trial.
- Product Liability Insurance
Despite the hard work you put to ensure the products you use and sell in your Parlor are high-quality, there is still the chance that those products fail to work correctly during a nail application at home. These product defects represent serious risks neither your clients, your business or you can afford. Products Liability covers the expenses from litigations originated from a product or equipment sold at your business.
- Commercial Building & Property coverage
If there’s a catastrophe that damages your business or any property of it, including the building, you get coverage for rebuilding as well as coverage for any business property that gets damaged. You get coverage against fire, water damage, wind/hail, vandalism, and thieving. It’s included in a BOP.
If a fire breaks out at your store and burns everything to the ground, you get coverage for any structural damage the building suffers as well as coverage for any business property that gets damaged. You get coverage not only for fire damage but also for water damage, wind/hail damage, vandalism, thieving.
- Workers’ Compensation Insurance
If you own a Beauty Parlor and have a couple of employees working for you, you need Workers’ Compensation for each of your employees. It’s required by law so you would get in trouble if you don’t have it.
- Employee Dishonesty Insurance
If your business is hurt in any way by illegal acts or practices of one of your employees, like property stealing or customers private information breach, you get compensation for your lost property and coverage for legal fees.
- Business Interruption Insurance
It covers the actual loss of business revenue caused by a suspension of operations due to theft, fire or extreme weather, including the income that is lost during the closing.
For example, the theft of the Parlor equipment would cause closure for an indefinite time of the business. This policy can cover the income that you stop receiving while you acquire new products.
- Business Income & Extra Expense coverage
Provides coverage in case your business ceases operations temporally due to an already covered peril like a fire burning down your shop. It keeps rent and payroll under control among additional options during the rebuilding process. If you open at another location in the meantime, Extra Expense coverage brings extra coverage for that new temporal location expenses. It’s included in a BOP.
Now that you know the risks your business is taking you can start preparing against them. Call our insurance agents now and choose the coverage you think will help your Beauty Parlor Salon the most. We have several agents waiting to solve any doubts that you may have left and to help you get the best quote for your business today.