Are you starting your own hair salon or styling business? One of the most important ways you can protect your new venture — whether run from home or in a public salon — is to have the right insurance. But what is the right insurance? Here are four "must have" insurance policies for any salon business as well as some you might want to add.
The Must-Have Insurance
Salons, like many other businesses, generally benefit from a standard set of business insurance packages. These include the following:
- General Liability. This coverage is about protecting you from being held responsible for accidents or damage that occur on your property. It covers damage to customers, vendors, and the public — but not to yourself and only in certain cases to your employees.
- Commercial Property. A salon needs property insurance separately from liability as this will cover damage to your own building or assets. In addition to covering the actual damage from an emergency, it may also cover things like vandalism, theft, and extra expenses to keep your business operating during repairs.
- Professional Liability. An underrated insurance for salons, professional liability is different than general liability. Instead, this coverage focuses on someone who might hold you responsible for harm they were caused by your services. If a client's hair falls out and they blame your work, for instance, professional liability may cover the legal bill.
- Workers Compensation. Workers comp coverage is mandatory for most businesses with employees. It covers your stylists and administrative staff if they are injured while on the job. As an owner or officer, you may be covered depending on your business entity.
A small salon owner can often get most of these necessary policies bundled into a single package known as a "business owner policy." However, not all BOP packages include professional liability, so you may want to purchase it separately.
The Recommended Insurance
Even though they're not mandatory, some additional policies may be a good idea for salon owners. Cyber insurance, for instance, is increasingly important as it protects your clients' sensitive personal information. If you do the majority of the work yourself, you should also have personal health insurance and life insurance. If you produce your own line of products, you should also have product liability coverage.
Do you have the right coverage for your business? If you're not certain, consult with an insurance agent who specializes in small businesses like yours. The effort will be worth it as you protect yourself and your fledgling enterprise from whatever life throws at it. Look for a professional who offers business insurance in your area.
Do you remember the last time you experienced an accident or an injury? Life can surprise you sometimes, which is why it is always smart to have a few life insurance policies in place. I used to think about everything that I had and everything that I could lose, and it occurred to me that I couldn't risk taking any chances. I wanted to begin this blog to share my perspective with other people, so that you don't have to worry about finding the right insurance company. Read more here to figure out what you need to do to choose a better plan.