Salon Insurance: What Kind of Insurance Do Personal Services Need?

There's a hair salon, a nail salon and massage parlor in every shopping mall and strip mall these days. You may be a hairstylist looking to open your own shop or you may be renting a Phenix Salon suite, which has become a very popular option for some hairdressers. You may be an aesthetician who gives the best skin peels in town or a massage therapist who does acupuncture as well. Whatever your profession, you have small-business goals but your first priority should be to have great protection in case of mishaps and bumps along the way.

There's more to opening a successful shop than you'd think. Even if you do a great job growing your business and hiring amazing talent, you may somehow damage your suite, or worse yet, the building. Or there may be a mishap that causes a customer to file charges against you.

Working in the personal services industry has its unique risks and you must be prepared to protect yourself against them. We're here to help you find the right insurance so you never have to pay out-of-pocket costs on your path to building a beauty empire!.

What Is Salon Insurance and Do I Need It?

Imagine that you, or perhaps someone you employ at the shop, have an accident with those sharp shears. Or what if the colorist went too far with the bleach and burned a client's scalp? Nail salons, too, can be accused of spreading nail fungus, infections from cutting cuticles and more. Aestheticians can accidentally burn a client with hot wax or with an intense chemical peel that causes scarring. Every profession has its specific risks but personal services can really be tricky to protect from these risks. You'll need the right commercial insurance to protect yourself.

What Does Beauty Salon Insurance Not Cover?

Each policy is different so it's important that you read your policy's exclusions before you begin offering more high-risk services. If you own one of the following types of businesses, you may be out of luck because these services are common exclusions for beauty salon insurance:

• Airbrush services
• Electrolysis
• Hair transplants
• Eyelash coloring
• Massage therapy
• Laser treatments
• Electric massage chair or vibration machines
• Suntan beds and booths
• Skin needling
• Body modifications

There's really no such thing as salon insurance but many salon owners refer to their commercial insurance as salon insurance or beauty salon insurance. Many types of businesses fall under the umbrella of salon insurance, which refers to commercial insurance policies that protect hair salons, full-service beauty salons, nail salons, barbershops, and spas.

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What Kind of Insurance Do I Need for a Beauty Salon?

The most common and important form of insurance personal services shops need is commercial general liability insurance. It covers third-party bodily injury, property damage, and reputational harm. This is what would cover you if a customer slipped and fell. Their medical expenses would be paid after you file a claim with your insurer.

If you were sued for slandering a competitor for inferior styling skills, your legal expenses would be covered if you file a claim with your commercial insurance carrier.

If the shampoo you sold caused hair loss and you were sued, you'd be covered for the client's loss and any legal fees tied to the event.

Saving Money on Salon Insurance Coverage and Meeting Legal Requirements

There are other forms of insurance besides general liability coverage that would be beneficial to add to this most basic policy, but the most cost-saving type of policy you can buy is a bundled package called a business owner policy (BOP). Instead of buying coverages ala carte, a BOP includes general liability coverage, property damage liability, personal and advertising injury liability and workers compensation.

Workers compensation would cover you if an employee got hurt in your salon. It covers medical bills and wage replacement for employees who suffer work-related illness or injury. It is required for businesses in most states to protect employees in the workplace.

It's easy to forget to buy property damage liability and personal and advertising injury liability coverage. It's important to note that these two very important coverages are not included in a general liability insurance policy. They are, however, included in a BOP policy.

Why would you need property damage liability, you're probably wondering. Let's say you left a curling iron on and it caught fire and burned down the building, you'd be at an incredibly backbreaking loss if you didn't have commercial property insurance. Saying you'll be more careful won't help if you're held liable for the other businesses that suffered losses and the building itself.

How Much Does Beauty Salon Insurance Cost?

On average you're spending anywhere from $300 to $1400 a year, which broken up into monthly payments is really worth what it may prevent -- a devastating loss. It's important to compare beauty salon insurance rates before buying a policy. Make sure your agent is really listening to your needs and ask him/her to make sure your services will not be excluded from the policy they are offering.