BusinessHABHair stylist liability insurance: Getting insurance for your hair salon business is essential.
Hair salon businesses need to be protected against things like claims of professional malpractice, personal injury, and breach of contract.
For example, a guest suffers a burn due to an employee’s negligence with hair chemicals, or a guest claims that one of your stylists caused their hair to fall out.
We’ll help you find the most personalized and affordable coverage for your unique business.
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Hair stylist liability insurance
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1. How Much Will It Cost to Protect Your Business?
Insurance companies use several factors to calculate your monthly premium. Some of the well-known aspects include:
- Type of coverage
- Number of employees
- Geographical location of your business
- Industry
- Financial stability
- Existing safety and security features of your building, equipment, and/or vehicles
It’s estimated that small businesses pay anywhere from $14–$124/month for any one kind of insurance coverage.
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Best Insurance for a Hair Salon Business
2. General liability insurance:
General liability insurance is — generally speaking — one of the most important insurance policies for hair salons.
Some of the risks general liability insurance covers are:
- Bodily injury
- Property damage
- Medical payments
- Legal defense and judgment
- Personal and advertising injury
Some extra policies that may be useful for your hair salon business on top of general liability include:
- Professional liability insurance: Due to the customer-focused nature of your salon, accidents are prone to happen. This policy ensures your business is safe from the financial consequences of customer injuries caused by your services.
- Commercial property insurance: Due to the expense that hair salons must invest in order to get started, it is important to protect this investment should any of these assets need to be replaced or repaired.
- Workers’ compensation insurance: In most states, if your business employs at least a few employees, it will be obligated by law to carry this policy.
3. The two principal types of insurance providers that you can acquire coverage from are:
- Traditional brick-and-mortar insurers — Such as The Hartford, Hiscox, or Nationwide.
- Online insurers — Such as Tivly or Next.
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4. General Liability Insurance Definition
General liability insurance is a type of commercial liability insurance policy that protects a business from the financial burden of claims arising from bodily injury, personal injury, or property damage.
5. Risks typically covered by a General Liability Business Insurance policy include:
- Bodily injury (physical damage to a person’s body, non-employees)
- Property damage (injury to real or personal property, whether your property or a client’s)
- Medical payments (resulting from accidents that happen on your premises)
- Personal liabilities (libel, slander, copyright infringement, invasion of property and privacy, wrongful eviction, false arrest)
- Advertising liabilities injury (losses caused by your advertising or by violating another company’s copyright)
- Legal defence and judgment
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6. How Much Does General Liability Insurance Cost?
The average cost of general liability coverage ranges from about $300 to $1,000 per year, however, different types of businesses will have different needs and incur different risks.
There are several variables that will affect the premiums for small business owners:
- Risk exposure (some businesses are more prone to risk than others)
- Location, generally based on ZIP code
- Annual payroll amount (how many people you employ)
- Per occurrence limit (amount of coverage payable per incident)
- Aggregate limit (amount of coverage payable per policy period)
- Deductible
The amounts above are for estimation purposes only. If you want an accurate cost of what general liability insurance would cost for your LLC, you will need get a quote from an insurance agent.
An effective way to lower your premiums is to employ risk management procedures. Your agent should have information on how to improve these procedures for your business. A business that follows proper processes will inherently lower the risk of an insurance claim.
See also: What kind of Insurance do I Need for Hair Salon(Get the 9 Tips)
7. Benefits Of Having General Liability Insurance
In a claim situation, a commercial general liability policy will protect your LLC’s assets. There are, however, other tangible benefits of your LLC carrying liability insurance. Having a general liability insurance policy also:
- Demonstrates that you are a secure and established business: Displaying to your clients that you are not just a “fly-by-night” company by protecting their assets is a great selling feature. Handing them a copy of your certificate of insurance will instill confidence that you are the right company to get the job done.
- Shows that you care about your employees: Employees can rest a bit easier if they know that their work is protected and backed by insurance.
- May help you gain business: Potential clients sometimes require an insurance policy to be in place, as they don’t want to be held liable for any possible mistakes. Holding an insurance policy may make the difference between your bid and your competitor’s.
Conclusion:
General Liability Insurance is just one type of commercial liability insurance coverage. There are other types of liability insurance policies for small businesses. The most notable is professional liability insurance. While covering different types of risks, professional liability is also a type of liability insurance.
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