Beauty Insurance

A Step Ahead of Ugly Lawsuits ?

As a beauty professional, you offer your customers more than just a beauty regime or a haircut. Your beauty salon is a one-stop-shop for your client’s beauty need. But no matter how professional service you offer, things can still go wrong. Thus, beauty salons require beauty insurance to protect you and your business from unhappy clients and unexpected losses. 

In this article

What is Beauty Insurance? 

Beauty insurance provides coverage for your business and employees during the course of their work. It includes aspects of liability insurance related to treatments that you provide. It also covers equipment like UV lamps, dryers, creams, oils, and other business elements. 

Why is Beauty Insurance Necessary? 

Today the beauty industry is valued at $500 billion business, and the U.S. is the world’s largest beauty market. The average claim is $5,500 in the beauty industry, and without insurance, you would be paying 100% from your pocket. Beauty insurance can protect your business from unpredictable and unavoidable accidents. Suppose your beauty salon got sued for a third-degree burn while dyeing your client’s hair. The client spent thousands of dollars on her treatment and then sued your salon for the negligence and suffering caused. If your salon’s hairdresser insurance had liability insurance, the cost would be covered. If not, the employee would have to pay from their pockets.  

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Who Needs Beauty Insurance? 

Hairstylists

Many things can go wrong in a hair salon. Hairstylist insurance can save you the stress. Knowing that your insurance can pay for any potential mishaps will also buy you peace of mind.

Esthetician

An esthetician faces various risks such as allergic reactions or damage to property, etc. So, they should opt for esthetician insurance.

Masseuse 

A masseuse should insure their business with massage insurance. Massage therapists are prone to risks such as, injured employees, and property damage.

Nail Tech

Nail salons are exposed to higher risks as nail technicians work with chemicals and UV lamps. So, it’s always wise to purchase nail salon insurance to avoid any financial burdens.

Barber

As a barber, you work closely with scissors, chemical treatments, and hot wax. All of these tools have the potential to injure a client. Therefore, barber insurance can help you pay the claim if any accidents occur.

An article published by CNN shows that the most typical injuries came from nail products (28.3%), followed by hair care products (27%), and skincare products (25%).

Don’t wait until it’s too late! Get your affordable and custom-tailored beauty insurance policy quote for your business today.

What Policies Fall Under Beauty Insurance? 

Professional Liability Insurance

Also known as errors and omissions insurance, protects any businesses that provide service to clients. It covers your business when a service or advice you provided causes financial harm to a client. Professional Liability Insurance protects against:

  • Work mistakes: Sometimes, a simple mistake can cause your clients to lose money.
  • Undelivered services: Failing to deliver any service to a client by the deadline can impact the client financially.
  • For instance, if your client has paid in advance for the service and suffers a loss due to your negligence, the client can file a lawsuit..   Should the client decide to  sue you , professional liability insurance will protect you.
  • Accusations of negligence: Your business can face a professional liability lawsuit if a client accuses you of negligence.

For example, a client visits your hair salon for a hairdo for an audition. She trusts you to make her look presentable  for the event. However, if she fails to land the role, she can blame your hairstylist and sue you for the lost income. Therefore, if your hair salon insurance has professional liability insurance, it can cover such litigation expenses.

Product Liability Insurance

Product liability insurance covers your business from financial and legal risks when the quality of the goods and services they use is faulty. Such claims arise due to:

  • Faulty production of product
  • Defective product design
  • Defective instructions, warnings of the product

The beauty industry uses a range of products such as, facial creams, masks, hair products, and many more. If your salon liability insurance includes product liability, it will protect you if a client suffers from =your product’s allergic reaction. Hence, it’s a good idea to have product liability insurance in your existing insurance plans.

Inland Marine Insurance

Inland marine insurance provides coverage for the loss of any property damaged or stolen during the time of transportation. There are different types of inland marine insurance:

  • Bailee’s customer coverage: In the case of hairstylist insurance, wigs and other hairpieces might use bailees coverage.
  • Employees’ tools and machinery exposure: If you have barber insurance, you can add employee tools and machinery exposure when staff use their tools.
  • Goods off-premises: When an employee travels to a client’s house to perform any services.
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Workers Compensation Insurance

Workers compensation insurance offers coverage to any lost wages or medical expenses for employees who become sick or injured on the job. It will also  assure employers that the employees won’t sue them while they receive medical care and other benefits.

In the United States, 80% of salons employ at least five employees. The law mandates any business to purchase workers compensation insurance for companies having more than two employees. Furthermore, these employees are exposed to many hazards, such as:

  • Burns due to use of chemicals
  • Scratches
  • Leg and back injury due to long hours
  • Puncture wounds, and many more

Thus, make sure your certificate of insurance includes workers compensation.

Business Owners Policy (BOP)

BOP is a combination of commercial property, general liability, and business interruption insurance in one package. A BOP enables you to cover your businesses from the following claims:

  • Fire, theft, or other covered disasters
  • Bodily damage
  • Property damage

BOP is a bundle of comprehensive and affordable policies to protect your beauty business.

Commercial Property Insurance

Commercial property insurance provides coverage for the business’s property and location against unpredictable circumstance such as:

  • Natural disasters
  • Fire
  • Accidents
  • Theft

Moreover, it provides payment to repair and replace any tangible assets that were damaged. For example, most products in a tanning salon, such as hair trimmers, chemicals, products containing alcohol, are highly flammable. Poor housekeeping might cause a severe fire hazard. Thus, it is wise to include commercial property insurance in your beauty insurance to cover any property related loss.

Commercial General Liability (CGL)

CGL insurance will cover claims against different damages caused by the business’s operations and products on the business’s premises. These damages include:

  • Personal injury: When your employees  harm your clients on social media, they can sue your business for defamation. CGL will protect you against third-party claims of slander and libel.
  • Bodily injuries: Any medical costs that your company has to bear due to a damage caused by your business.

A report published by NCBI shows that children under two years of age are often injured in the beauty industry. CGL covers such medical expenses.

  • Property damages: If an employee damages the client’s property while working on their premises, CGL covers the subsequent claim.

Don’t wait until it’s too late! Get your affordable and custom-tailored beauty insurance policy quote for your business today.

Exclusions in Beauty Insurance 

Along with coverages for your business, many exclusions  may need your attention.

1. Occurrence Form and Claims-Made

The main difference between the two is that occurrence policy has lifetime coverage for the incidents that occurred during the policy period, and claims-made only covers events that occurred and reported during the policy period. An occurrence policy is activated when damage occurs while the policy is still in effect. While the claims-made policy is triggered when someone files a claim during the policy period.

2. Aqua Therapy

It is a set of activities performed underwater. It provides relief to patients with neurologic and musculoskeletal conditions. Although this method of pain treatments has been used in the industry since ancient times, beauty insurance does not cover it.

3. Cryotherapy

Cryotherapy has become one of the most inquired services in the spa industry. It is a pain treatment in which freezing temperatures deaden the irritated nerve. Dermatologists use this to treat abnormal skin cells. Nonetheless, spa insurance does not cover cryotherapy.

4. Microblading

Microblading is the latest trend in the beauty industry, that uses tiny needles to draw an ink-based eyebrow. Most barbershops provide this service. However, barbershop insurance does not cover microblading.

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Cost of Beauty Insurance 

Beauty insurance is not a one-size-fits-all policy. The cost of beauty insurance is dependent on several factors:

  1. The number of employees
  1. Size of business
  1. Types of services offered
  1. Location
  1. Estimated revenue for the year

Don’t wait until it’s too late! Get your affordable and custom-tailored beauty insurance policy quote for your business today.