How to Get Beauty Salon Insurance (A Simple Guide)

Securing liability insurance for your salon is extremely important to the long-term health of your business. Just like you take out policies on your car, home, or even your pets, liability insurance helps you prepare for the unexpected and protect you, your salon, and your net worth from certain risks.

What Is Beauty Salon Insurance

Beauty salon insurance is a specialized insurance policy tailored for beauty salons. It protects beauty establishments against potential claims resulting from injuries, damages, or other professional risks.

Having a business insurance policy, especially for beauty establishments, is paramount. Professional liability insurance, commonly known as beauty or hair salon insurance, shields your business from potential claims resulting from injuries or other damages. If an accident happens within your salon's premises – whether it's linked to the services you provide or other unforeseen incidents – the insurance coverage will handle the associated costs.

Imagine a scenario where a client slips right outside your salon or has an adverse reaction to a hair dye you used. It's this insurance coverage that comes to the rescue, handling the legal expenses you'd otherwise face. Without this crucial protection, unexpected costs can heavily strain your salon's finances.

Each month, you commit to an insurance premium. In exchange, whenever an incident arises, you have the avenue to file a claim with your insurance provider, checking if they'll support the liability involved."

3 Types of Beauty Salon Insurance

There are several diffrent types of liability insurance you can purchase that cover different aspects of your business.

1. Professional Liability

A professional liability policy protects you from any claims that can be brought as a result of your services. If a client experiences an injury to themselves or their property while you rendered services, this policy will help protect you against those claims. For example, if a client develops an infection after getting nicked by a scissor and decides to sue, your policy has you covered.

2. Product Liability

Whether you’re a cosmetologist, esthetician, or any other beauty professional, you’re going to use a wide variety of products to do your job. If a client experiences some form of injury as a result of a product you used, like an adverse reaction to a shampoo or developing a rash during a color treatment, they can sue to hold you liable for damages. A product liability policy will cover any damages incurred by products used in your salon.

3. General Liability

General liability insurance is just that – it covers you for general incidents that might occur in your place of business. If someone slips and falls on a patch of ice, bumps their knee on a chair, or takes a spill on a yet-to-be-swept pile of hair, general liability has you covered. General liability can also protect against stolen or lost goods.

Steps to Acquire Beauty Salon Insurance

Here are steps you can take to acquire business insurance for your salon:

• Identifying Your Coverage Needs: Before diving deep into the world of insurance, take a breather and pinpoint the risks tied to your salon. This step aids in grasping the kind of coverage you might need.
• Scouting for the Right Insurer: Remember, not all insurers cater to the niche demands of beauty salons. Your first step should be curating a list of companies known to craft policies for beauty-centric small businesses.
• Decoding the Business Owner's Policy (BOP): A BOP neatly fuses business property and liability insurance. For salons, it's a worthy consideration given the all-in-one coverage it promises.
• Assemble Your Docs: Be armed with your business specifics, any licenses, and prior insurance documents (if you had any). This pre-prep ensures a hitch-free application journey.
• Getting Those Quotes: Engage with your chosen insurance firms, and get a quote tailored to your salon's unique profile. Pro-tip: Always check if they have any special deals or bundles up for grabs.
• Sizing Up Liability Coverage: It's essential the coverage on offer guards against any claims arising from the services you offer, product-related mishaps, or common accidents within your salon space.
• Comparison is Key: Never jump at the first quote you land. Analyze multiple quotes, what they cover, and feedback from other customers to land the best package.
• Seal the Deal: When a plan resonates with your needs, finalize those details, make your payment, and celebrate - your salon's insurance is in place!
• Stay Updated: Business needs, especially in dynamic fields like beauty, evolve. Make a habit of revisiting your policy annually or after any major business overhaul.

In essence, these steps arm salon proprietors with the shield they need against unforeseen setbacks. A golden rule? Keep those lines of communication with your insurer wide open to optimize your coverage benefits.

How Do You Choose an Insurance Provider?

There are many different insurance providers you can choose from, from general liability providers like the Allstates of the world, to specialty salon insurance providers like Elite Beauty Society. Evaluating an insurance provider can be tough: the language isn’t easy to understand, the numbers aren’t always clear, and even just the thought of things going wrong in your business can be scary.

The first step is to read their policies thoroughly to understand what they cover, and more importantly, what they don’t. Some policies pay out based on occurrences, meaning you can file a claim even after your policy expired so long as the incident took place while you were covered. Others only allow you to file claims when your policy is active.

When thinking about insurance, you should try to think about how you’d like to be protected. Remember, you’re paying insurance premiums in exchange for protection against large, expensive claims made against yourself or your business. Here are a few questions you should ask when evaluating different providers:

1. How long have they been in business?
2. Do they have positive reviews from people in the beauty industry?
3. Will they cover multiple services and/or professions?
4. Do they have a reputation for paying out on claims?
5. Do they speak to your specific and unique needs?

GlossGenius partners with Elite Beauty Society to offer discounted rates to salon owners and beauty entrepreneurs to get them the coverage they need – from people who understand how your industry works. They offer full protection for more than 350 beauty and wellness modalities, as well as professional business support and member benefits.