Every industry has its own risks to contend with, and salons, barber shops, and spas are no different. Your clients in the personal care industry need affordable coverage to protect their business assets, and your ability to find the right coverage quickly can make you indispensable.
The coverages listed below are some of the important policies for your personal care industry client. Find out how each protects them from their trade's unique risks:
General Liability Insurance
Because your client's commercial space is open to the public, General Liability Insurance is an essential policy for salons and spas. General Liability financially shields your client from lawsuits over a third party's damaged property or bodily injuries sustained on your client's premises. For example, a customer could walk into your client's salon, trip over the welcome mat, and sue for the medical costs associated with their injury. GL may cover legal defense fees, customer medical expenses, or court-ordered judgments.
Property Insurance / Business Owner's Policy
Hairdressers, estheticians, massage therapists, and nail technicians have lots of equipment - some of which can be pretty costly, such as tanning beds and pedicure spa units. Property Insurance protects these business assets plus the physical location of the business. If your client's business property is damaged or lost because of theft, windstorms, or fires, Property Insurance compensates your client for the cost of replacing or repairing their items.
Professional Liability / Errors & Omissions (E&O) Insurance
Any business that provides a professional service can be sued for negligence. Salon, barber shop, and spa owners work with customers who could easily claim they received incomplete or subpar services, and that exposes your client to a potential lawsuit. For example, say a model visits your client's day spa for a facial before an audition. The treatment irritates her face and she doesn't get the job, so she decides to sue the spa for economic damages. Errors and Omissions Insurance, or Errors and Omissions (E&O) Insurance, pays for your client's legal fees, court costs, and settlements, even if the suit is meritless.
If your client has employees, they probably need Workers' Compensation Insurance to comply with state laws. Most states require employers to carry the coverage - even if they only have one part-time staff member. Workers' Comp steps in when your client's employees can't work because of an occupational injury or illness (e.g., a reaction to the chemicals used in a treatment). It may pay their medical expenses and foregone income. Plus, if the employee decides to sue your client over the injury, most Workers' Comp policies offer some liability coverage.