In the beauty industry, your focus is the comfort and care of your clients. You provide services that many rely on to feel confident and beautiful, from hair and makeup services to nails and skincare. Your clients trust you with their appearances, and you deliver results. But sometimes, unexpected events can happen that may have an adverse effect on the people you serve.
Ensure you are prepared and protected for unanticipated consequences of your services with the right insurance for beauty professionals.
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When is a Beauty Insurance Policy Necessary?
Although you try to take every precaution in your work, accidents or unforeseen consequences can sometimes happen.
Maybe one of your clients has an allergic reaction to a new shampoo or a product used in a facial. Perhaps the colour dye you use on a client’s hair doesn’t come out as intended. You use various beauty products and chemicals in your work, and it’s important to take that risk with the right coverage options for your business.
Whether a client seeks redress or another remedy, you have to ensure you are covered with the right/best beautician insurance coverage based on the services offered.
What Insurance Coverage Do Beauty Professionals Need?
There are several insurance coverages to consider for beauticians, including the following:
- Commercial General Liability (CGL): Protects you against claims of bodily injury or property damage related to your business. CGL can also provide coverage for an advertising injury.
- Professional Liability Insurance: Because of the scope of beautician services, a beautician’s professional liability insurance policy covers the majority of coverage for injuries or financial loss clients might experience due to services received. The completed operations section of the commercial general liability policy does not cover this.
- Property Insurance: Protects your business property, including your physical location and expensive equipment, in the event of extreme weather events, vandalism, fire, sewer back-up and/or theft. If you rent commercial space from someone else, they often require commercial property insurance and commercial general liability insurance coverage as a lease condition.
- Commercial Auto Insurance: If you offer a mobile service, you should consider commercial auto insurance to protect yourself and your staff while driving company vehicles or using a personal vehicle for company purposes.
- Cyber Insurance: Protects the online portion of your business from threats like malicious hacking and data loss.
- Product Liability Insurance: If a customer has a bad reaction to a product used or sold in your salon, you may be legally and financially liable. Product liability insurance protects beauty salons from lawsuits stemming from allergic reactions, burns and other injuries.
- Crime Insurance: Protects your beauty company in case of theft, forgery, or fraud.
- Business Interruption Insurance: Provides compensation if your beauty salon closes temporarily.
In What Circumstances Do Beauticians Need Insurance?
There are many instances when you would need insurance coverage as a beautician:
- You try a new skin product on one of your clients the day before her wedding day. She suffers a painful and unsightly allergic reaction and seeks to sue you for damages.
- A hailstorm damages the exterior of your salon space, necessitating the repair of your window and replacing the products, furniture and displays damaged by the storm.
- One of your staff runs a red light and gets into a car accident in a company vehicle on her way to an in-home appointment and severely injures the passengers in the other vehicle.
- While in a client’s home, you accidentally knock over an antique vase worth thousands of dollars.
- You gossip with a client while sculpting her eyebrows about another beautician you both know. Your client lets slip what you said to that beautician, and she sues you for slander.
These are just a few specific risks. There are many unexpected instances when comprehensive coverage is necessary to protect your business.
Do Mobile Beauticians Need Beauty Insurance?
Yes, mobile beauticians face risks, often different from beauty parlours. Travelling from location to location is necessary for a mobile beautician’s business. As such, mobile beauticians should consider commercial auto insurance policies for their business.
A mobile beauty professional could also inadvertently or accidentally damage a client’s home while attending an appointment. This type of liability risk means they should be protected by proper mobile beautician insurance.
Like beauty business owners, mobile beauticians also need liability protection against faulty or damaged products and other business risks. Liability claims can arise from various situations, so it’s crucial to have appropriate coverage.
How Much Does Beauty Business Insurance Cost?
Insurance costs for beauty services are difficult to measure without knowing the types of coverage you need. The business location and your claims history can also affect commercial insurance premiums.
If your beauty salon and equipment are valued higher, your insurance premiums can also be higher as it will be more expensive for the insurance company to insure. In addition, a history of insurance claims can also increase the cost of your beauty insurance because your business is riskier to insure.
You must also consider the services you provide since larger risks result in higher insurance costs. Every service comes with a degree of risk. While hair stylists and nail salons are less risky, tanning, skincare treatments, massages, and hair removal can result in bodily harm and are riskier to offer.
Will My Beauty Insurance Policy Cover Beauticians Renting Chairs?
If someone rents a chair in your business but is not an employee, your beauty business insurance policy will not cover that beautician.
Essentially, someone renting a chair from you in your salon or business is considered a small business in and of themselves. As such, they can be held liable for anything that goes wrong related to their business practice in the same way that you are responsible for your business.
Many salon owners require anyone renting space to carry beautician insurance, which covers their liability. This protects the beautician and your business and is a good practice to adopt.
Find the Right Beautician Insurance from ALIGNED
ALIGNED works with 70+ top insurance companies to provide custom insurance packages at affordable prices. Click Here To Get A Quote or contact one of our beauty salon business insurance experts for information or any questions.
Frequently Asked Questions
Is insurance necessary for small businesses offering beauty services?
Yes, any business providing beauty services needs an insurance plan to protect against liability claims, cover legal fees, and ensure smooth operation even after unforeseen incidents like business interruption.
What should mobile beauticians do to prevent accidents during appointments?
To prevent accidents during appointments, mobile beauticians should ensure work areas are clear of hazards, maintain a clean setup, and provide safety warnings to prevent slips and falls. It is important to regularly inspect electrical equipment, handle chemicals with care, and conduct allergy consultations. Additionally, storing flammable materials properly, using ergonomic tools, and taking breaks can enhance safety for beauticians and clients.
What are the benefits of having comprehensive insurance coverage for a makeup artist?
A makeup artist benefits from comprehensive insurance coverage by being protected against treatment-related accidents and client slips. This coverage allows them to focus on their work without worrying about potential legal and financial repercussions.
Do mobile beauticians offering specialized services need additional insurance?
Mobile beauticians offering specialized services like microblading and whitening/hygienist treatments should ensure their insurance policy covers these high-risk services. This specialized coverage protects against potential legal fees and liability claims that may arise.
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