Why Do You Need Barber Shop Insurance?
Why does a barbershop need insurance? As the owner of a barber shop, you face unique risks in the day-to-day services you provide. You work with scissors and sharp blades. You may work with different chemicals to dye hair that could cause an allergic reaction. You have clients walking in and out of your building. Perhaps you manage other barbers and stylists. Barber shops need business insurance for protection in all of these situations. What type of insurance do you need? Read this guide to learn more about how to protect your small business with barber insurance.
Barber Shop Business Owners’ Policy
A business owners’ policy is a bundle of common insurance coverages any small business owner might need. It is often a great way to save money on business insurance. A BOP usually consists of general liability insurance, commercial property insurance, and business interruption insurance (and sometimes one or more industry-specific policies).
General liability insurance
General liability insurance covers claims of customer injuries, customer property damage, and personal advertising injury. If a client comes into your barber shop and accidentally slips and hits their head, this policy will cover the medical expenses for their injury. If that client sues you for negligence, your barber insurance coverage will provide you legal representation and help settle the suit.
If you operate your barber shop out of your home, make sure your insurance agent is aware and they can help you craft the right home-based business insurance. Barbershops, salons, and other businesses operated out of a home still need the proper coverage. You can't rely on homeowners insurance to foot the bill should something go wrong.
Commercial Property Insurance
Do you own your own barber shop? If you own your own location, you’ll need commercial property insurance to protect your building and everything contained inside. That includes property damage to any expensive grooming equipment, hair products, styling tools, and furniture. Business property insurance usually includes coverage under circumstances such as a fire, hail/wind/storm damage, theft, and vandalism.
Business interruption insurance
If your property is damaged and you’re unable to run your business, business interruption insurance—also referred to as business income and extra expense—can come to your rescue. This policy can help cover operating expenses, payroll, lost profit, taxes, and sometimes the cost of a temporary location.
Example: A fire breaks out in your break room and your sprinkler system malfunctions. Half of your barbershop is damaged before the flames are controlled. Your insurance company will pay to repair the building and replace damaged equipment. Your business interruption policy will help cover payroll and a temporary location for you to operate.
A BOP can include other coverages that vary from industry to industry and one insurance company to the next. An agent can help navigate coverage solutions and determine the best types for your barber shop.
Insurance Coverage a Barber Shop Should Consider
These are a few other insurance policies barber shops and salons should consider in their business insurance package.
Employee-Related Insurance Coverages
There are a few employee-related coverages that any business owner should consider.
- Workers’ compensation insurance: Workers' compensation insurance is required in almost every state. It’s designed to protect your employees and your business from risks. If an employee is injured in a work-related incident or has an illness related to working conditions, workers’ comp can pay for their medical bills and lost wages.
- Employee dishonesty coverage: This coverage provides protection for your business if an employee were to steal products, equipment, or money from you. The insurance company can compensate you for the loss
- Employment Practices Liability Insurance: This insurance protects business owners and managers if accused of harassment, discrimination, wrongful termination, etc. It can cover the cost of a lawsuit and a potential settlement.
Other Policies to Consider
There are a few other liability policies barbers and salons should consider.
- Professional liability insurance: If you make an error in your job or a customer claims you are negligent, professional liability insurance steps in to help. If you use new products to color a customer's hair and it doesn’t look anything like you told them it would, they may sue you. Your insurance company would provide legal representation and handle the cost of a settlement.
- Equipment breakdown coverage: If an expensive hairdryer or other equipment breaks down due to a mechanical error or power surge, it falls under this coverage.
- Cyber Liability Insurance: Any company that handles and stores client information may want to protect their customer's best interests by protecting their data. Cyber liability coverage can pay for a client's credit monitoring if a breach occurs. It can also help cover the cost to notify them of a breach.
- Both Rental Insurance: If you rent a space from a barbershop, you may want to consider a booth rental insurance policy.
How Much Does Barber Insurance Cost?
Barbers may pay between $500–$700 a year for a $1 million general liability insurance policy. But the average numbers don't tell the whole story. Insurance companies base their rates on numerous factors, including:
- Your claims history (lower is better)
- Where your barber shop is located
- Whether or not you have employees
- The risks associated with the services you provide
- The type of insurance you choose
- The deductibles and limits you choose
- Whether or not you own expensive equipment
Other factors come into play as well, which is why we recommend speaking with an agent to get accurate insurance quotes.
Get a Free Barber Insurance Quote
Whether you’re looking to purchase a full insurance package or simply want more information, CommercialInsurance.Net is here to help. We can help you assess your barbershops insurance needs, determine the types of insurance you should get, and discuss the benefits of policies. Our insurance professionals will gladly answer your questions and help you get the business insurance coverage you need for your barber shop. To get a free quote, complete the form at the top of the page or call us at 877-907-5267.
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