If you run a hair salon, barbershop, or tanning salon, you probably like people. The problem is that working so closely with people comes with extra risks of accidentally injuring someone or having some other kind of financial loss. To protect yourself, you need the right type of insurance.
What Types of Insurance Coverages are Available?
Most businesses will need a mix of several different insurance coverages. These are some of the most common options.
General Liability Insurance
General liability insurance is one of the broadest protections that covers many things you could potentially be sued for. For example, it may cover medical bills if a barber accidentally cuts a customer or a tanning specialist uses the wrong settings on a tanning bed. It may also cover general injuries like a customer slipping and falling on your wet floor or ice in your parking lot.
Business Property Insurance
Business property insurance protects your tools, equipment, and supplies from things like fires, tornadoes, and theft. If you own your shop, it can cover your building as well. Keep in mind that if you rent, your landlord’s insurance policy will not protect you unless you’ve negotiated to have insurance included as a benefit of your lease.
Loss of Income Insurance
If you have to close because of a covered disaster, pandemic, or other cause, loss of income coverage can reimburse you for the lost revenue. See your policy for exactly what situations are covered and how much income the policy replaces.
Commercial Auto Insurance
If you only drive your personal car to and from work just like any other commuter, personal car insurance should be enough for you. However, if you use your vehicle to pick up supplies, give customers rides, or run other business errands, you probably need commercial auto insurance. Commercial auto insurance works just like your personal car insurance, except it covers business activities that personal car insurance doesn’t cover.
Workers Compensation Insurance
Virtually all Wisconsin business owners with employees must carry workers compensation by law. This covers your employees’ lost wages and expenses if they get hurt on the job. It also protects you from getting sued for those same expenses.
Umbrella Liability Insurance
If you’re worried about large losses and want to increase your insurance coverage, you can add umbrella liability. Umbrella insurance extends all of your liability coverages and may be cheaper to add than increasing each coverage separately.
What is a Business Owner’s Policy?
A business owner’s policy is a name for a bundle of the above insurance products that you can customize to your needs. If it’s a general business owner’s policy, you may need additional customization or to add separate coverage. If it’s specifically designed for hair salons, barbershops, or tanning salons, the default package may be right for you.
Am I Required to Carry Insurance?
Since you’re working closely with people’s health and safety, you may have a legal obligation to carry insurance. Check the requirements for your specific licenses or permits for the details. Keep in mind that these requirements are in place to protect the public not you. That means they often only require liability protection. While it’s good to have liability protection even when you aren’t required to buy it, you may also need additional optional coverages like property damage coverage to protect your business fully.
What Type of Services Does My Insurance Cover?
Hair salons, barbershops, and tanning salons offer a wide range of services that vary even between businesses of the same type. Insurance policies are often based on specific activities rather than the name of your business. So if you’re a hair salon that also does nails, you need to make sure that your insurance covers those extra services. If you don’t do nails, you don’t want to pay for coverage you don’t need. When you request your quote, the insurance company will ask for more details about your business. If you later change your services, you can update your insurance accordingly. You can generally insure any legal service as long as you have the right license and tell your insurance company.
What if You Rent Out Booths?
Some establishments use independent contractors instead of employees with each contractor renting out their own space and keeping their earnings. This will require a different insurance setup than an employer-employee relationship. Each contractor may need to carry their own insurance. The owner would carry insurance for the building as well as their own personal work. It may be possible for everyone to share the same insurance policy, but it will depend on your insurance company and the structure of the policy.
How Much Will Insurance Cost?
Insurance costs vary based on your services, customer volume, number of employees, and other factors. Small differences between how two similar businesses operate could mean a large difference in insurance premiums. No matter what, insurance costs are almost always a very small percentage of your revenues, so you can still make a profit even if you need extra protection for certain activities.
Get Help From Your Insurance Agent
Your independent insurance agent is the best source of information for complex insurance needs. They can help you figure out what coverage you need and where to find the best price. Contact Sagen & Associates Insurance now to request more information or to start your quote.