Why Do You Need Barber Insurance?
Why do barbers need insurance? Barbers 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 customers' hair that could cause an allergic reaction. You have clients walking in and out of your building. Perhaps you manage other barbers and stylists. Barbershops 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.
Barbershop Insurance Isn't Complete Without a Business Owners’ Policy
A business owners’ policy is a convenient package of common insurance coverages any small business owner might need. It is often a great way to save money on business insurance. A business owners' policy 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 is important liability protection that covers claims of customer injuries, customer property damage, and personal advertising injury. If a client comes into your barbershop and accidentally slips and hits their head, a general liability policy will cover the medical costs for their injury. If that client sues you for negligence, your barber insurance coverage will provide you legal representation and help settle the lawsuit.
If you operate your barbershop 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. Accidents happen, and you can't rely on homeowners insurance to foot the bill should something go wrong.
A general liability often includes product liability coverage. This is necessary if you sell products such as shampoo, styling products, blow dryers, etc. If any of your products injures a customer, you'll be responsible for their medical care. General liability can cover lawsuits if a claim arises from a product you sell.
Commercial Property Insurance
Do you own your own barbershop? 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.
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. Because you have professional liability insurance, your insurance company would provide legal representation and handle the cost of a settlement. Professional liability insurance is an important piece of a barber insurance policy.
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 type of business insurance for your barbershop.
Other Business Insurance a Barber Should Consider
These are a few other insurance policies barbershops and salons should consider in their business insurance package.
Workers' Compensation Insurance
Workers’ compensation insurance is required in almost every state for anyone that hires employees. It’s designed to protect your employees if they're injured in a work-related accident. Workers' compensation insurance will pay their medical bills and replace a portion of their lost wages until they're able to return to work.
Employee Dishonesty Coverage
Employee dishonesty 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 to your barbershop business.
Employment Practices Liability Insurance
Employment Practices Liability Insurance is a business insurance that protects barbershop owners and managers if accused of harassment, discrimination, wrongful termination, etc. It can cover the cost of a lawsuit, including providing representation, covering legal fees, and paying settlements.
Equipment Breakdown Coverage
If an expensive hairdryer or other equipment breaks down due to a mechanical error or power surge, it falls under equipment breakdown coverage. Some general liability policies include this coverage. If your insurance company doesn't include it, consider adding 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 insurance can pay for a client's credit monitoring if a data breach occurs. It can also help cover the cost to notify them of a breach.
Booth Rental Insurance
If you rent space from a barbershop, you may want to consider a booth rental insurance policy. It provides comprehensive coverage that can be similar to a business owners' policy. This is the best insurance for a barber who doesn't own the shop but works as a contractor in someone else's space.
Commercial Auto Insurance
If you offer mobile barber services or work specifically with elderly clients and have to drive to them, what you get for business insurance should include commercial auto insurance. This covers you from liability if you're in an accident where you damage your car or someone else's property.
How Much Does Barber Insurance Cost?
Barbers may pay between as low as $159 per year, and on average $500–$700 a year for a $1 million general liability policy. But the average numbers don't tell the whole story. Insurance companies base their rates on several factors, including:
- Your claims history (lower is better)
- Where your barbershop 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
- Whether or not an additional insured will be on the policy
Other factors come into play as well, which is why we recommend speaking with an agent to get accurate business insurance quotes for your specific coverage needs.
Get a Free Barber Insurance Quote
Whether you’re looking to purchase a full business insurance package or simply want more information, Tivly 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 various insurance products. Our insurance professionals will gladly answer your questions and help you get the business insurance coverage you need for your barbershop. 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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