Having your own salon can be an incredibly liberating and empowering experience. You get to freely choose your own schedule, pick your own clients, be your own boss, and design your entire business to suit your own personal tastes. With that freedom from the restraints of working for someone else’s salon, however, comes a great deal of responsibility. And responsibility and liability go hand in hand. Without protection of a corporate entity behind you, you are left on your own to handle the finer points of owning your own business, and that means that you’re also left on your own in the case of a problem. Picking appropriate cosmetology insurance for your salon is one of those safety measures that often gets overlooked. Oftentimes the importance of choosing insurance is underestimated because, regarding lawsuits or emergencies, many small business owners think “it could never happen to me.” I’m here to tell you first hand it can happen to you. So, with that being said, we at Elite Beauty Society are here to share with you five important reasons that your salon needs cosmetology insurance.
1. A Client Gets Burned or Injured
Imagine flat ironing a client’s hair only to have her turn her head at the wrong time and get a third degree burn on her neck or ear. Or imagine using a chemical dye or chemical straightener on a client’s hair, and they have some sort of unexpected allergic reaction to the product. This can happen to even the most trained hair stylists. Sometimes accidents happen and sometimes those accidents aren’t your fault. Either way, you and your salon will have to bear the brunt of a liability suit if the client feels the need to take things to court. If the client has medical bills, trust and believe that those will be brought up in the case of a suit. Liability insurance will provide coverage that protects both you and your salon from the financial impact of a liability claim. It is necessary to protect yourself from even the unlikely possibility of a client taking you to small claims court.
2. Products Get Recalled
Many salons sell products to their clients right off their shelves. It allows them to show the client how the product works with the hair services and then turn a profit by selling that product to the client that now sees the benefit of using it. While there are benefits to selling haircare products at your salon, products do get recalled from time to time. If those products that you use or sell are recalled because of a manufacturing flaw or a chemical imbalance, you could be partially liable for any illness or injury that affects your client. A faulty product suit can negatively affect all parts of your small business from the costs of restocking all the way down to your reputation. Clients may feel that you didn’t properly vet the company before using and selling their products and may question your judgment as a salon. If your clients believe that you put your personal profits before the safety of the customer, your salon will suffer as a result. Insurance can help to cover any sort of business interruptions that result in a financial loss. It’s always to protect yourself and your business in the case of a “what if” scenario.
3. Products and Equipment are Stolen or Damaged
Salon equipment is very expensive. Good flat irons cost in the hundreds and hooded dryers are even more expensive. A salon station can cost as much as $4,000. In the case of a break in, or theft by a former employee or customer, stolen equipment insurance can be your saving grace. With proof of theft, stolen equipment insurance will cover the costs of the replacement items and have your salon up and running quickly so that you don’t incur any more financial loss from having to close shop for lack of equipment. If for some reason your salon equipment needs repairs or replaced due to daily wear-and-tear, or damages, small business insurance often covers the cost of the repairs. In either scenario, having the cosmetology insurance really is the safe bet.
4. Fire Damage
Fire liability is a great option for salons that have a lot of flammable products around. You may be thinking this only applies to nail salons with lots of acetone and flammable nail products, but plenty of hair care products are highly flammable. Mousses, hair sprays, oils, and foam products are indeed highly flammable and carry some amount of risk along with them. If, for any reason, there is a fire that starts within the walls of your salon and you are sued by a client as a result of the fire spreading to your flammable products, your legal fees and settlement are covered, up to the limits of your insurance policy. This type of insurance is especially helpful, as there is always high cost and injury associated with fires.
5. Damage to the Client’s Hair
There are all kinds of salon horror stories wherein a client’s hair gets singed off with a straightener, their hair falls out from a relaxer, or their hair gets brittle and damaged from a bad dye job. This type of situation can really cause a financial disaster for a salon. Even if you or your employed stylists can cut the hair and hide hair mishap, the client may leave your salon fuming and distraught. One of the common reasons a client will sue a salon is because a stylist has destroyed their hair. If in that scenario you find yourself served with a lawsuit, you can rest assured if you have cosmetology liability insurance. Insurance in this case is there to help you pay for litigation and restitution in a worst-case scenario.
When choosing insurance for your fitness salon, you must take into consideration all the aspects unique to your situation. There are other types of cosmetology insurance that may be helpful for your salon do depend on certain variables but should all be considered for your own protection and liability. Pick the cosmetology insurance that fits you and your business needs the best. Remember that some coverage is better than others, some are costlier than others, etc. Coverage may vary from company to company, so it is important to pay attention to the finer details and make the most educated decision possible. The best thing you can do for yourself is to sit down and read each policy carefully, making sure that your needs are met and that you are covered no matter what the situation is.
Published by Samantha Brown