Insurance for Spas and Salons
At LG, we pride ourselves on the value-added services that we offer to small business owners in the salon and spa industry. We have you covered so that you can focus on what you do best in making your customers feel pampered and relaxed.
As a salon and spa business owner, you face heightened industry-specific risks like personal injuries as a result of professional negligence, vandalism or theft. Due to the complexity of some of these risks, we recommend having three types of insurance: General Liability, Professional Liability, Worker’s Compensation and Property Insurance. Below is information regarding these coverage options.
Popular Insurance Options for Spas & Salons
General Liability Insurance protects you against bodily injury lawsuits, property damage claims, personal injury lawsuits involving libel or slander, claims arising from the physical eviction of a person while on your premises, and claims arising from false advertising. Due to the variety of services and products in a salon, there is a lot of risk exposure.
Some examples of when General Liability Insurance will be needed for salon and spa owners:
- Product residue made the floor slippery, a client falls and hurts themselves, they sue for bodily harm.
- A client purchases a hair care product from your store, uses it at home, and has a severe allergic reaction, they sue you for damages.
- You’ve been operating under a certain business name for several years. Unbeknownst to you, another company holds the copyright for that name, your business is sued for copyright infringement.
Should your salon or spa have General Liability claim, your coverage will help you pay for expenses like legal fees, settlements, judgments, and immediate medical expenses.
Professional Liability Insurance coverage, also known as Errors & Omissions (E&O) or Malpractice Insurance, is designed to cover professional services, including different spa and salon treatments. A professional liability insurance policy may protect against claims made by customers who received a service you provided, and they did not have the expected outcome or promised results.
For example, cosmetologists and skin-care professionals work with high-heat tools and chemicals that are potentially hazardous, so the potential risk situations are extensive. Here are some other examples of liability situations:
- A client believes you did not complete a facial treatment properly because their skin is left very sensitive and burns severely in the sun.
- A cosmetologist leaves a client’s new hair color to set too long, causing chemical burns on the scalp.
- A client receives a massage and believes it has caused her severe back pain.
No matter how well trained and careful you and your staff may be, there is always room for human error. Professional liability insurance can help protect you from these types of claims, which are all but unavoidable. Remember, if you are uninsured, your personal assets could be at risk, including your car and home, if a claim or lawsuit is filed against you.
Property Insurance for salon and shop owners, covers your valuable hair salon furnishing, hair dryers, tanning beds, and equipment. Property damage is one of the most commonly filed claims by small-business owners, and property coverage can often mean the difference between a small business staying afloat or sinking after a fire, theft, or storm. Take a look at all the types of property this policy can cover.
- Furnishings: hair styling stations, shampooing stations, reception desks, massage tables, and more.
- Equipment: hair dryers, specialized skin care equipment, tanning beds, etc.
- Tools: nail-care tools, scissors, razors, smocks, brushes, etc.
- Products: this includes the products you use on clients and the inventory you sell.
It’s likely that you’ve spent years investing in all your business property. Property Insurance allows you to easily replace essential equipment so your business can get back on its feet as quickly as possible after a loss.
Worker’s Compensation Insurance for salon and spa provides employers and employees insurance protection in case of a work-related injury or illness. This kind of coverage is state-mandated and covers lost wages and medical treatment resulting from an employee’s work-related injury or illness. It also covers court fees, legal fees, settlements and judgments you may be required to pay if an employee files a claim against you, along with their medical expenses due to work related injury or illness. While a key part of running your business is keeping employees safe at work, worker’s compensation provides you and your employees important protection.
Some examples of when worker’s compensation insurance will be needed for salon and spa owners:
- A stylist is electrocuted while using a faulty hair dryer
- An employee slips and falls on a wet floor
- A skin care specialists sues claiming that chemicals in a product used were responsible for an illness
Choose LG Insurance for Your Spa & Salon Insurance Needs
The LG Insurance Agency is a team of experts that know the intricacies of small business insurance and can help guide you through the process of getting the best and most complete insurance coverage. We understand that small business insurance for your salon and spa is an important part of ensuring the financial security of your business.
Contact our knowledgeable small business team at LG Insurance Agency. We can provide a free quote and experienced consultation to get your salon or spa business protected and insured.
The Local Insurance Experts
Working with us gives you a local team of experts that know the intricacies of insurance in Monmouth and Ocean counties and beyond. We understand that insurance is an important part of running your salon and spa business and it is our goal to help you eliminate risks.