Whether you're an aspiring student, an independent contractor, or even own your own salon, spa, or barbershop - you want to be assured that you're fully covered with medical, dental, vision, and salon liability insurance.
*Product availability and rates vary by state and individual circumstances. Health insurance not currently available in AK, CT, HI, MA, ME, NH, NJ, NY, RI, VT, WA
There are tons of professions in the beauty industry that people pursue because they want the flexibility and freedom of that career path. But that flexibility and freedom can still carry risks.
Whether you're a nail technician, hair stylist, cosmetologist, makeup artist, or another profession in the beauty field, it's likely that you face risks in your day-to-day work. These risks could mean potentially high claim costs, legal fees, and paying out-of-pocket for unexpected bills.
That is, unless you have a business insurance policy.
Beyond the potential to save you from digging your small business into a financial hole, business insurance may come in handy for other reasons too.
We'll review four ways that having business insurance may not only benefit you but may also be required for you to take certain steps in your career.
4 Reasons a Beauty Professional May Need Business Insurance
1. It could be required by a venue.
If your work takes you outside the salon or your home — say at a client's home or wedding venue — then having proof of business insurance could benefit you.
Having business insurance could help protect you in the event that your client gets injured or claims you were negligent, property is damaged, there's a third-party accident, or more.
If a client files a claim against you, the venue owners could be sued, as well. Having coverage helps assure venue owners that you're protected against potential liabilities.
2. It covers at-home risks.
It's one thing for something to go wrong at a venue where you're working, but what if there's an accident at your home or in a client's home?
If you work out of your home, your homeowners or renters insurance policy may not cover you against accidents or damages that happen as a result of your work.
Imagine that a client comes to your home to get their nails done. While walking to the bathroom, they slip on water that wasn't cleaned up and sprains their ankle. The client files a claim and sues you for the cost of their medical bills.
Without business insurance coverage, you may have to pay for those bills out-of-pocket. But with insurance protection, you could be covered for those costs up to your policy's limit.
Having a business insurance policy can help ensure that if you're working at a home — either yours or a client’s — you'll be protected.
3. It satisfies leasing requirements.
If you rent a chair or space at a salon, the owner will likely have terms and conditions for you to agree to when signing the lease agreement. One of these requirements may be to have your own business insurance coverage.
While many salons do carry insurance coverage, it is typically required that those professionals who rent chairs or stations also have coverage.
If not a requirement, then it can certainly show your potential landlord or owner that you care enough about your work to take the time to protect yourself against potential risks.
4. It builds customer trust.
When it comes to getting cosmetic or other beauty work done, it's no secret that clients put a great deal of trust in who they hire. Whether you work as a hairstylist, a nail technician, or another profession in the field, you most likely spend time building relationships and trust with your clients.
As a small business owner, any step you can take to help your clients know that you're trustworthy will help. After all, they could easily choose to go to one of your competitors. Why should they choose to hire you?
Having business insurance coverage shows your clients that you understand the risks involved in your work and that you’re taking the necessary steps to protect yourself from any risks. Of course you don't want any mistakes to happen, but you're only human! With insurance coverage, you'll likely be protected from risks.
What Types of Beauty Insurance Could Help My Business?
So now that you know the four reasons why you may need business insurance, what types of coverage should you look for?
General liability insurance (GL), commonly known as commercial liability insurance, can help protect you from:
● Property damage
● Third-party accidents
● Bodily injury
● Personal and advertising injury
● And more
Imagine you're a hair stylist and a client hired you to come to their home and color their hair. While working, you accidentally drop hair dye on their sofa. It was an honest mistake, but the sofa is brand new and was very expensive. Your client is unhappy and files a claim, suing you for the cost of replacing the sofa.
With a business insurance policy, you could be covered for the cost of replacing the sofa, up to your policy limit.
Professional liability insurance (PL) is coverage that helps protect you from:
● Negligence or alleged negligence
● Legal fees
● Alleged omissions
● And more
Imagine a client comes in to get her hair dyed before her wedding day. The dye ended up turning her hair green, instead of the desired blonde color. In trying to correct the mistake, the product you use makes her hair extremely dry. She's furious, claiming that her wedding photographs will be ruined.
The client sues you for the cost of the hair dye appointment and for the cost of the wedding photographer. Without coverage, you may have to pay these fees out-of-pocket. But with a professional liability insurance policy protecting you, you could be covered for those fees, up to your policy's limit.
Business Insurance Helps Your Beauty Business
Knowing why you need insurance coverage and how it can help you succeed in your business is important to learn. But just like deciding on which products and brands to use in your work, deciding on a policy that's right for you can take time.
That’s why it’s a good idea to check out Simply Business, a digital insurance platform that makes it easy for beauty professionals to get insured. Use the free quote comparison tool to get policy quotes from the nation’s top insurers — all in under 10 minutes.