Barber shops professional liability insurance is also known as E & O coverage, or Errors and Omissions. This insurance protects you legally and financially if a customer sues your company for professional mistakes. Whether the lawsuit has merit or not, your company will have to deal with the claims each time they arise. This costs you in both time and money in each instance.
If a customer comes into your barber shop and asks you to cut his hair in a mullet style, you will proceed to do so. Afterwards, the customer may claim that your services caused him to lose a job opportunity. Even though he may not have known what type of haircut he would get when he requested a specific kind, he may try to make a claim against your company for the perceived losses or damages. Barber shop professional liability insurance helps you pay for the legal defense expenses you will have regardless of whether you are actually at fault.
Depending on how you have your errors and omissions coverage set up, barber shops professional liability insurance can also pay you for wages you may lose while spending time in court defending against a client’s claim. And it can pay the client’s award or settlement amounts if applicable.