Cosmetologists are specialists in the art of beauty. Whether you provide professional make over services alone or you include hair styling, manicures and pedicures, your cosmetology business allows you to interact with – and help improve the lives of – your customers every day. You may have started your business because you love helping people feel beautiful, but to keep the business successful you must also manage the details. Part of running a successful cosmetologist business is making sure you carry the appropriate levels of small business insurance.
General liability insurance is important for businesses like yours that have a constant flow of customers going in and out of the doors. This business insurance can protect your company and its customers if there is an accident at your store, with products you’ve sold, or with services you’ve rendered. This coverage is quite broad and it grows as your company grows. This ensures that new cosmetology locations and services are automatically protected when you add them. Some of the key areas of protection include:
General Liability Insurance Includes:
- Premises Liability – When customers have an accident at your cosmetologist parlor, they may suffer injuries that require hospital or other medical care. Premises liability is the portion of your general liability insurance that pays for these medical expenses. This coverage also protects your company from having to pay out of pocket when a customer’s personal property is damaged on your business premises.
- Products Liability – When you sell products to people, you can be held legally liable and responsible if the products cause harm, injury or damages. The products liability portion of your insurance policy helps pay for those injuries and damages. It can also pay for your legal defense fees if necessary, such as when a customer or competitor makes a legal claim against your advertising.
- Completed Operations – After you have completed the cosmetology services for your customers, there is a risk that problems will be discovered later. If a customer is severely allergic to make-up that you used on them for example, and they must seek medical attention for the reaction, they may sue your company for those expenses. Your completed operations portion of a general liability policy can pay for those damages, as well as provide funds for legal defenses and settlements if needed.
Business Owners Policy
General liability insurance is included by default with another type of business insurance known as a BOP, or business owners policy. The BOP focuses on protecting your company from suffering financial hardships that can be caused by the loss of business assets. A BOP protection against losses of tangible and intangible business assets, such as your cosmetology equipment and your daily cash receipts. You can tailor a BOP to provide coverage in only those areas that you need. Examples of options include:
- Buildings and Contents
- Business Income and Extra Expense
- Electronic Data
- Newly Acquired or Constructed Buildings
- Employee Dishonesty Coverage
Business auto insurance protects your cosmetology company from suffering the financial consequences of an auto accident. This coverage can pay for bodily injuries sustained in an accident as well as property damages. Other levels of coverage help protect you from losses caused by theft, or natural hazards such as hail storms.
If you have employees at your cosmetology parlor, you are required by law to provide protection to them with workers comp insurance. If one of your employees has an accident while working and sustains injuries, the workers comp coverage will pay for their medical bills.
Commercial umbrella coverage provides you with extra protection above and beyond the maximum limits of your other business insurance policies.