Salon and Spa Insurance 101
When you own a day spa, the treatments and services you provide to your customers include a high level of personal interaction. And the more personal interaction your business has, the higher the exposure to liability risks. Whenever you hire a new employee, invest in more advanced equipment, and begin selling new products, you increase litigation risk. While your older insurance policy may have fit your requirements once upon a time, it’s essential to review it as your business grows.
Scroll down to learn how to protect your image business from a financial catastrophe and lawsuit by choosing the right spa insurance policy.
What is Salon Spa Insurance?
Spa and hair salon insurance are a kind of commercial insurance tailored to the specific risks this niche faces. As the owner of a salon and/or spa, you need to be sure you’re protected against major risks that could seriously disturb your line of work. These risks include property damage, employee theft of cash, client injuries, employee injuries, Covid-19 infections, and more.
What Does It Include?
A standard salon needs general liability insurance, commercial property insurance, professional liability insurance, and workers’ compensation insurance. Certain insurance providers offer a BOP (business owner policy), a combination of insurance policies required for business owners. Plus, it’s a more cost-effective solution.
- General liability – It protects your salon from third party injury and damages. For instance, a customer slips on a pool of spilled massage oil while in your building and is injured. General liability should cover their injury. Best for slip-and-fall mishaps, damaged customer property, and slander or libel lawsuits;
- Professional salon liability insurance – It covers lawsuits related to work performance, such as a customer claiming poor results from a facial. Suitable for customer dissatisfaction over skin treatment, accusations of negligence, and claims that bodywork led to injury;
- Commercial auto – Commercial auto insurance protects your business’s vehicles, making it a crucial image business coverage, particularly for mobile spas. Also, most personal auto insurance policies won’t cover accidents that happen while a vehicle is being used for a business. Appropriate for property damage repairs, medical care, and the costs of car accidents;
- BOP – A business owner policy merges commercial property insurance with general liability insurance into one suitable coverage. Convenient for client injuries, damaged customer, and business property;
- Workers’ compensation – Workers’ comp covers your employees if they become ill or injured as a result of their work. Adequate for employee medical expenses, missed wages, and legal costs.
Other forms of this insurance may include:
- Renters liability – Pays for the damage to the building your spa business rents;
- Fire liability – Protects you should candle, a heating element or other equipment causes a fire to the space you rent;
- Child care coverage – Covers your business if you provide babysitting services for your customers throughout treatment;
Products liability – It covers claims against you if the customers allege they were injured due to equipment failure
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FAQs
The cost is specified by a diversity of factors, such as business location, number of employees, and specialty. For instance, a mobile spa company will have a different cost to insure than a day spa firm.
At any spa, a client could slip in a mineral bath or get an allergic reaction to a rejuvenating product. Salon insurance covers the cost of repairing damaged property, legal fees from dissatisfied customers, and so on.
If you own a day spa, you need insurance covering each technician for all of the treatments they deliver. Many salon insurance policies exclude certain services from coverage, so you must carefully examine your plan to ensure there are no holes in policy.
Independent insurance agents specialize in matching the most appropriate policy to the business in need. Shopping around for insurance policies can be challenging, time-consuming, and confusing. An independent insurance broker’s role is to clarify the process.
They’re also there to make sure you get the best deal and the one that fits your unique needs. Agents shop and compare insurance quotes for you, and they’ll simplify all the jargon so that you understand precisely what you’re getting.
Most beauty salons in the USA are one-shop places, or small, local chains. Their size makes them more vulnerable to financial loss due to storm, fire, lawsuit, or burglary. All it takes is a fire to destroy your property or a bad bleach job to ruin your business if you don’t have the proper insurance.
How to Get Salon Spa Insurance
Learning how to get image business insurance that meets your exact needs is easier if you break it down into small steps. Follow these 5 time-saving steps to get business insurance designed to your specific needs.
Research – When was the last time you purchased something that needs assembly and you ignored the instructions? How did you know it was built properly? It’s tricky to know for sure unless you followed the steps, and ensuring your spa business insurance is no different.
Learning about small business insurance is like reading the instructions. However, you may want to skip this stage, as little as 20-30 minutes of research could save you money and time. You don’t need to become an expert, but a basic understanding of the policies will help you make better decisions;
Assess your spa business – Once you’re familiar with the basic salon insurance coverages, you should investigate which ones best match your business. Take these examples: Spa liability insurance protects you against third-party claims, including property damage, personal injury, or bodily injury. At the same time, commercial property insurance protects against damage to your spa or saloon building and business personal property due to a covered cause of loss, like fire.
Get a quote – Getting an accurate insurance quote shouldn’t be difficult, particularly if you’ve finished the two previous phases. At H&M Insurance, you can call us directly to get a customized quote with the help of a licensed business insurance specialist. They’ll answer your queries and provide you with a quote that matches your budget.
Review and buy – It’s perfect to fully understand your quote and review it for accuracy, even if you’re ready to bind coverage instantly. Request a copy of your quote, and check it with your broker. This quote review will allow you to understand your coverage better and answer any questions. Proof of insurance can typically be sent once you bind a policy, and changes to your coverage can be made anytime during the policy period.
Evaluate at renewal – A lot can happen throughout a year. A quick reassessment of your business at the policy-renewal time will let you make any modifications required to match your business’s current state. Reasons for adjusting your beauty salon insurance policy may include:
- Sale or acquisition of commercial property – If you own commercial property, you should have property insurance, typically part of a BOP. You’ll want to go through your options if you’ve acquired commercial property since your last coverage update;
- Hiring – All businesses that have employees need workers’ compensation coverage.
- Higher business risk – You may deem increasing coverage as your business grows or becomes involved in higher-risk projects. For instance, a saloon who raises customer base might want to increase its liability coverage to accommodate the increased risk;
- Reducing – Only pay for what you need. If your business eliminated employees or sold assets, remove the unnecessary policy.
Salon and Spa Insurance Experts
Whether you own a hair salon or have a day spa, we can help. Our agency specializes in all types of image businesses, from independent contractors to multi-location spas and saloons. We can introduce you salon or spa insurance policy options from several industry-leading insurance companies, and our agents have the insights necessary to help you determine which policy is best for your spa or salon.
To learn more about our spa and salon insurance policies, contact us at (619) 296-0005 or fill out the form below.
