Insurance for Beauty Salons and Barber Shops
Beauty shops and Barber Shop cut, style, trim, color, and apply permanent wave or straightening solutions to hair. Other services may be offered, such as wig cleaning and styling, massage, nail care, tanning beds, cosmetic consulting, and electrolysis. Although salons traditionally catered to women, many salons now offer their services also to men. Services may be offered on a walk-in basis, by appointment only, or both.
Recommended Insurance Programs for Salons and Spas
Beauty shops are subject to state regulations to reduce possible spread of disease. In addition, each beautician, manicurist or other professional must be licensed. Shops may employ professionals or may rent space to them as independent contractors. The status of the various professionals must be determined since it may impact how coverages apply.
Coverages Recommended for Salons and Barber Shops:
Other coverages to consider for Beauty Parlors:
Building, Bailees Customers Floater, Employees Tools and Equipment, Employment-related Practices Liability
Common Risks and Needs Associated with Salons
|General Liability Insurance|
General liability exposure is moderate due to public access to the premises. Aisles should be adequate and free of hair clippings and debris with flooring in good condition, no frayed or worn spots on carpet and no cracks or holes in flooring. Tanning beds, massage, and electrolysis services provide additional premises exposures that need careful control. Tanning services provide a special set of exposures that may need the services of specialty markets as customers may be burned by overexposure to lighting used in the beds.
Injuries to professionals who are independent contractors are part of the premises liability exposure instead of workers compensation. Parking lots and sidewalks need to be in good repair with snow and ice removed, and generally level and free of exposure to slips and falls. Security of visitors in parking areas is often deemed the responsibility of the owner or operator of the premises. Factors affecting the risks include exterior lighting, fencing, and any other security measures in place.
Product liability exposure may also exists for salons if the beauty shop sells shampoo and other items to customers. Of particular concern are any products that are non-standard, independently produced, or proprietary.
|Professional Liability Insurance|
Professional liability exposure depends on the services offered. The stylists’ training, experience and background are important considerations. Simple wash and cut operations have incidental exposures while salons that offer other types of services will have higher exposure. Because of the large number of customers served, a significant, although easily avoided risk, is the transmission of diseases and vermin such as lice. The absence of simple hygienic practices like hand washing and disinfecting solutions for combs and brushes may indicate a morale hazard. Permanent wave solutions, hair straightening chemicals, and dyes can cause considerable hair and scalp damage. Hazards may increase in the absence of procedures to test for allergies and skin reactions.
Property exposure consists of a small office and the customer service area. Ignition sources include electrical equipment, heating and air conditioning. Fires may result from poor wiring, overheating, and poor maintenance. Age and condition of the equipment is important. Housekeeping has a significant impact, since hair trimmings are flammable. While most of the chemicals used in the personal applications are not flammable, some may contain alcohol. Ownership of personal property may need to be addressed. Professional equipment such as scissors and electric clippers is quite costly, and is commonly owned by the particular employee or independent contractor.
|Hired and Non-Owned Auto|
Hired an non-owned auto exposure for beauty shops is generally limited to employees running errands or picking up supplies for the salon. Employers should consider coverage or ensure employees don’t use their vehicles for work-related errands.
Inland Marine Coverage
|Inland Marine Coverage|
Inland marine exposures are from valuable papers and records for customers and suppliers. If employees provide their own tools, there may be an employees tools and equipment exposure. If the professional goes to the client’s premises to perform services, there may be goods off premises or in transit. There may be a bailees exposure with wigs or other hairpieces, or from storage of customers’ goods at all-day events offered by some high-end salons.
|Workers Compensation Insurance|
Workers compensation exposure is generally limited to minor cuts and scratches from scissors, burns from chemicals, and repetitive motion injuries. Leg and back injuries may result from standing long hours without resting. Losses also can come from eye and skin irritants resulting from the chemicals. Shops with more than one chair might qualify as multiple sole proprietorships, rather than businesses with employees. The contractual relationship helps determine the workers compensation exposure, although regulatory definitions of employee may supersede the contract terms.
Liability Quotes for Beauty Salons
General Liability Shop.com offers affordable liability insurance quotes for salons and barbers throughout the U.S. Our Salon programs include all lines of business insurance, as well as our Target programs for business owners policies (BOP). Contact one of our business insurance Specialists today at (800) 900-8657, or start a quote online now.
Our Top Carrier Solutions for Salons and Spas
Beauty Salon and Barber Shop Liability Classification Codes
Commercial insurance companies use various liability classification systems in order to classify and rate coverage premiums for Salons and barber shops. Here are the most common business insurance classification for salons:
Business Liability Category: Service Business
SIC Business Insurance Codes:
• 7231- Beauty Shop
• 7241- Barber Shops
NAICS Liability Classifications:
• 812112- Beauty Shop
• 812111- Barber Shops
Business ISO General Liability:
• Code: 10115- Beauty Parlors and Hair Styling Salons
• Code: 10113- Barber Shops
Common Workers Compensation Class Codes:
• 9586- Barber Shop, Beauty Parlor, Hair Salon, Manicurist, Tanning Parlor, Tattoos
We have several insurance companies offering more affordable pricing for Beauty Salon BOP polices. Our BOP programs include both professional and general liability insurance coverages.
Learn more about a Business Owners Coverage.