Hair stylist insurance

What Type of Hair Stylist Insurance Do I Need?

What Insurance Should a Hairdresser Have?

Not an expert in hair stylist liability insurance? Don’t worry — you don’t have to be. There are a few types of insurance policies available to you, and we’ll explain each one.

General Liability Insurance for Hairstylists

General Liability (GL) insurance is the broadest type of hair stylist insurance. This policy covers expenses from accidents or damages, as well as bodily injury to a client. You’ll also have the option to add protection for your tools and equipment, which would offset the cost if they are damaged.

Nobody plans for accidents to happen in their business, but unfortunately, they do. Without business insurance, you’d be stuck with the bill for any damages and legal fees. Did you know that the average claim for property damage or accidents for a small business is $30,000?

An expensive claim could cause a severe setback in your business or personal finances. That’s why we suggest general liability insurance for hair stylists, whether you own your salon or rent a chair at someone else’s shop.

Still not sure what hair stylist insurance could cover? Let’s review a scenario. One day you’re carrying an armful of products, and you accidentally drop a shampoo bottle that isn’t tightly sealed. The shampoo spills on the floor, and you go to the back to get a mop. In the meantime, a client walking to the hair washing area slips and falls on the shampoo slick. They tried to brace their fall and ended up with a broken wrist and a hospital bill.

If you didn’t have general liability insurance, it’s likely that you would need to pay the client’s medical bills. If you don’t have that cash in the business, you’d have to turn to your family’s finances. However, your general liability insurance may cover the client’s medical bills. General liability insurance would also help you with legal fees, if the client sues you.

As a review, general liability insurance typically covers:

• Third-party bodily injury to another person
• Third-party property damage
• Personal and advertising injury
• Medical expenses
• And more

Here’s what general liability insurance usually doesn’t cover:

• Damage to your own property
• Professional services
• Workers compensation or injury to your employees
• Damage to your work
• Motor vehicles while in business use
• Intentional injury or damage
• And more

Professional Liability Insurance for Hairstylists

You always do your best to give clients an enjoyable experience, but what if a client states otherwise? Professional liability (PL) insurance protects you in case your client claims that you, your employees, or your business were negligent in providing your professional services.

What does it mean to be “negligent,” though?

Let’s say you are coloring a new client’s hair. As their lightener is processing, they complain about a burning sensation. You immediately wash their hair, but they later claim they have a chemical burn on their scalp, causing lasting damage. They threaten to sue you for damages and distress.

This same scenario would play out very differently for a stylist with professional liability insurance versus one without. Without PL coverage, a hair stylist would need to pay the costs of their negligence , as well as any legal defense. But a hair stylist with professional liability insurance may not have to personally pay for all the sky-high medical and legal bills.

Professional liability usually isn’t required by state law, but having it can mean the difference between a long career and a potentially business-ending setback.

Here’s an overview of what professional liability can cover:

• Negligence or alleged negligence
• Legal defense costs
• Omissions or alleged omissions
• Claims and damages
• And more

Now let’s take a look at what PL insurance usually doesn’t cover:

• Intentional acts of negligence
• Property damage
• Medical expenses
• Bodily injury
• And more

Workers’ Compensation Insurance for Hairstylists

Of the three insurance types we’re covering, workers compensation insurance is the one you’ve most likely heard of. That’s because federal law requires nearly all employers to have it. This type of coverage, also called workers’ comp, is a must-have if you have one or more employees, and it covers costs if employees get sick or injured while working for you.

Each year, many employees get sick or injured on the job, and no workplace is entirely accident-proof. In 2018, work injury costs totaled over $170 billion. A workers comp claim includes medical expenses, lost wages, and more. The average claim for a workplace injury is $41,000.

Just like the other insurance types, workers’ compensation insurance alleviates your financial burden if the worst-case scenario comes true. A hair salon is filled with tools and products that could cause injury if mishandled, as well as the possibility of slips and falls that exist nearly everywhere.

Workers’ compensation insurance for hair stylists can cover:

• Medical payments
• Lost wages
• Rehabilitation expenses
• Death benefits

Do I Need to Get Insurance for My Hairstylist Business?

Both salon owners and independent hair stylists benefit from having business insurance. By paying a little each month toward a policy, you ensure that your financial base won’t be affected after a single accident or upset client.

Everyone thinks that something bad could never happen to them, and while we wish that were true, an accident or negligence claim is possible for any business. A single slip of the scissors or miscalculated combination of products could have a lasting impact. Everyone has off days or seconds of distraction, and hair stylist insurance ensures that those human moments don’t jeopardize all the hard work you’ve invested.

You may not even have to make a mistake for a lawsuit to come your way, along with the associated expenses. The courts could rule in your favor against a negligence claim from a disgruntled client. Even if you don’t have to pay the negligence claim, you could face thousands of dollars in legal fees for your defense.

Your business is too important to risk not having business insurance. It’s your passion and livelihood, and that’s exactly why we recommend hair stylist insurance.

Still wondering whether insurance is worth it or not? Here are the average costs small business owners — like hair stylists! — could have to pay if they didn’t carry insurance:

• $30,000 for property damage/accident claims
• $39,000 for work injury claims
• $50,000 for reputational harm claims (e.g., cases of slander or libel)
• $20,000 for a customer slip-and-fall case

Insurance isn’t just for protecting your bank account in case of an accident. Proof of insurance may be a requirement for renting space for your business. Plus, some states have a legal requirement for hair stylists to have general liability insurance.

A framed certificate of insurance (COI) also goes a long way in building trust with clients. Displaying your coverage lets clients know you take your business seriously and that you’re prepared to handle any claims that may come your way.

Ready to protect your work and get covered? Compare hair stylist insurance quotes from top insurers in under 10 minutes!