A pro hair stylist or barber will consider the client’s hair type, face shape, and lifestyle when helping them choose a cut, color, or style. An expert nail technician can provide good advice on cuticle oil and hand lotion for hydration, as well as base and top coats to protect and seal nail polish.
However, when it comes to choosing between general liability coverage or a business owner’s policy (BOP), even the most talented and skilled beauty professionals might need a little help to know what’s best for them.
Not to worry, we’re here to help.
Understanding the Tools of the Trade
Knowing whether to reach for shears or trimmers or whether you need to use cuticle nippers or nail clippers requires knowing what each does best. The same is true with insurance. Let’s start with general liability.
General liability insurance.
As a cornerstone coverage for many small businesses, general liability (GL) can help cover the costs of claims, medical bills, legal expenses, and more – which often can run into tens of thousands of dollars. It can help cover:
Third-party property damage.
General liability policies can help cover expenses if you accidentally break, damage, or destroy a client’s personal property.
Third-party injuries.
If a customer is injured during an appointment, a general liability insurance policy can help cover their medical expenses.
Advertising injury.
A GL policy can help cover claims and legal expenses if you’re sued because of your business’ advertising, marketing, or social media activities.
While GL can cover a lot, it doesn’t cover everything, including your own tools, your building, or professional errors (like a chemical burn or hair damage from a botched color application).
Business owner’s policy (BOP).
This coverage is designed to help protect your shop or salon from a range of common risks without the hassle of managing multiple policies. A typical policy would include these coverages:
General liability.
As mentioned above, general liability covers costs from third-party accidents and third-party bodily injury, as well as damage to someone else’s property and personal or advertising injury claims.
Commercial property insurance.
If you have a shop, salon, or other building for your business, commercial property insurance can cover damages caused by fire, theft, weather, or other similar events. It can also cover damage to physical assets such as inventory, supplies, equipment, tools, and machinery.
Business interruption insurance.
If your business is forced to close for a period of time, business interruption coverage can help pay for lost income which can help get your small business back up and running sooner. This is also known as business income coverage.
How to Find the Policy That’s Best For You
Chair and booth renters.
If you rent a chair or a booth, or if you work from home or are fully mobile, you may want to consider general liability insurance. It can provide financial protection against accident claims like these:
- A nail tech accidentally spills nail polish remover that damages a booth’s countertop or a client’s designer purse.
- A client getting their hair done might get a minor cut from an unattended sharp object on a counter. In another instance, their mobile phone might get knocked into a shampoo bowl.
In both cases GL coverage could help cover the costs to repair the damages or replace the items.
Salon and shop owners.
If you work out of a space that you own or lease and you own all fixtures, furniture, tools, and inventory, BOP coverage could make more sense for you. In addition to GL-related claims like those above, a business owner’s policy can help in situations like these:
- An overnight fire completely ruins your salon, destroying furniture, equipment, and all of your inventory and supplies.
The commercial property insurance coverage of your business owner’s policy can help with restoring your salon space, replacing your chairs, sinks, and other fixtures, and replenishing the lost inventory and supplies.
Of course, all of that takes time, which means you could find your business temporarily shut down with no revenue coming in. With a typical BOP in place, you would also have business interruption insurance. It can help cover the income lost during the salon repairs.
Along with covering money that’s not coming in, business interruption insurance also can help cover the money that’s going out for paying certain expenses, such as:
- Payroll
- Fixed costs such as operational expenses
- Loan payments and taxes
And it can help with other expenses you may incur while you’re getting your business back up and running, including:
- A temporary relocation
- Training costs on new replacement equipment
A business owner’s policy also can include other coverages, such as:
- Cyber insurance
- Employee theft coverage
- Forgery coverage
- Equipment breakdown coverage
Best of all, getting all of these coverages with a BOP is often less expensive (and less time-consuming) than buying them separately.
| Business Situation | Common Coverage Purchased | Benefits |
| Barber/hair stylist | GL | Helps cover the costs of claims, medical bills, legal expenses, and more. |
| Barber shop/hair salon owner | BOP | Includes GL insurance plus coverage for your business property, interruption to your business, and more. |
| Nail technician | GL | Helps cover the costs of claims, medical bills, legal expenses, and more. |
| Nail salon owner | BOP | Includes GL insurance plus coverage for your business property, interruption to your business, and more. |
Find Coverage to Fit Your Style
Your clients come to you for beauty and style advice. Millions of small business owners worldwide come to us to help them find the insurance they need to protect their livlihoods. We make it fast and easy to buy insurance. In fact, if you have a little time between appointments, you can get quotes from leading insurers in just 10 minutes.
Most customers find just what they need and buy online, but we also have licensed agents you can speak with to answer questions and help choose among your quotes. They’re here M-F, 8 a.m. to 8 p.m. ET at 855-869-5183.