Clients visit nail salons because they trust the steady hands and professional experience of licensed nail technicians compared to any DIY disaster they could conjure up at home. Visiting the nail salon can be a brief oasis in a hectic week, and many clients view it as a necessary stop before major life events like weddings and job interviews.
But salons also have a lot of moving parts. As the owner of a nail salon, you need to know you’re protected against financially devastating accidents. That’s why business insurance for nail salons is so important. Here are six reasons that your nail salon needs the right commercial insurance.
A customer could slip while getting up from their pedicure
After a brief doze in your cushy pedicure chairs, a customer stands up and slips on a wet patch, hitting their head on the way down. An ordinary appointment just turned problematic for you, because your salon is liable for bodily injury that occurs on your property. Another scenario: What if a client sets their vintage fur coat down in wet nail polish and blames you for the irreparable damage?
General liability insurance pays for damages resulting from client injury at your salon, as well as from property damage to a client’s belongings because of your business operations. It covers legal costs if a client sues you for an accidental injury or property damage, and can even pay medical bills to help you avoid a lawsuit altogether.
Protecting your specialty salon equipment
You need a physical space, chairs, manicure and pedicure stations, a computer and UV sterilizers just to offer basic services. What if a client accidentally drives through your storefront like someone did at Great Nails in Berkley, Mich. in 2016? What if an electrical fire causes so much damage to your salon that you’re forced to replace almost everything inside?
Choosing a Business Owners Policy (BOP) combines the general liability coverage mentioned above with property insurance that looks out for your equipment. Property insurance would pay for your equipment at current value or replacement value (depending on your plan) in the event of damage from causes covered in your policy. Fire, lightning, damage from vehicles, building collapse and vandalism are often covered causes, according to the Insurance Information Institute (III).
“Business as usual” may face interruptions
Even when your business operations are on pause after a disaster, bills don’t stop. It’s a good idea to include business interruption coverage to help mitigate the costs of moving to a temporary workspace or closing your salon until you can get back on your feet. Business interruption can also occur because of an online hack that targets your customer payment and personal information. Consider adding cyber insurance to protect your nail salon.
Your salon is liable for beauty products it manufactures or sells
Nail salons may manufacture their own proprietary products or use and sell another brand to their clients. It’s a well-known fact that people can react differently and badly to beauty products. Product liability insurance is important because it protects your business “in case a product you manufacture, sell, handle, or distribute causes harm to someone or their property.”
A customer sues your nail salon over an infection
One lawsuit from an angry client alleging that your salon gave them an infection, a fungus or an allergic reaction can threaten to put you out of business without professional liability insurance backing up your services. As the III points out, professional liability insurance needs to be purchased separately from a BOP. Professional liability insurance protects your business if your professional services or advice leads to losses for your client.
Let’s look at a real-world example of why nail salons need professional liability insurance, reported by Nails Magazine: Sally Williams, an Illinois-based nail technician was working on a client’s acrylic nails when a piece ricocheted off of a light and hit the client in the eye. The next day, the client had to visit the emergency room and her regular doctor due to the acrylic particle scratching her eyeball. The client missed a week of work because of this injury. Williams says her professional liability insurance paid for the client’s medical bills and missed work, and that she could have been in serious financial trouble without her business insurance.
Protecting your team with workers compensation
It’s no secret that nail salons are full of potential health hazards, including chemical exposure and muscle injury from sitting in one position all day. Salon workers may also encounter infections from working one-on-one with clients. It’s your legal responsibility to have workers compensation coverage in case an employee gets sick or injured at work.
Is it time to retouch how your nail salon approaches its business insurance coverage? Learn more with a free quote from CoverHound today!