Owning your own barbershop, hair, nail, or beauty salon is your dream. You’re either in the process of starting one, or you’ve been in business for a little while. No matter what business you’re in, small businesses take a ton of work – but there are a few things many don’t think about. What happens if a customer has an adverse reaction to chemicals you’re using on their face or hair? Or if there’s a serious drainage issue in your salon? What now?

Thinking about whether or not you’ve got the right type of insurance is probably the last thing you want to do. After all, beauty and grooming is what you’re in business for, not insurance! What are things you need to consider?

Business property coverage: This is the most commonly known type of business insurance. This coverage ensures you get reimbursed for your losses in the case of a vandalism, or a fire in the neighboring shop spreads to your shop.

General liability coverage: What happens if someone trips on our anti-fatigue mats and breaks their ankle, or their expensive designer handbag gets ruined from an accidental bleach spill? General liability coverage can protect you against injury claims, but it can also protect you against copyright infringement, libel/slander, and false or misleading advertising claims, which, according to the Small Business Administration (SBA), is particularly important now that our society is becoming increasingly litigious.

Business interruption insurance: Here in the Prescott area, we’re in a high wildfire risk zone, and we have monsoons. If a storm, a fire or another major event were to cut power to your shop, or if your shop was so damaged that you couldn’t reopen for an extended length of time, you and your employees might lose critical income. In such circumstances, this type of coverage can help replace lost profits so you can get back on your feet. Depending on your policy, it may also cover your workers’ salaries while you relocate or get your business running again.

Professional liability insurance: Also called “errors and omissions” insurance, this type of policy can help protect you from customers who claim you made a technical mistake while providing hair, nail or other salon services like massages. According to the Insurance Information Institute (III), this type of liability coverage is a “specialty” addition not usually included in typical business insurance policies.

Other types of coverage you might also want to consider include:

•  Data compromise coverage can cover theft, loss or accidental release of personal information held by your business.
•  Employment practices liability coverage provides protection from lawsuits by employees or former employees
•  Equipment breakdown coverage provides extra protection in case your phones, electrical, heating and/or air conditioning or other key equipment fails or is damaged.

Hooray! You’re massively successful and there’s enough demand a second location in the next couple towns over. Make sure that your second location is covered when you build, buy, or lease. Unexpected events happens. We’ve seen fires claim businesses, vandalisms, and other oddities occur. You need to be prepared for them in the event they do happen. This will minimize your liability and protect the future of your business.

If you’re not sure what coverage is right for you and your business, take an hour to sit down with us. It’s the best time investment you can make to make sure you’re not blind sighted by any major liabilities, lawsuits, or unexpected out-of-pocket expenditures.