Top 3 Insurance Tips for Cosmetology Entrepreneurs
March 30, 2015
There’s no denying the fact that cosmetology is big business. With nearly $85 billion in annual sales in the U.S. alone, the industry makes up a major segment of the American economy. And it’s easy to understand why – cosmetologists, many of whom are entrepreneurs, tap into a market that captures the most basic of human desires – to look, feel, and smell our very best. It may not be the most glamorous aspect of the business, but ensuring that you have specialized cosmetology insurance coverage for your specific needs as a healthy and beauty entrepreneur is critical to your success. Whether you spend your days snipping, plucking, coloring, or blow-drying, you need to be sure that you’ll be protected in the event of an accident or mistake. To make sure that you and your business are protected, here are our top 3 tips for getting the right insurance coverage. #1: Don’t Miss the Cut – Keep up with Regulatory Requirements First things first – make sure that your insurance coverage meets minimum cosmetology insurance requirements. It is important to recognize that coverage requirements for cosmetology professionals can vary by state and locality. There are also federal requirements too. We recommend that you stay in contact with your state board officials so that you’re informed if regulations change. #2: Maintain Your Monthly Regimen – Check into Flexible Payment Options A penny saved is a penny earned, and checking into flexible payment options can help you avoid fees and lock-in discounts. Look for providers that offer monthly payment plans to get the most flexibility for your budget. Remember that getting a salon insurance quote should not cost you anything and you can even compare different insurance policies, so don’t be afraid to shop around. #3: Get the Right Fit – Customize Coverage for Your Company Make sure your insurance is as unique as your business. Whether your company focuses on pedicures, acupuncture or blow-outs, it’s important that your coverage is tailored to your specific risks. It doesn’t matter if you’re at fault or if the shampoo girl is to blame; your business could take the fall. Here’s how you can protect yourself.
- General Liability Coverage: General liability insurance protects your business from another person or business's claims of bodily injury, associated medical costs and damage to property. For example, a new client enters a salon, trips over a blow drier chord and falls, injuring themselves. The client sues for damages. General liability insurance would protect you if such a claim is made.
- Professional Liability Coverage: Professional liability insurance, also called errors and omissions insurance (E & O insurance), protects your business if you are sued for negligently performing your services, even if you haven't made a mistake. For example, An aesthetician applies a chemical peel to the client's skin, but the client had recently had a lot of sun exposure, and the peel causes painful and unattractive skin burns. The client sues the esthetician. Professional liability insurance protects you if such a claim is made.
Beauty may only be skin deep, but without the right coverage your liability could run much deeper. Follow our tips and make sure that your business is ready for the runway.