5 Best Insurance Policy for Barbershop

Do you need insurance for your barbershop? If YES, what type of insurance do you need? Here are 5 best insurance cover for barbershop. If you own a barber shop, there is a very good chance that one day you may see yourself on the receiving end of a litigation when an unhappy or disgruntled customer lodges a complaint against you in court.

How Do Insurance Cover Work for Barbershop?

For instance, there was the case a few years back when a barbershop was sued by an unhappy client over an alleged botched color job. The woman sued the barbershop saying that her hair was burned due to dye being misapplied, and as a result, she missed out on work by not being able to perform as a burlesque dancer or to audition for work.

Such cases, although a little extreme in their claims, is not uncommon. So if you work with hair for a living, you can become the target of a lawsuit. Barber shops cut, trim, and style hair for men, women, and children. They also cut, trim, and style beards. Ideally, there is little equipment and no chemical applications other than styling and grooming aids. Services may be offered on a walk-in basis, by appointment only, or both.

Also, have it in mind that Barber shops are subject to state licensing and regulations to reduce the possible spread of disease. Each barber is expected to also be licensed. Shops may employ barbers or may rent space to barbers who are independent contractors. The status of the barbers will have to be determined since it may impact how coverage applies.

Even the most experienced barber can one day make a mistake, and when mistakes happen, having adequate Barbershop insurance in place is important. Barbershop insurance can help protect your business from the financial fallout of a lawsuit or claim against you, even major claims that might otherwise put you out of business.

According to reports, there are around 225,000 barber shops in the United States in 2014, each of them with its own unique risks and some shared perils. However, with just one claim, a small barbershop can be out of business for good. A substantial claim could wipe out any assets and savings that the small business owner has accumulated.

Howbeit, with a few hundred dollars each year for barbershop insurance policy, your business can be adequately protected and you can breathe easier knowing that your financial future is not in the hands of a disgruntled or dissatisfied customer with an axe to grind.

3 Best Insurance Policy for Barbershop

The most common barbershop policy is general liability, which covers claims your business caused injury, property damage, or reputational harm. Barbershop insurance costs around $400 to $3,500 per year, depending on how many policies they need. Nonetheless, here are the basic barbershop insurance policies;

1. General Liability Insurance

General liability insurance covers third-party bodily injury, property damage, and advertising injury. Note that this is a core coverage for barbershop owners because claims from third parties are a common risk. Additionally, general liability often is needed for business licenses and commercial leases. Instances where general liability applies include:

1. A customer’s medical bills after they slip in your barbershop
2. A neighbor’s repair bills if a fire in your barbershop causes smoke damage in their building
3. Your legal bills if a competitor sues for defamation

General liability has products-completed operations coverage to pay for property damage and physical injury caused by defective products or faulty services. For instance, if your barbershop is sued after the shampoo you sell makes customers’ hair fall out, then the products-completed operations portion of your general liability policy covers your court costs.

2. Commercial Property Insurance

Commercial property insurance is known to cover your business’ physical assets like your barbershop and the contents within it. Policies more or less pay for repair or to replace these assets when they’re damaged by certain events, such as fire, theft, vandalism, or windstorm.

Barbershop owners should also consider for a sewer backup endorsement. A good number of commercial property policies exclude damage caused by backup or overflow from sewers and drains, which can be a pretty big risk for barbershops.

Also, have it in mind that Barbershops usually get commercial property and general liability insurance at a reduced rate by buying BOPs. Most BOPs also include business interruption coverage, which covers your lost income and ongoing expenses if your barbershop is forced to close because of a covered event.

3. Workers’ Compensation Insurance

This insurance policy provides benefits to barbers, stylists, assistants, receptionists, and other employees of your barbershop when they suffer work-related injuries or illnesses. Coverage includes medical bills and lost wages and is required in most states when a business has one or more employees. State law determines coverage, but injuries covered by workers’ comp typically include:

• Occupational injuries like lung disease caused by breathing in hazardous chemicals
• Traumatic injuries like a broken wrist after a fall
• Repetitive stress injuries like carpal tunnel from cutting hair

4. Equipment Breakdown Coverage

Equipment breakdown coverage is known to pay for losses caused by mechanical failure of nearly any equipment, including clippers; computers; and heating, ventilation, and air conditioning (HVAC) systems. It can be acquires as a standalone policy or endorsed onto a property policy. A good number of barbershop owners believe their commercial property insurance covers these events, but that policy only pays for damage caused by external sources.

Meanwhile, Equipment breakdown coverage pays for damage caused by internal sources like power surges and motor burnout. Barbershop owners may need equipment breakdown insurance for the machinery housed in buildings they own. That’s when they’re most likely responsible for repairs to boilers and air conditioning units.

5. Professional Liability Insurance

Professional liability insurance, also called errors and omissions (E&O) insurance, takes care of your legal fees if a client claims your negligence or mistake caused them financial harm. Whether the costs are your fault or not, professional liability insurance helps pay the lawyer’s bills, court fees, judgments, or settlements.

For instance, let’s say you accidentally dye your client’s hair the wrong color, and they claim they lost a modeling gig because of it. If that client sues, professional barbershop liability insurance covers your legal bills.

Companies That Offer the Best Insurance Policy for Barbershops

Barbershops can offer a wide range of services, and that makes getting the right insurance difficult. Barbershop owners need to look for carriers that can cover their operations for an affordable premium. Nonetheless, here are top carriers to consider;

1. The Hartford

The Hartford remains one of the best for barbershop insurance companies because of its strong financial rating and its ability to tailor coverage to your unique operations. In addition to bundling property and general liability coverage, The Hartford’s business owner’s policy (BOP) has five optional endorsements barbershop owners can use to increase their protection, including coverage for professional errors, data breaches, and loss income due to off-premises utility services.

2. Allstate

Allstate provides barbershop owners general liability and commercial property insurance in a BOP that includes coverage for employee dishonesty and stolen cash. Most carriers offer crime insurance as an optional coverage, so Allstate is ideal for barbershop owners who are concerned about employee theft

3. Hiscox

Barbers or Hairstylists who are running their businesses out of their homes can get affordable BOPs online through Hiscox. Note that this company is also one of the few large insurance carriers that offer an online application for barbershop insurance that is easy to use and returns quotes within seconds. The carrier’s BOP provides coverage limits of up to $4 million and starts at $41.67 per month. Additionally, Hiscox offers up to 5% off for home-based businesses

4. Beauty & Bodywork Insurance

This Insurance carrier is a low-cost option for a wide range of beauty professionals. For just $96 per year, hairstylists, aestheticians, cosmetologists, and nail technicians can get up to $3 million in general and professional liability coverage and $2,000 in property coverage. Students working on their clinical hours can get a policy for just $67 per year. 

5. CyberPolicy

CyberPolicy is ideal for barbers who want to shop their business to top-rated carriers like Chubb, biBERK, and Nationwide. Most business owners see multiple quotes when they submit an application through CyberPolicy. Once they get their quotes, barbershop owners can review their options on their own or get help from a CyberPolicy representative by email or phone. CyberPolicy representatives are compensated on service, not sales, so they’re incentivized to give impartial and helpful advice.

Conclusion

Barbershop insurance is essential for protecting your business, but the cost can be daunting—especially if you offer services insurance companies deem too risky to cover. Comparing offers, either by applying to multiple carriers or working with a broker, is the best way to ensure you’re getting the right coverage at a fair price. Work with a seasoned agent to find the right level of barbershop insurance coverage for your barbershop.