When making the decision to operate a beauty or tanning salon, it is important for potential owners to extensively research their options for securing salon insurance. Insurance is a necessity for salon owners to purchase, as it keeps the business protected financially in the event of a fire, accident, and customer or employee lawsuit. The specific types of insurance that a salon owner should obtain include property coverage, business liability, and professional liability. Additional types of insurance coverage such as workers compensation, business income coverage, and employee dishonesty coverage are beneficial for salon owners to secure as well.

When contacting a licensed agent for the purpose of buying salon insurance, proprietors who own both the business and the building where services are offered should be certain to select an insurance policy that includes sufficient property coverage. Property coverage is designed to provide financial security in regard to both the contents of the salon and to the building itself. By insuring personal contents of the business such as tanning beds, hair dryers, and beauty products, salon owners are able to replace any items that are damaged by fires, hurricanes, or other natural disasters. Property coverage for the location of the salon ensures financial protection against damages incurred to the composite materials of the building structure.

Business and professional liability are two other types of salon insurance that should be obtained by all beauty shop owners. Business liability insurance offers protection in the event of civil lawsuits stemming from claims of customer injury, false advertisement, property damage, and slander or libel. Professional liability insurance covers accident or negligence claims against the salon on the part of the customer. This type of insurance is particularly necessary for salons that offer tanning services through the use of ultraviolet beds, as there are higher risks associated with this process than that of other beauty procedures.

Workers compensation insurance is another option that salon owners may want to consider when purchasing coverage for their business. This type of salon insurance ensures that employees who have sustained work-related injuries or disabilities will be provided for financially, therefore preventing costly litigation procedures against the employer. Employee dishonesty coverage can protect salon owners from financial losses incurred as a result of a worker forging signatures, stealing money or product inventory, or committing other unethical business acts.

Salon insurance policies can also be extended to include business income coverage and money and securities coverage. Business income coverage aids the salon owner in maintaining employee wages and benefits and continuing to provide services for customers in the wake of property damage or loss. Money and securities coverage insures the salon owner against the potential for loss of cash, securities, and bank deposits.

Beauty and tanning salon owners may also want to consider securing insurance that protects against flood damage or wind damage, both of which can result in the need for substantial building and sign repair. The types of policies that salon owners decide to purchase when insuring a business can vary depending on factors such as geographical location.

Nasreen Haque