Opening a salon can be a wise business decision and produce lucrative business for beauticians looking to secure a decent income. Despite economic gains and losses, personal grooming remains a necessity and a priority for most. There will never be a shortage of hair to be cut, skin to be tanned, and nails to be painted. However, as large as the profits can swell in these salons, they can quickly be deflated if the salon owner doesn’t have proper insurance coverage. Here are a few things to check for when purchasing or updating salon insurance.

Every business needs property insurance. This is similar to the home insurance that homeowners across America pay for every year. It basically covers any damage a salon sustains due to natural disasters, fire and other structure altering events. Be careful though, not all property insurance is the same and it should be extended to cover mechanical and equipment breakdowns, stolen property and even flood damage in some areas.

Another important thing to check for when purchasing salon insurance is general liability coverage. Sometimes a salon owner can find a company to group together the general liability and property insurance to keep payments easier and to provide a small discount to company owner. General liability insurance will provide for property damage and injuries received in your salon. If a customer sues a salon because she falls on a wet floor, general liability should cover the incident and keep the owner from forfeiting profits to pay for legal responsibility. When purchasing this insurance, check for any exclusions or holes in the coverage though. In some cases, a lawyer may be hired to review the insurance contract for gaps in coverage that could be costly later on.

Professional liability is just as important as basic business insurance. Professional liability insurance covers damages that general liability will not. These are damages, injuries and loss of property pertaining directly to the salon industry. In other words, if a customer receives an infection from pedicure tools that have not been properly sanitized, professional liability will cover any medical bills and lawsuits that arise from such an incident. When purchasing this type of insurance, look especially at deductibles and coverage limits. The price may be much better than competing companies, but the resulting coverage may be less than appropriate.

Lastly, no salon owner should open the doors for business before protecting his or her employees. Employee claims can put a salon out of business quickly if proper coverage is not in place. This includes protection for harassment, claims of unlawful discharge, and of course, the dreaded worker’s compensation. Many salons can find coverage for employee claims from one of the same companies that provides their professional and general liabilities.

Remember, it is better to be safe than sorry and protecting not only the salon, but also the clients with proper provision can prevent financial disaster in the future. There are many competing insurance companies that are willing to give quotes over the phone and online. Check the insurance company’s credentials, reputation and client list before committing, and most importantly, never skimp on coverage.

Nasreen Haque

Article Source:http://www.articlesbase.com/insurance-articles/what-to-look-for-when-shopping-for-salon-insurance-986553.html

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