Why you need an insurance for your hair business?

Starting a hair business is fun, you can make a lot of people very happy. But what if it goes wrong? A business insurance protects you from the unexpected costs of running a hair extensions or wigs business. Accidents, and lawsuits could run you out of the hair business if you’re not protected with the right insurance.

To continue to service your clients, make sure you invest some time in finding the right insurance for your hair business.

There are several kind of risks and for every risk you should find the best solution to mitigate or avoid this business risk.

What is the risk you run as owner of a hair business

Before you start to search the internet for a business insurance company, you better do some preparations. I know a lot of girls who started their own hair business and only cared about the hair they wanted to sell. You also need to protect your brand. And your business with the right insurance and support to stay in business.

Plan some time to think about how you are going to run your business and what the risk might be that comes with the hair business. When you sell online from home, the risk is different from the hair salon you want to open or the mobile hair business you plan to start.

No need to cover all the risks you run doing your hair business, there might be some events that will not bring your hair store to an end. Put some money on your savings account to have some cash when events with limited impact happen. When the event could endanger your business, consider one or more of the following actions to reduce the financial impact and stress:

General liability insurance

A general or business liability insurance protects you and your hair business from claims involving injuries and property damage. This general insurance is a must have for almost every business. This will also cover medical expenses and attorney fees resulting from bodily injuries and property damage your hair brand might be held legally responsible for. When you rent the space for your hair store or salon, it will also cover the damage to the property of your landlord. Of course, only in case you are held liable for this damage.

Product liability insurance

A product liability insurance, protects against any financial loss as a result of a defective product that causes injury or harm. This is relevant when you manufacture your own products, provide wholesale services or distribute the hair products.

Of course, the first step you take when you create your own hair care products for example, is to ensure high-quality. Still your hair care products might cause an unexpected reaction. Or when you distribute hair care products, what is your position when things go wrong? Even when your client uses a product incorrectly, your business could still be liable for any damage that results.

When you sell products you should have product liability coverage. Or a contract that allocates the risk to your wholesale supplier. You should also make sure to give clear instructions for the use of your hair care or beauty products.

Professional liability insurance

A professional liability or errors and omissions insurance protects your hair business against the costs of client lawsuits over unsatisfactory work. Think about a claim for malpractice, errors, or negligence. You might be the most experienced and thorough professional cosmetologist on this planet, you can make mistakes. It feels bad already to face an unhappy client, but when it cost you money it is even more painful.

A professional liability insurance policy will cover legal defense costs up to your policy limit. This will help you to reduce the stress and to find a solution to avoid similar mistakes in the future.

What are the type of events you should think about?

• Work mistakes and oversights;
• Missed deadlines;
• Undelivered services;
• Claims of negligence and
• Breach of contract

For the next pandemic you can protect yourself from a missed deadline for a ghost wig project, because you were to ill to work.

Commercial property insurance

This coverage is for hair business with a significant amount of property and physical assets. It protects your hair business against loss and damage of company property, due to a wide variety of events such as:

• • Fire;
  • Smoke;
  • Wind and hail storms;
  • Civil disobedience and

Vandalism.

The impact from earthquakes and floods are not included, unless added to the policy.

The coverage is not only for the premises but for example also for your outdoor sign with your logo!

Your commercial property policy covers not only the building, everything in it and outside of it, including:

• • Computers;
  • Furniture and equipment;
  • Fence and landscaping;
  • Important documents;
  • Exterior signs:
  • Inventory and
  • Others’ property

Home-based business insurance

When you start your online business from home this policy can offer protection of business equipment and liability coverage for third-party injuries.

Your current home insurance policy covers only limited amount for business property. For example, if you’re selling hair extensions and wigs in a home-based business and a fire destroys your inventory, you may not have enough coverage under your home insurance policy.

Business owner’s policy

A business owner’s policy is a package that combines the typical coverage options for a business into one bundle. They simplify the insurance buying process and can save you money.

How to buy the insurance for your hair business

When you have a good understanding about the coverage you need for your hair business. You can search for a commercial insurance agent. These agents can help you find policies that match the needs of your hair extensions and wigs business. Keep in mind these agents receive commissions from insurance companies when they sell policies. So ask around first to find a licensed agent that’s interested in your needs as much as her or his own.

Keep your coverage in line with the hair business growth

Finally re-assess your risk position every year. As your hair business grows, so do your liabilities. If you have purchased or replaced equipment or expanded operations, contact your insurance agent to discuss changes in your business and how they affect your coverage.

Let me know in the comments below if you plan to insure your hair business or prefer to have enough on your savings account?