Do you need insurance as a self employed hairdresser? If YES, here is an estimate of how much it cost to buy insurance policy for self employed hairdressers.
Maintaining a loyal customer base and always following package directions is not enough in today’s litigious society. As a self employed hairdresser, insurance protects you from potential financial ruin if an accident occurs or if you are sued in a civil court of law.
While hairdressers always do their best to provide services that are safe for customers, the truth is that accidents do occur. The more than 86,000 hair salons in the United States and 4,000 barber shops produce revenue of more than $20 billion per year – which means there is a lot of room for things to go awry.
Obtaining the right coverage for your business is crucial for its success. Unfortunately, insurance applications can be long and complicated, and you usually have to fill out a separate application for every carrier. You can simplify the process by taking time to prepare. Insurance applications can be very detailed, and while you may know some of the information you need, chances are you are going to have to look some of it up.
Gathering that information before you apply helps the insurance agent, broker, or underwriter know how to best protect your business against exposures common in the salon industry. Insurance for self-employed hairdressers is industry-specific, which means there are risk exposures and insurance needs that are unique to your business.
An agent with experience in writing hairdresser insurance is more likely to accurately assess risks common to the industry, such as client injuries from hair products. Their accurate assessment helps you get the right coverage at the best price.
Have it in mind that insurers use the information on your application to determine if they will offer coverage, which policies you need, and how much they will cost. This makes providing complete and accurate information essential to getting the appropriate coverage for your business. Leaving out information or making mistakes can cause you to be under-insured or your claims to be rejected.
For most owners of small salons, the business is their primary livelihood – their bread and butter. Having the right insurance in place can protect your business and leave you with the peace of mind that a mishap won’t destroy your livelihood.
How Much Does Insurance Cost for Hair Dressers?
Hair dressers typically need liability insurance to ensure safety of customers and for the building and business. The cost of insurance for hair dressers varies widely according to a number of factors. It is best to shop around and get quotes from a variety of providers to see what fits into your overall business budget. Self employed hair dressers are advised to plan to spend at least a few hundred dollars a year on insurance for their business.
For example, commercial liability insurance for a childcare center, which might be similar in size to a salon, costs between $350 and $700 a year or more, while commercial liability insurance for a studio photography business costs between $1,000 and $1,500.
Dozens of factors affect how much your insurance policy costs as a hair dresser. Owners who only get a BOP pay around $420 to $900 annually. However, BOPs don’t cover all the risks salons face, so many owners may opt for additional policies. This can raise their total salon insurance costs to $800 to $2,200 per year.
While the policies and coverage amounts have a major impact on insurance costs, insurers consider a number of factors when setting premiums. Many of these factors are characteristics of your business, but policy options play a factor too. A few of the factors that go into hairdresser insurance costs include:
- Operations: How you run your business has a major impact on your costs.
- Revenue: Salons with more revenue often have higher premiums for hair dresser liability insurance because courts consider income when awarding judgments, which means these salons potentially, cost more for insurers to cover.
- Employees: More staff increases your likelihood of filing workers’ comp, general liability, and commercial property claims.
- Deductibles: Opting for a higher deductible typically lowers your premium because it means you are taking on greater financial responsibility in the event of a claim.
- Coverage amount: You can increase limits on most policies, but that increases your overall salon insurance costs.
- Location: Certain locations may face higher risks for crime, extreme weather, and flooding, and this can impact your commercial property premium.
Insurers may exclude operations that make your business too risky for them to insure. As a hairdresser, insurers often exclude practices that are either untested or invasive. This doesn’t mean you can’t get coverage for these operations, but you may have to pay for an endorsement to get the coverage you need.
Although cost is always an important part of selecting your hair dresser insurance, remember that getting the bare minimum in coverage can save money in the short term, but you may be under-insured if you have to file a claim.