Your clients come to you because you help them look and feel their best. They trust you and you earn that trust every time they come back with friendly service and expertise in your craft. But running any business comes with its own unique risks and the successful ones are businesses that protect themselves against those risks. So whether you’re a sole practitioner working out of your home or renting out space in someone else’s shop, or you run a multi-service beauty salon with several employees, beauty salon insurance is an affordable way to protect your business and give you peace of mind.
Who is Beauty Salon Insurance For?
If your Beauty Salon offers; hair services, waxing, threading, tweezing, facials, as well as:
- Manicures / pedicures
- Eyelash / eyebrow tinting
- Body Treatments
- Makeup services
or any other personal care services, beauty salon insurance can help protect you from the risks that come with providing services that your clients care intimately about and that could potentially cause them harm.
We cover some of the risks that are common in the beauty industry in this post and how you can help keep your beauty salon serving your loyal clients for many years to come.
No matter where in Canada your beauty salon calls home, your local municipal and/or provincial government will have its own policies regarding beauty salons. The City of Toronto provides useful guidance for beauty salons and other services including:
- Guidelines for All Personal Service Settings
- Body Rub Parlours & Holistic Centres
- Checklist for Hair Stylists Salons & Barber Shops
- Checklist for Hair Stylists Salons & Barber Shops in Long-Term Care & Retirement Homes
- Checklist for Nails & Aesthetic Services
- Checklist for Tattooing & Body Piercing
Protecting your Beauty Salon – The Products you Use and Sell Could Land You in Hot Water
Whether they’re your own or they come from a known supplier, the products you use and sell in your beauty salon carry with them a certain amount of liability. According to the Government of Canada:
“Under the Food and Drugs Act, a cosmetic includes ‘any substance or mixture of substances, manufactured, sold or represented for use in cleansing, improving or altering the complexion, skin, hair or teeth and includes deodorants and perfumes.’ This includes cosmetics used by professional esthetic services, bulk institutional products (such as hand soap in school restrooms), as well as “handmade” cosmetics sold at craft sales or home-based businesses.”
This means that the beauty supplies you use and sell:
Additionally, cosmetics are subject to the requirements of the Consumer Packaging and Labelling Act and Regulations and any chemicals found in cosmetics may be subject to the Canadian Environmental Protection Act.”i
So if a customer has a bad reaction to a product used or sold in your salon, you may be legally and financially liable.
Protect your business beauty salon from lawsuits due to allergic reactions, burns and other injuries, make sure to have Product Liability Coverage included in your beauty salon insurance plan.
Other Risks Your Salon Faces and How Beauty Salon Insurance Can Protect You from Them
Risks that are common to the beauty industry include:
- Client injuries at your beauty salon from falls or faulty equipment
- Client injuries or complaints based on services provided at your beauty salon
- Clients skin or body reacts adversely to products applied and/or service performed
- Fires, sewage backups and vandalism
- Employee illness or injury
Beauty salon insurance policy can help protect you from those risks by providing the coverages you need in the amount you need them in. The following coverages are recommended for beauty business and are customizable to suit the size and scope of your beauty salon services:
Commercial General Liability Insurance protects your beauty salon from lawsuits based on slip-and-fall accidents, false advertising claims, libel/slander suits and more.
Professional Liability Insurance is the insurance policy that covers injuries and other legal claims based on the services provided in your beauty salon.
Equipment Breakdown Insurance can cover your costs of equipment failures including repair costs and other costs related to equipment malfunctioning sue to specific perils like electrical arching, power surges etc.
Property Insurance to protect your beauty salon and the contents inside it in case of fires, floods, sewage backups, and other perils. If you run your beauty salon from your home, you should check with your home insurer if your business activities and business supplies are covered by your home insurance plan. Otherwise, you will need this insurance coverage as well.
Business Interruption Coverage can help you pay your operating costs after a peril covered by your property insurance.
Crime Insurance which protects your beauty salon from employee theft or fraud.
Employer Liability Insurance because depending on where in Canada your beauty salon is located and what services you provide, you may be exempt from mandatory worker’s compensation insurance. If you are, your beauty salon is unprotected and you could be sued if an employee is injured or gets sick on the job.
Get ALIGNED with the Right Beauty Salon Insurance for Your Business
We know that as a beauty salon your big or small business tries to save money where it can. Our brokers are not just commercial insurance specialists, we’re advocates who work on your behalf to get you exactly the insurance coverage you need to protect your beauty salon at rates you can afford. Contact an advocate today to discuss your beauty salon insurance needs or get started now by getting a free quote online.
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