Beauty Salon Insurance Rhode Island Policy Information
Beauty Salon Insurance Rhode Island. Is your salon business protected from liability? Salons are not immune from the potential for liability claims against them.
Beauty shops cut, style, trim, color, and apply permanent wave or straightening solutions to hair. Other services may be offered, such as wig cleaning and styling, massage, nail care, tanning beds, cosmetic consulting, and electrolysis. Although salons traditionally catered to women, many salons now offer their services also to men and children. Services may be offered on a walk-in basis, by appointment only, or both.
Beauty shops are subject to state regulations to reduce the possible spread of disease. Each beautician, manicurist or other professional must also be licensed. Shops may employ beauticians and other cosmetic services professionals or may rent space to them as independent contractors who provide their own equipment. The status of the various professionals as an employee or an independent contractor must be determined since it may impact how coverages apply.
In 2009, a Florida beauty salon was sued when they caused third-degree burns to a teenager's head while trying to dye her hair. The teen racked up $85K in medical bills, and then sued the salon for pain and suffering and negligence.
The stylist had not followed the directions on the dye product, so the salon owner was found liable for the damages. If she had liability insurance, it would likely cover the costs. If she didn't, then she's out the money to pay for her mistake.
Beauty salon insurance Rhode Island protects your business from lawsuits with rates as low as $67/mo. Get a fast quote and your certificate of insurance now.
Having a faithful customer base and always following package directions is not enough in today's litigious society. Beauty salon insurance Rhode Island protects salon owners from potential financial ruin if an accident occurs or they are sued in a civil court of law.
While stylists and beauticians do their best to provide services that are safe for customers, the truth is things happen and accidents 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's a lot of room for things to go awry.
More than 80 percent of salons in the United States have fewer than five employees working. This makes them small and particularly vulnerable to financial loss, whether from a lawsuit, or from damage to equipment and other assets from storms, fire, or theft. This is where beauty salon insurance Rhode Island can help.
Salon Insurance Types
For most owners of small salons, the business is their primary livelihood - their bread and butter, whether they are just fresh out of beauty school or planning to open up more locations. Having the right salon insurance in place can protect your business and leave you with the peace of mind that a mishap won't destroy your livelihood. Some types of beauty shop insurance to consider:
- Salon liability insurance. This type of insurance for salon owners provides financial security if a customer is injured or the customer's property is damaged while on your premises. For instance, if a client falls in your bathroom, general liability insurance pays for her medical costs and any settlement or judgment that is ordered. It also pays the salon owner's legal expense. For all these reasons, it's important that Rhode Island salon owners purchase the maximum amount of beauty salon insurance Rhode Island they can afford.
- Commercial property insurance. Whether you own or rent the building that houses your RI salon, it is important to insure it. Property insurance covers loss to the building, while business personal property insurance insurance covers the building's contents, such as chairs, counters, tanning equipment, and other items.
- Plate glass coverage. For salons with storefronts that have a lot of glass, a separate policy or a rider for plate glass coverage may be necessary if the property/casual policy does not cover damage to it.
- Worker's compensation insurance for salon owners. RI workers compensation coverage is required for all employees but the owner and protects employees who become injured or ill on the job. It also guards the business against lawsuits.
Specific Issues for Salon Owners
There are additional considerations for beauty salon owners who rent space to manicurists, hair stylists, and other related professionals. A general liability policy may not cover the work that they do. Stylists may even face claims over small things, such as bad dye jobs or bad haircuts, or they may face cases like the one described above in which an injury causes a substantial amount of pain and incurs substantial medical bills.
Salon owners who rent space to others can require that their contract workers all carry professional liability insurance. This protects not only the professional but the salon owner as well.
Another special situation arises when a beauty salon sells beauty products. If there is a flaw in the manufacture of these products or an imbalance in a chemical, and this flaw or imbalance causes the customer harm, you can be held liable, at least in part. Faulty product suits often involve everyone from the manufacturer down to the end seller, so product liability insurance is an essential. This ensures that RI salon owners don't pay for the mistakes of products' manufacturers.
Rhode Island Nail Salon Insurance
Chemicals and sharp tools used in nail salons make them a breeding ground for lawsuits from injured customers. Nail salon insurance protects businesses from loss when they are sued for damages by a customer. Most nail salon owners need:
- Professional liability insurance. If a worker in a nail salon ideures a customer, that customer has a right to sue. An accidental cut can lead to a serious lawsuit, which makes professional liability coverage important.
- Workers compensation. Workers in nail salons often breathe in toxic chemicals daily, affecting their health. Workers compensation can help salon owners protect themselves in the event a claim is lodged against them.
Other Types of Specialty Insurance for Salons
Although not all salons need every type of insurance available, it is possible that your salon needs some of the following coverage types:
- Fire insurance. All salons should have coverage against common perils, including fire. Spas often use flammable materials, so this protection gives you a safety net in the event that a fire damages or destroys your salon.
- Drain/sewer backup insurance. Water damage to the floors and walls of a salon from drain/sewer backup can be expensive to repair. A policy or rider covering these perils is a good option for salon owners.
- Breakdown coverage for equipment. The equipment you use in your Rhode Island salon is expensive. Protect it with equipment breakdown coverage and you can bounce back quickly without financial loss when an important piece goes on the fritz.
- Inland marine insurance. This type of protection is ideal for salons who offer services on the go. For example, salons that cater to people in their homes or who show up for weddings and so forth. This protects you against loss or damage to equipment uses outside the business premises.
You may also need insurance for salon booth renters if you rent space in someone else's salon. Your rent gives you the space to provide your beauty services. Insurance for salon booth renters helps protect yourself as you can be held liable for professional mistakes, bodily injuries, and property damage - just like the salon owner.
RI Beauty Shop's Risks & Exposures
Premises liability exposure is moderate due to public access to the premises. Aisles must be adequate and free of hair clippings and debris, no frayed or worn spots on carpet, and no cracks or holes in flooring. The number of exits must be sufficient, and be well marked, with backup lighting in case of power failure
Tanning beds, massage, and electrolysis services can result in injury. Tanning services provide a special set of exposures that may need the services of specialty markets as customers may be burned by overexposure to lighting used in the beds. There is unknown loss potential from long-term exposure from the radiation and chances of cancer and related diseases. If professionals are independent contractors, any injuries they incur on premises are part of the premises liability exposure instead of workers compensation.
Parking lots and sidewalks need to be in good repair with snow and ice removed, and generally level and free of exposure to slips and falls. Courts may deem the security of visitors in parking areas as the responsibility of the owner or operator of the premises. Factors affecting the risks include exterior lighting, fencing, and any other security measures in place.
Professional liability exposure may be moderate depending on the services offered. The stylists' training, experience, and background are important considerations. Simple wash, cut and set operations have incidental exposures while salons that offer other types of services will have higher exposure. Because of the large number of customers served, a significant, although easily avoided risk, is the transmission of diseases and vermin such as lice.
The absence of simple hygienic practices like hand washing and disinfecting solutions for combs and brushes may indicate a morale hazard. Permanent wave solutions, hair straightening chemicals, and dyes can cause considerable hair and scalp damage. Hazards may increase in the absence of procedures to test for allergies and skin reactions. Full body mud treatments, pedicures, and manicures also increase the professional liability due to the potential for injury to a customer. Understanding the contractual relationship between the shop and the stylists is important as it has an impact on who is covered.
Product liability exposure is moderate if the beauty shop sells shampoo and other items to customers. The exposure increases if any products sold are non-standard, independently produced, or proprietary.
Workers compensation exposure is generally limited to minor cuts, scratches, and puncture wounds from scissors, burns from chemicals, and repetitive motion injuries. Leg and back injuries may result from standing long hours without resting. Working with chemicals can result in irritation to eyes, lungs, and skin. Employees must be fully informed as to the potential effects of any chemicals, including long-term occupational disease hazards so that they can take action as quickly as possible.
Shops with more than one chair may be considered to be multiple sole proprietorships, rather than one business with employees. The contractual relationship between the shop owner and any independent contractors helps determine the workers compensation exposure, although regulatory definitions of employee may supersede the contract terms.
Property exposure consists of a small office and the customer service area. Ignition sources include electrical equipment, heating, and air conditioning. If the beauty shop is in a converted dwelling, wiring should be up to code and adequate for the occupancy. Age and condition of the equipment is important as fires may result from poor wiring, overheating, and poor maintenance.
Poor housekeeping may be a serious fire hazard because hair trimmings are flammable. While most of the chemicals used in the personal applications are not flammable, some may contain alcohol. There should be adequate ventilation to prevent the buildup of vapors which can ignite. Ownership of personal property may need to be addressed. Professional equipment such as scissors and electric clippers is quite costly and is commonly owned by the particular employee or independent contractor.
Crime exposures are generally limited to theft of money by employees and others if large amounts of cash are on hand.
Inland marine exposures are from valuable papers and records for customers' and suppliers' information. If employees provide their own tools, there may be an employees' tools and equipment exposure. If professionals travel to the client's premises to perform services, there may be goods off premises or in transit. There may be a bailees exposure with wigs or other hairpieces, or from storage of customers' goods at all-day events offered by some high-end salons.
Automobile exposure is generally limited to hired and non-owned liability.
Rhode Island Economic Data, Regulations And Limits On Commercial Insurance
If you are considering starting a business, it's important that you choose the right location for your operation. Ensuring that the area offers the right market and demographics that will benefit from and be interest in the goods and/or products that your business intends on providing are vital for your success.
If you are thinking about starting a new company in Rhode Island or would like to expand the operations of an existing company into the state, it's crucial that you ensure the state offers a healthy climate that will allow your business to reap as much success as possible.
By assessing the employment rate of a state, as well as the key business sectors that are thriving there, you can determine if Rhode Island is a practical location for your company. Additionally, to ensure that you are in compliance with the law, it's imperative that you are aware of the commercial insurance coverage that business owners are required to carry in the state.
Below, we offer an overview of the economic trends and commercial insurance requirements in the Plantation State so you can determine if it will be a good location for your business.
Economic Trends For Business Owners In Rhode Island
As of December, 2019, the Bureau of Labor Statistics reported that the unemployment rate in the state of Rhode Island was 3.5%, which was on-par with the national average, which was also 3.5% at the same time.
Economists credit favorable taxes, the close proximity to regional markets, and the diverse workforce for the state's health economy.
In regard to locations within the state that offer the best opportunities in the Ocean State, urban areas are ideal. This includes:
The suburban regions that surround the state's metropolitan areas also offer favorable conditions for businesses.
Businesses of varying sizes and in a variety of industries are thriving in RI. At the time of writing, the sectors that are seeing the most activity in Rhode Island include:
- Financial services
- Health care
- Hospitality and tourism
- Professional services
Commercial Insurance Requirements In Rhode Island
The Rhode Island Division of Insurance Regulation regulates insurance in RI. Rhode Island mandates very few forms of insurance coverage by law. They enforce worker's compensation.
Rhode Island requires you to have worker's compensation insurance if you have four or more employees on a regular basis. This includes part-time employees, family members, minors, and immigrant employees. It is not required for independent contractors or domestic employees, though you should check to make sure any contractors you have are true contractors, and not employees.
Rhode Island also requires all business-owned vehicles to be covered by commercial auto insurance. Other types of business insurance that business owners should carry depend on the specific industry.
Additional Resources For Health & Beauty Insurance
Learn about small business health and beauty insurance coverages that help protect tattoo artists, salons, spas, estheticians, cosmetologists, barbers, hairdressers, nail salons and more from legal liability.
- Barber Hair Dresser
- Beauty Salon
- Day Spa
- Diet Nutrition Services
- Massage Therapy
- Medical Spa
- Nail Salon
- Permanent Cosmetics And Microblading
- Personal Trainer
- Tanning Salon
- Weight Loss Center
The health and beauty industries help people look good and feel great about their appearance and health. Some of the most popular are:
Cosmetologists - typically can help people with hair styling, cosmetics, and manicures and pedicures.
Estheticians - are trained to work with clients to treat skin care issues.
Hair Dressers & Barbers - offer a variety of services such as; hair cuts, styling, perms, hair dying and highlighting.
Health Club - Gyms, fitness centers, and health clubs focus on promoting healthy lifestyles and active living.
Massage Therapy, Reiki & amp; Acupuncture - can help relieve stress and improve your clients health. Work can be done in a salon, medical office, or home based. Also in your client's homes.
Permanent Makeup & Microblading - Offers coverage for permanent cosmetics, pigment removal and lightening, lasers/IPLs, and needling/MCA.
Salons - Similar to spas, salons are offer customers beauty treatments, services and products.
Spas - Have more exposures for the risks of faulty equipment, products, or unskilled employees that can injure customers.
Tattoo - Tattoo parlor and body-piercing coverage is designed to address the specific risks of artists and their studio.
Yoga & Pilates - forms of exercise designed to improve mind, body and spiritual wellness.
Minimum recommended small business insurance coverage: Business Personal Property, Business Income with Extra Expense, Employee Dishonesty, Valuable Papers and Records, General Liability, Professional Liability, Umbrella Liability, Hired and Non-owned Auto Liability & Workers Compensation.
Other commercial insurance policies to consider: Building, Earthquake, Flood, Leasehold Interest, Real Property Legal Liability, Accounts Receivables, Bailees Customers, Fine Arts, Cyber Liability, Employment-related Practices, Environmental Impairment, Liquor Liability, Business Automobile Liability and Physical Damage, Garagekeepers and Stop Gap Liability.
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Also find Rhode Island insurance agents & brokers, RI local small businesses by General Liability Class Code and learn about Rhode Island small business insurance requirements for general liability, business property, commercial auto & workers compensation including RI business insurance costs. Call us (401) 371-8771.