Hawaii Beauty School Insurance Policy Information
Hawaii Beauty School Insurance. Individuals who aspire to become hair stylists, aestheticians, makeup designers, manicurists, and any other professional that is related to delivering beauty-related services often attend beauty school.
These schools offer the training and development that those who are interested in working in the beauty industries require. Since beauty-related services are always in demand, there's always a need for training professionals who are interested in working in the industry.
As such, owning and operating a beauty school can be a very lucrative endeavor. However, like any business owner, beauty school owners face a variety of risks. In order to protect your business - and yourself - from those risks, investing in the right type of Hawaii beauty school insurance is an absolute must.
Barber and beauty schools teach students how to care for hair, nails, and skin. Hair may be cut, dyed, curled, straightened, styled, or removed by electrolysis, threading, or waxing. Nail care includes manicures and pedicures.
Skin treatments may be limited to facials or include aromatherapy, massage or tanning. Some offer services for wigs. Barber training has traditionally been limited to cutting and styling of men's hair and beards while beautician training provides a fuller range of services.
After completing their studies, barbers and beauticians need to pass exams and be licensed in each state in which they are working. Barber and beautician schools are generally funded through tuition payments by students.
Why is commercial insurance so important for a HI beauty school owner and operator? What type of insurance coverage do you need to carry?
Read on to find out what you risks you need to protect yourself from and what type of Hawaii beauty school insurance you'll need to protect your business from the risks you face.
Hawaii beauty school insurance protects your education business from lawsuits with rates as low as $47/mo. Get a fast quote and your certificate of insurance now.
Why Do Beauty Schools Need Insurance?
As a beauty school owner and operator, you face numerous risks, some that are similar to the risks that all business owners face and some that are unique to your industry. Examples of the risks you face include third-party and employee injuries, property damage, lawsuits, loss of income, and stolen equipment.
Having the right type of Hawaii beauty school insurance coverage in place takes the financial burden off of your shoulders in the event that something unexpected happens.
For instance, if a client were to slip and fall while they were attending a class and filed a lawsuit against you, instead of having to pay for your own legal defense fees and any other expenses that you might be liable for, your insurance carrier would cover the related costs for you.
In other words, having the right type of insurance coverage can protect you from serious financial losses.
In addition to the financial protection that insurance provides, being properly covered ensures that you are compliant with local HI laws. In most locations, beauty school owners are legally required to carry certain types of coverage. If they fail to, they could end up facing stiff penalties and may even lose their business.
What Type Of Insurance Do Beauty Schools Need?
The specific type of Hawaii beauty school insurance you'll need to carry depends on a variety of factors; where your facility is located and the size of your operation, for example. With that said, however, there are certain coverages that most HI beauty schools will require. Examples include:
- Commercial Property - This type of insurance protects the physical structure of your beauty school, as well as the contents within it, from damages and losses that are related to acts of nature, theft, and vandalism. For instance, if someone were to break into your school and steal any of your supplies, this policy would help to pay for any necessary repairs and would reimburse you for the items that were stolen.
- Commercial General Liability - This policy offers coverage for third-party bodily injury and property damage claims. If a student slipped, fell, and suffered an injury while attending a class and filed a lawsuit against you for the damages, this insurance would help to cover the cost of your legal defense fees and any other related expenses.
- Workers' Compensation - If any of your employees – from your instructors to your administrative staff – were involved in a work-related accident that required medical care, workers' comp insurance would cover the cost of their medical bills and reimburse them for the wages that they might lose if they are unable to work while recovering.
- Professional Liability - Also known as errors and omissions (E&O) insurance, this policy covers the cost of any mistakes that a student may make while they are offering a service to a client. If a student were to injure a client's finger while giving a manicure and the client filed a lawsuit against your beauty school, this coverage would help to pay for any related expenses, including legal defense fees and any settlements.
The above-mentioned policies are just a few examples of the type of Hawaii beauty school insurance coverage you should consider for your education business.
HI Beauty School' Risks & Exposures
Premises liability exposures are high due to the number of students and customers on premises. All electrical items should be grounded and wires should not be frayed. Furnishings must be well maintained to prevent injury. Slips and falls can be prevented with good housekeeping, including sweeping up hair after each customer and promptly mopping up spilled water.
Floors should be maintained in good condition, with no frayed or worn spots on carpet and no cracks or holes in flooring, and prompt cleanup of spills. Sufficient exits must be provided and be well marked, with backup lighting systems in case of power failure.
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.
Proper sanitary measures must be taken to prevent diseases from spreading. Immunizations should be required for each student, along with an emergency medical contact. There should be written policies regarding when a student is too ill to attend class, and when the facility will contact medical emergency providers in the event of illness or an accident. Students must be monitored to prevent injuries to customers.
Personal and advertising injury exposures include copyright or patent infringement, discrimination, failure to prevent intimidation, humiliation, hazing or bullying by instructors or other students, false arrest or detention, invasion of privacy, slander, and libel from publishing or broadcasting activities, professor publications, unauthorized or intrusive searches, or wrongful expulsion. Written procedures should be in place.
Professional liability exposure comes from students providing services to the public at a reduced fee in order to allow them to practice and gain experience. The instructor/student ratio should be low enough to permit adequate supervision.
Workers compensation exposure is high due to repetitive motion injuries, the use of chemicals, trips, and falls, foreign objects in the eye, and leg and back injuries from standing and bending all day. Instructors can slip and chemicals used in nail polishes and removers and those needed to wave, straighten and color hair can be caustic, resulting in eye, throat, lung and skin irritation.
Employees must be fully informed as to the potential effects of the chemicals so they can take action as quickly as possible. Protective equipment may be required. In the school, the relationship between student and employee may become blurred.
There should be a course syllabus explaining the relationship to prevent students from claiming workers compensation.
Property exposures are moderate. Ignition sources include electrical equipment and machinery, plus air conditioning and heating systems. All wiring should be well maintained and up to code. Circuit breakers and fuses should not be able to be overridden. Extension cord usage should be limited.
The use of aerosols (hairsprays) or alcohol increases the potential for explosion, resulting in a fire. These items should be properly stored and controlled. Extinguishing equipment must be easily accessible. Housekeeping must be excellent, with hair trimmings promptly removed.
Business income exposure can be high if a specialized classroom building is shut down after a loss. A disaster plan should be in place identifying temporary facilities and suppliers that could be used in the event of a loss.
Crime exposures are from employee dishonesty and money and securities. Background checks should be performed on all employees handling money. If cash is received for tuition or services to customers, receipts should be provided.
Cash from transactions with customers must be periodically picked up, tallied, verified, and deposited in a drop safe while on premises. Bank deposits should be made on a timely basis to prevent the buildup of cash on premises.
All job duties, such as ordering, billing, and disbursement, should be separate and reconciled on a regular basis. Audits should be conducted at least annually.
Inland marine exposures include accounts receivable for payments from students, computers. and valuable papers and records for clients' and students' records. All data should be duplicated and kept off-site.
Commercial auto exposure is normally limited to hired and non-owned for employees running errands. If students run errands on behalf of the school, coverage would not apply. If there are owned vehicles, all drivers must have appropriate licenses and acceptable MVRs. All vehicles must be well maintained with records kept at a central location.
Hawaii Beauty School Insurance - The Bottom Line
To find out more about the exact types of Hawaii beauty school insurance policies you'll need, how much coverage your school needs - speak with an experienced insurance broker who understands the unique risks of HI beauty schools.
Hawaii Economic Data, Regulations And Limits On Commercial Insurance
Location is one of the most vital factors that prospective business owners need to take into consideration when they are thinking about establishing an operation. You can have the best possible products and offer the most exceptional services, but if the location doesn't offer a market that can benefit from those goods and services, your business will have difficulty thriving.
As such, if you are an entrepreneur who has set your sights on Hawaii for the headquarters of your business or a new division of an already existing corporation, it's a good idea to familiarize yourself with the state's economic data. It's also important to understand what type of commercial insurance you will need to invest in to protect yourself, your employees, your vendors, and the clients you serve.
Below, we provide a brief overview of important economic data and the commercial insurance requirements for business owners in the Aloha State.
Economic Trends For Business Owners In Hawaii
A state's unemployment rate is a good indicator of the overall economy of the region. It indicates that there are enough jobs available to support the economy, which is a direct reflection of the success of businesses in the state. As of 2019, the Bureau of Labor Statistics indicated that the unemployment rate in Hawaii was 2.6%, 0.8% lower than the national average of 3.4% from the same timeframe. This rate has also decreased throughout 2019, as it was 2.8% in July of 2019.
As with most states, the best locations to start a business in the state of Hawaii include urban areas and the suburban regions that surround them. The top cities for business owners in HI include:
- Pearl City
While several industries do well in Hawaii, certain sectors thrive. Tourism has long been the leading industry in the state, as people from around the globe flock to Hawaii each year.
Agriculture is also a booming industry here; the state is the second largest producer of sugar can in the U.S. Defense is also a key sector here, as all branches off the armed forces have bases located in the state. Another industry that also thrives here is manufacturing; specifically the manufacturing of cotton-based goods, such as clothing.
Commercial Insurance Requirements In Hawaii
The Hawaii Department of Commerce and Consumer Affairs regulates insurance in HI. Hawaii mandates very few forms of insurance coverage by law. They enforce worker's compensation.
Hawaii requires you to have worker's compensation insurance if you hire even one employee 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.
Hawaii 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 Education, Colleges, Universities & Schools Insurance
Learn about small business commercial insurance for educators that helps protecting your professional reputation and other legal liabilities arising from your educational services.
- Art School
- Beauty School
- Charter School
- Chiropractic Schools
- Colleges, Universities & Professional Schools
- Driving Schools
- Educational Services
- Language School
- Music Schools
- Private Schools
- Real Estate School
The exposures of one individual educational institution may be totally different from those of another. Because of this, comprehensive surveys of each facility are needed to accurately determine the proper insurance program needed by each.
While the exposures may be significantly different, they have the common component of educating a student and providing faculty that is competent and facilities that are safe for learning.
Many of these institutions have a number of buildings, extensive grounds, and expensive equipment. Comprehensive property and liability insurance is crucial, as is protection and coverage for tuition income, athletic events, teachers’ liability and many other exposures.
Educators' Legal Liability (ELL) coverage provided by insurers may have significant differences. It is important to compare what is available to meet the exposures and financial needs of a given educational institution or school district. Different ELL forms may even have substantially different insuring agreements. There are three main types of insuring agremeements in ELL policies:
Insuring Agreement A: The language in this agreement refers to coverage being provided contingent on receiving the policy premium. It states that coverage is subject to all relevant policy provisions. The carrier also states that the policy issuance is a result of completely relying on the accuracy of the information provided by the applicant/insured. This agreement refers to a Self Insured Retention .
Insuring Agreement B: This company's agreement is worded similarly to the language found in most standard commercial policies. It states that the company will pay on behalf of an insured that faces an allegation of performing a wrongful act. It also states that it will not respond to acts that occur before either the policy's effective date or the applicable retroactive date.
Insuring Agreement C: The language in this carrier's agreement is more specific. It makes reference to paying on behalf of an insured due to liability involving eligible, education operations acts. It also contains wording that reflects its claims-made basis of coverage.
Minimum recommended small business insurance coverage: Building, Business Personal Property, Business Income and Extra Expense, Employee Dishonesty, Money and Securities, Accounts Receivable, Commercial Articles Floater, Computers, Valuable Papers and Records, General Liability, Directors and Officers, Employee Benefits, Professional, Umbrella, Business Auto Liability and Physical Damage, Hired and Nonownd Auto & Workers Compensation.
Other commercial insurance policies to consider: Earthquake, Equipment Breakdown, Flood, Spoilage, Computer Fraud, Extortion, Animal Floater, Contractors' Equipment, Fine Arts, Musical Instruments, Theatrical Floater, Cyber Liability, Employment-related Practices, Stop Gap Liability and Active Shooter.
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