Beauty School Insurance Policy Information
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 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 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 beauty school insurance you'll need to protect your business from the risks you face.
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.
Below are some answers to commonly asked accounting insurance questions:
- How Much Does Beauty School Insurance Cost?
- Why Do Beauty Schools Need Insurance?
- What Type Of Insurance Do Beauty Schools Need?
How Much Does Accounting Insurance Cost?
The average price of a standard $1,000,000/$2,000,000 General Liability Insurance policy for small beauty schools ranges from $47 to $79 per month based on location, number of students, payroll, revenue, claims history and more.
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 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 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 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 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 beauty school insurance coverage you should consider for your education business.
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.
Commercial Insurance And Business Industry Classification
- SIC CODE: 7231 Beauty Schools
- NAICS CODE: 611511 Cosmetology and Barber Schools
- Suggested ISO General Liability Code(s): 47474
- Suggested Workers Compensation Code(s): 9586
Description for 7231: Beauty Schools
Division I: Services | Major Group 72: Personal Services | Industry Group 723: Beauty Shops
7231 Beauty Schools: Establishments primarily engaged in furnishing beauty or hairdressing services. This industry also includes combination beauty and barber shops, as well as hairdressing shops serving both male and female clientele. Beauty and cosmetology schools are included in this industry.
- Beauty and barber shops, combined
- Beauty culture schools
- Beauty shops or salons
- Cosmetology schools
- Cosmetology shops or salons
- Facial salons
- Manicure and pedicure salons
- Unisex hairdressers
Beauty School Insurance - The Bottom Line
To find out more about the exact types of 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 beauty schools.
Types Of Small Business Insurance - Requirements & Regulations
Perhaps you have the next great idea for a product or service that you know will appeal to your local area. If you've got a business, you've got risks. Unexpected events and lawsuits can wipe out a business quickly, wasting all the time and money you've invested.
Operating a business is challenging enough without having to worry about suffering a significant financial loss due to unforeseen and unplanned circumstances. Small business insurance can protect your company from some of the more common losses experienced by business owners, such as property damage, business interruption, theft, liability, and employee injury.
Purchasing the appropriate commercial insurance coverage can make the difference between going out of business after a loss or recovering with minimal business interruption and financial impairment to your company's operations.
Insurance is so important to proper business function that both federal governments and state governments require companies to carry certain types. Thus, being properly insured also helps you protect your company by protecting it from government fines and penalties.
Small Business Insurance Information
In the business world, there are many risks faced by company's every day. The best way that business owners can protect themselves from these perils is by carrying the right insurance coverage.
The The National Association of Insurance Commissioners (NAIC) is the U.S. standard-setting and regulatory support organization. Through the NAIC, state insurance regulators establish standards and best practices, conduct peer review, and coordinate their regulatory oversight.
Commercial insurance is particularly important for small business owners, as they stand to lose a lot more. Should a situation arise - a lawsuit, property damage, theft, etc. - small business owners could end up facing serious financial turmoil.
According to the SBA, having the right insurance plan in place can help you avoid major pitfalls. Your business insurance should offer coverage for all of your assets. It should also include liability and casual coverage.
Types Of Small Business Insurance
Choosing the right type of coverage is absolutely vital. You've got plenty of options. Some you'll need. Some you won't. You should know what's available. Once you look over your options you'll need to conduct a thorough risk assessment. As you evaluate each type of insurance, ask yourself:
- What type of business am I running?
- What are common risks associated with this industry?
- Does this type of insurance cover a situation that could feasibly arise during the normal course of doing business?
- Does my state require me to carry this type of insurance?
- Does my lender or do any of my investors require me to carry this type of policy?
A licensed insurance agent or broker in your state can help you determine what kinds of coverages are prudent for your business types. If you find one licensed to sell multiple policies from multiple companies (independent agents) that person can often help you get the best insurance rates, too. Following is some information on some of the most common small business insurance policies:
|Business Insurance Policy Type||What Is Covered?|
|General Liability Insurance||What is covered under commercial general liability insurance? It steps in to pay claims when you lose a lawsuit with an injured customer, employee, or vendor. The injury could be physical, or it could be a financial loss based on advertising practices.|
|Workers Compensation Insurance||What is covered under workers compensation insurance? This type of insurance protects a business and its owner(s) from claims by employees who suffer a work-related injury, illness or disease. Workers comp typically provides the injured employee with benefits to cover medical expenses, a portion of his/her lost wages, rehabilitation costs if applicable, and permanent partial or permanent total disability.|
|Product Liability Insurance||What is covered under product liability insurance? I pays an injured party's settlement or lawsuit claim arising from a defective product. These are usually caused by design defects, manufacturing defects, or a failure to provide adequate warning or instructions as to how to safely use the product.|
|Commercial Property Insurance||What is covered under business property insurance? General liability policies don't cover damages to your business property. That's what commercial property insurance is for. It protects all of the physical parts of your business: your building, your inventory, and your equipment, giving you the funds you need to replace them in the event of a disaster. If you work from home, you might consider a Home Based Business Insurance policy instead.|
|Business Owners Policy (BOP)||What is covered under a business owners policy (BOP)? This is a policy designed for small, low-risk businesses. It simplifies the basic insurance purchase process by combining general liability policies with business income and commercial property insurance.|
|Commercial Auto Insurance||What is covered under business auto insurance? This type of insurance covers automobiles being used for business purposes. This could include a fleet of business-only vehicles or a single company car. In some cases it might cover your car or your employee's car while they're being used for business. These policies have much higher limits, ensuring you can cover your costs if one of these vehicles gets into an accident.|
|Commercial Umbrella Policies||What is covered under commercial umbrella insurance? This type of policy is a sort of "gap" insurance. It covers your liability in the event that a court verdict or settlement exceeds your general liability policy limits.|
|Liquor Liability Insurance||What is covered under liquor liability insurance? It covers bodily injury or property damage caused by an intoxicated person who was served liquor by the policy holder.|
|Professional Liability (Errors & Omissions)||What is covered under professional liability insurance? This type of business insurance is also known as malpractice oe E&O. It covers the damages that can arise from major mistakes, especially in high-stakes professions where mistakes can be devastating.|
|Surety Bond||What is covered under surety bonds? Bonding is a contract where one party, the SURETY (who assures the obligee that the principal can perform the task), guarantees the performance of certain obligations of a second party, the PRINCIPAL (the contractor or business who will perform the contractual obligation), to a third party, the OBLIGEE (the project owner who is the recipient of an obligation).|
Who Needs General Liability Insurance? - Virtually every business. A single lawsuit or settlement could bankrupt your business five times over. You might also need this policy to win business. Many companies and government agencies won't do business with your company until you can produce proof that you've obtained one of these policies.
Business Insurance Required by Law
If you have any employees most states will require you to carry worker's compensation and unemployment insurance. Some states require you to insure yourself even if you are the only employee working in the business.
Your insurance agent can help you check applicable state laws so you can bring your business into compliance.
Other Types Of Small Business Insurance
There are dozens of other, more specialized forms of small business insurance capable of covering specific problems and risks. These forms of insurance include:
- Business Interruption Insurance
- Commercial Flood Insurance
- Contractor's Insurance
- Cyber Liability
- Data Breach
- Directors and Officers
- Employment Practices Liability
- Environmental or Pollution Liability
- Management Liability
- Sexual Misconduct Liability
Whether you need any or all of these policies will depend on the results of your risk assessment. For example, you probably don't need an environmental or pollution policy if you're running an IT company out of a leased office, but you would need data breach and cyber liability policies to fully protect your business.
Also learn about small business insurance requirements for general liability, business property, commercial auto & workers compensation including small business commercial insurance costs. Call us (855) 767-7828.
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
- Colleges, Universities & Professional Schools
- Driving Schools
- Educational Services
- Language 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.