Nail Salon Insurance Policy Information
Nail Salon Insurance. As the owner of a nail salon, you love what you do. You stay on top of the latest trends in nail care and offer a variety of polish colors and cutting-edge techniques. You may also offer services that extend beyond nails, such as waxing and massages. But, your job isn't only to make sure that you customers look and feel their best; it's also your job to make sure that they receive the very best care.
There are certain risks that are associated with running a nail salon. You work with harsh chemicals and different types of equipment and machinery. On top of that, you are likely open for extended periods of time in order to meet the needs of your clients. With the right nail salon insurance coverage, you can protect yourself from the risks that are associated with owning a nail salon, from slips and falls to lawsuits - and a whole lot more.
Nail salon insurance protects your shop from legal liability with rates as low as $37/mo. Get a fast quote and protect your business now.
Below are some answers to commonly asked nail salon insurance questions:
- What Is Nail Salon Insurance?
- How Much Does Nail Salon Insurance Cost?
- Why Do Nail Salons Need Insurance?
- What Type Of Insurance Do Nail Salons Need?
- What Are Nail Salons Risks & Exposures?
- What Does Nail Salon Insurance Cover & Pay For?
What Is Nail Salon Insurance?
Nail salon insurance is a type of insurance that protects nail salons and their employees from financial loss due to accidents, injuries, and other liabilities that may occur in the course of doing business.
This type of insurance typically includes coverage for property damage, liability, and medical expenses. It may also include coverage for loss of income, business interruption, and other types of damage that may occur as a result of a covered event.
Some policies may also include specialized coverage for things like theft, vandalism, and other types of damage to the salon or its equipment.
How Much Does Nail Salon Insurance Cost?
The average price of a standard $1,000,000/$2,000,000 General Liability Insurance policy for small nail salon businesses ranges from $37 to $49 per month based on location, size, payroll, sales and experience.
Why Is Business Insurance Important For Nail Salon Owners?
Nail salons need insurance for several reasons. Firstly, insurance protects the salon from any unforeseen circumstances that may occur on the premises, such as accidents, injuries, or damages. For example, if a customer slips and falls in the salon and sustains an injury, the salon could be held liable for their medical expenses. Insurance can cover these costs and protect the salon from financial hardship.
Secondly, insurance can protect the salon from any legal action taken against it. For example, if a customer claims that their nail polish caused an allergic reaction, the salon could be sued for damages. Insurance can cover the cost of legal fees and any settlements that may be required.
Lastly, insurance can protect the salon's reputation by ensuring that any negative incidents are properly dealt with and resolved. This can help maintain the salon's reputation and attract more customers in the long run.
In summary, nail salons need insurance to protect themselves from accidents, injuries, damages, legal action, and to maintain their reputation. Without insurance, a nail salon could face significant financial and reputational risks that could ultimately lead to its closure.
What Type Of Insurance Do Nail Salons Need?
There are several types of nail salon insurance policies that nail salon owners should carry in order to properly protect themselves. Some of the most important types of coverage include:
- Commercial General Liability: This covers third-party accidents, injuries, property damage, and legal disputes. For instance, if a client slips on a puddle of water while stepping out of the pedicure tub and suffers an injury, commercial general liability insurance will cover his or her medical expenses. It can also protect you if the client who slips and falls leaves your salon on his or her own, but later decides to sue you for the injury.
- Professional Liability: Also known as errors and omissions insurance, this type of policy will cover lawsuits that may arise as a result of illness, injuries, or infections that your clients may sustain as a result of your services. For instance, if a client develops a staph infection and sues you, professional liability insurance will help to cover medical care and legal fees if you are found liable.
- Commercial Property Insurance: If your property is damaged in a fire, it's vandalized, or someone robs it, commercial property insurance will protect you from the losses. This type of insurance covers the physical structure of your nail salon, as well as the contents inside. For instance, if someone breaks into your salon and damages or steals your equipment, commercial property insurance will help to cover the losses.
- Workers Compensation: If you employ a staff, you should also consider carrying workers comp. Should a nail technician sustain a work-related injury or illness, workers compensation will cover the cost of medical care & lost wages.
What Are Nail Salons Risks & Exposures
Premises liability exposure is moderate due to public access to the premises. Aisles must be adequate and free of nail 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
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 techs' training, experience, and background are important considerations. Simple manicure and paint 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 files and clippers may indicate a morale hazard. Hazards may increase in the absence of procedures to test for allergies and skin reactions. 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 technicians is important as it has an impact on who is covered.
Product liability exposure is moderate if the nail salon sells nail polish 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 clippers and files, burns from chemicals, and repetitive motion injuries. 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.
Salona with more than one chair may be considered to be multiple sole proprietorships, rather than one business with employees. The contractual relationship between the salon 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 nail salon is in a converted dwelling, ventilation and 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.
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 files and 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.
What Does Nail Salon Insurance Cover & Pay For?
Nail salons can be sued for various reasons, including:
Injury or illness from nail treatments: If a customer suffers an injury or illness as a result of a nail treatment, such as an allergic reaction or infection, they may sue the nail salon for damages. In this case, liability insurance can help cover the costs of legal defense and any damages awarded to the plaintiff.
Slip and fall accidents: Customers or employees may slip and fall on a wet or slippery floor, leading to injuries that may result in a lawsuit. General liability insurance can help cover the costs of legal defense and any damages awarded to the injured party.
Damage to property: If a nail salon causes damage to a customer's property, such as clothing or jewelry, the customer may sue for damages. In this case, property damage insurance can help cover the costs of legal defense and any damages awarded to the plaintiff.
Employment lawsuits: Nail salons may face lawsuits from employees over issues such as discrimination, harassment, or wrongful termination. Employment practices liability insurance can help cover the costs of legal defense and any damages awarded to the plaintiff.
Breach of contract: If a nail salon fails to fulfill a contract with a customer or vendor, they may be sued for breach of contract. In this case, commercial general liability insurance can help cover the costs of legal defense and any damages awarded to the plaintiff.
Insurance can protect nail salons from these lawsuits by providing financial assistance for legal fees, settlements, and damages. It's essential for nail salon owners to understand the specific risks they face and obtain appropriate insurance coverage to protect their business.
Commercial Insurance And Business Industry Classification
- SIC CODE: 7231 Beauty Shops
- NAICS CODE: 812112 Beauty Salons
- Suggested Workers Compensation Code(s): 9586 Beauty Shop, Barber Shop, or Hair Styling Salon
Description for 7231: Beauty Shops
Division I: Services | Major Group 72: Personal Services | Industry Group 723: Beauty Shops
7231 Beauty Shops: 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
Nail Salons - The Bottom Line
To find out exactly what type of nail salon insurance policies you should carry, how much coverage you should have for each policy, and how much your insurance will cost, speak to a reputable business insurance broker that has experience covering nail salons.
With the right insurance, you can protect yourself and your clients, and keep your nail salon in good standing.
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 industry is a highly regulated sector, with strict rules and guidelines in place to ensure the safety and effectiveness of the products and services being provided. In addition to meeting these regulatory requirements, businesses in this industry also face a number of other risks and potential liabilities. For example, customers may suffer adverse reactions to products, or employees may suffer injuries while providing services. In these cases, the business could be held liable for any resulting damages or losses.
Business insurance can help protect a health and beauty business from these types of risks by providing financial coverage in the event of a claim or lawsuit. For example, a commercial insurance policy may provide coverage for medical expenses or damages that result from a product liability claim. It may also cover legal fees and other costs associated with defending the business against a claim.
In addition to protecting against financial losses, insurance can also help protect the reputation of a health and beauty business. If a business is sued or faces a costly claim, it can damage the business's reputation and negatively impact its bottom line. By having insurance in place, a business can show its customers and clients that it is prepared for any potential risks and is committed to protecting their safety and well-being.
Overall, commercial insurance is an important consideration for any business, but it is especially important in the health and beauty industry due to the unique risks and liabilities that businesses in this sector face. By having the right insurance coverage in place, businesses can protect themselves, their customers, and their employees, and ensure that they are able to operate with confidence and security.
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.