Wig Store Insurance Policy Information
Wig Store Insurance. Wig stores sell wigs, toupees, hair extensions, hairpieces, and hair care accessories. Their customers range from theater performers to older adults with thinning hair to those recovering from an illnesses related hair loss.
Hair goods stores specialize in the sale of wigs, wiglets, hair pieces, and toupees. They may sell bath supplies, beauty aids, cosmetics, costume jewelry, fragrances, and related items. The store may be independent or part of a regional or national chain that sells items online as well as in stores.
Some offer consulting services to customers to help them select the proper cosmetics and colorings for skin types. Others may be part of a beauty salon that provides hair care, manicures and pedicures, massage, electrolysis, tanning booths or beds, and other personal services. Some may offer delivery services.
As an entrepreneur operating a wig boutique, you face some risks. These include employee or customer injuries, crimes like theft or shoplifting, or basic business risks such as property damage. wig store insurance is the best way to protect your shop against these risks.
Wig store insurance protects your boutique from lawsuits with rates as low as $27/mo. Get a fast quote and your certificate of insurance now.
Below are some answers to commonly asked wig shop insurance questions:
- What Is Wig Store Insurance?
- How Much Does Wig Store Insurance Cost?
- Why Do Wig Stores Need Insurance?
- What Types Of Insurance Wig Stores Need?
- What Does Wig Store Insurance Cover & Pay For?
What Is Wig Store Insurance?
Wig store insurance is a type of insurance specifically designed for businesses that sell wigs and hairpieces. It covers a range of potential risks and liabilities associated with operating a wig store, including loss or damage to inventory, liability for customer injuries, theft, and damage to the store's physical property.
The coverage may include protection against theft of wigs or hairpieces, damage to the store's interior or exterior, and loss of business income if the store is temporarily closed due to a covered event. The insurance is designed to provide financial protection for wig store owners and help ensure the continuation of their business operations.
How Much Does Wig Store Insurance Cost?
The average price of a standard $1,000,000/$2,000,000 General Liability Insurance policy for small wig businesses ranges from $27 to $49 per month based on location, size, payroll, sales and experience.
Why Do Wig Stores Need Insurance?
Here are the reasons why wig stores need insurance:
- Protection against theft: Wig stores often store expensive and valuable merchandise, which can be at risk of theft. Insurance can protect against losses in case of theft or break-in.
- Liability coverage: Wig stores can face potential lawsuits from customers who suffer from an injury or have a bad experience while on the premises. Insurance can provide liability coverage in case of a lawsuit.
- Coverage for damage to the store: Natural disasters or accidental damage can occur to the store, causing extensive damage. Insurance can provide coverage for repairs or replacement of the store's physical property.
- Loss of income: If a wig store is forced to close temporarily due to damage or other unforeseen events, insurance can help to cover the loss of income.
- Product liability: In the event that a wig product causes harm to a customer, insurance can provide coverage for product liability claims.
In conclusion, wig stores need insurance to protect themselves against various risks and financial losses that can result from running a business.
What Types Of Insurance Wig Stores Need?
To be safe, a wig store should be covered by the following wig store insurance insurance policies. Each of these insurance policies covers a different type of risk, depending on different circumstances of your shop:
General Liability - This is the first wig store insurance policy to purchase. It covers personal injury, property damage, products liability, and completed operations. While it may be a rare instance, if one of your clients trips over a wig stand and hurts herself, the general liability policy would cover the medical costs. Likewise, if you make a custom hairpiece for a client that later causes them hair loss or irritation, they can sue you.
If s customer sues you, the policy will pay legal costs on your behalf for the claims made against you. Also, the general liability policy covers products liability for any loss or damage caused by the products you sell if you select that option on your policy.
Business Owners Property (BOP) - To obtain multiple insurance coverages in a single policy, purchase a business owner's policy. This includes your choice of coverages in a package, including business income protection, electronic data, property and contents, general liability, equipment breakdown, and more. In other words, a BOP policy bundles major coverages that are necessary to protect you from the risks while operating your wig store.
Workers' Compensation - The law in most states demands that all non-owner employees should be covered by workers comp. The workers' comp policy is crucial as it covers all work-related illness or injuries. Your wig store poses risks to your employees, such as back injuries from loading heavy boxes, repetitive motion injuries and cutting their hands when handling box cutters. These injuries are covered by worker's compensation insurance including all medical and recovery costs.
Business Property - Unexpected events like wind, fire, and extreme weather can cause significant damage to your business contents and property. With a wig shop, you are at higher risk for fire due to flammable hair pieces and how quickly they can be destroyed in a fire. A wig store insurance property policy protects your business assets from this kind of losses.
Commercial Auto - If you use a vehicle for running your business, such as picking up new merchandise for the store, delivering custom-ordered wigs, or running to the office supplies store or bank, it's wise to be covered by a business auto insurance. It is a commercial insurance policy for your vehicle when it is used for business purposes. If you get an accident while making a delivery to a customer, the damage to yourself, your car, and the others involved will be covered
Umbrella - The wig store insurance policies for your wig store have coverage limits. The commercial umbrella liability insurance is used to increase your liability limits for all your risks under one policy to protect your wig business for claims exceeding your primary policy limits.
Cyber Liability - A cyber liability insurance policy is essential if your wig store also operates as an e-commerce store that sells hairpieces online. A cyber liability policy is different from crime insurance as it only covers cyber crimes like theft of financial or personal information through web transactions. Cyber liability insurance policy also covers crimes against you, such as paying for merchandise with stolen cards, hacked PayPal accounts or other types of fraudulent activity.
Commercial Crime - Although you have taken proper security measures against shoplifting or theft crimes, it does not mean it will never occur in your wig shop. Crimes such as theft from employees, shoplifting of wigs, and vandalism of merchandise can happen right under your nose.
To protect your boutique from losses resulting from these crimes, purchase a crime insurance policy for your store. Whether you sell toupees, wigs, or hair extensions, you are open to many risks. While you cannot prevent certain events, you can protect your business from a financial struggle with wig store insurance.
Hair Good Store's Risks & Exposures
Premises liability exposure is high due to the number of visitors to the store. To prevent slips and falls, there should be good lighting and adequate aisle space. All goods should be kept on easily reached shelves so customers do not pull items down on themselves. The stock dropped on floors by customers must be retrieved promptly. Flooring must be in good condition with no frayed or worn spots on carpet and no cracks or holes in flooring. Steps and uneven floor surfaces should be prominently marked. Sufficient exits must be provided and be well marked with backup lighting systems in case of power failure. All goods should be kept on easily reached shelves so that customers do not pull down items on themselves.
If makeovers are offered, employees performing the makeovers must be properly trained and licensed if required by the state. Questions regarding customer allergies should be obtained prior to offering services. Equipment and supplies used for servicing customers should be sterilized between uses or disposed of to prevent the spread of disease. 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. If the business is open after dark, there should be adequate lighting and appropriate security for the area.
There should be a disaster plan in place for unexpected emergencies. Personal injury exposures are from allegations of discrimination and from apprehending and detaining shoplifters, which may result in claims of assault and battery, false arrest or detention, unauthorized or intrusive searches, or wrongful ejection from the premises. Shoplifting procedures must be fully understood and utilized by all employees.
Products liability exposure is normally low unless there is direct import of the products. Foreign-made items should come from a domestic-based wholesaler. Any direct importer should be considered as a product manufacturer.
Workers compensation exposure is moderate due to employees standing for long hours, the use of computers, and restocking which requires lifting and placing items on clothing rods or on shelves. Continual standing can result in musculoskeletal disorders of the back, legs, or feet. Trips, slips, and falls are common. When work is done on computers, employees are exposed to eyestrain, neck strain, and repetitive motion injuries including carpal tunnel syndrome.
Lifting can cause back injury, hernia, sprains, and strains. Shelves should be easily accessible. Stepladders should be available. Employees should be trained in proper handling techniques. Housekeeping in storage areas, especially during peak times, is vital in preventing trip and falls. Skin, eye, and lung irritants can result from handling of hair, hair products, cosmetics or chemical applications used to service customers.
Cleaning workers can develop respiratory ailments or contact dermatitis from working with chemicals. In any retail business, hold-ups may occur. Employees should be trained to respond in a prescribed manner.
Property exposures are moderate. Ignition sources include electrical wiring and heating and cooling systems. These should be maintained and meet current codes for the occupancy. Electrical items such as hair dryers and curling irons should be checked often for frayed wires to prevent a fire. Hair is extremely combustible. Should a fire occur, the stock and its packaging materials provide a combustible fire load that is highly susceptible to water and smoke damage. Hairsprays and aerosol items used for styling add to the fire potential.
Individual items may be shoplifted. Appropriate security measures should be in place, including physical barriers to prevent entrance to the premises after hours and an alarm system that reports directly to a central station or the police department. Business interruption exposures are low. Except for custom-made items, replacement stock is usually available quickly.
Crime exposures are from employee dishonesty and theft of money and securities either from holdup or safe burglary. Background checks should be conducted on all employees handling money. There must be a separation of duties between persons handling deposits and disbursements and reconciling bank statements. Receipting, inventory monitoring, and regular auditing are important. Money should be regularly collected from cash drawers and moved away from the collection area, preferably to a safe on premises. Bank drops should be made regularly to prevent a buildup of cash on the premises.
Inland marine exposures are from accounts receivable if the store offers credit, computers to transact sales and monitor inventory, and valuable papers and records due to customers', employees', and vendors' information. Backup copies of all records, including computer files, should be made and stored off premises. There will be a bailees exposure if the store cleans or repairs hairpieces belonging to customers. There may be goods in transit between stores or if the store delivers items to customers.
Commercial auto exposure is generally limited to hired and non-owned liability for employees running errands. If the store delivers items to customers, only company vehicles should be used. Drivers must have a valid license and acceptable MVR. Vehicles must be regularly maintained with records kept.
What Does Wig Store Insurance Cover & Pay For?
Wig stores can face various types of lawsuits, and insurance coverage can help protect them financially in case of such claims. Some of the reasons why wig stores are sued include:
Product liability claims: Wig stores may face product liability claims if their wigs are defective, causing injury or harm to the wearer. For instance, a wig may cause an allergic reaction or result in hair loss due to improper materials or manufacturing. Insurance coverage can help pay for legal fees and settlements in such cases.
Personal injury claims: Wig stores may face personal injury claims if a customer is injured while on their premises. For example, a customer may slip and fall due to a wet floor or trip over a loose rug. Liability insurance can cover the costs of medical bills and legal fees associated with such claims.
Intellectual property claims: Wig stores may face intellectual property claims if they sell wigs that infringe on another company's trademark or patent. Insurance can help pay for legal fees and damages in such cases.
Employment-related claims: Wig stores may face employment-related claims if an employee files a lawsuit for discrimination, harassment, wrongful termination, or other workplace-related issues. Employment practices liability insurance can help cover the costs associated with such claims.
In each of these examples, insurance coverage can help wig stores pay for the legal fees, settlements, and damages associated with the lawsuits. The specific coverage and limits provided by insurance policies will vary, but having appropriate insurance coverage can help protect wig stores financially and minimize their risk exposure.
Commercial Insurance And Business Industry Classification
- SIC CODE: 5699 Miscellaneous Apparel and Accessory Stores, 5999 Miscellaneous Retail Stores, NEC
- NAICS CODE: 448150 Clothing Accessories Stores
- Suggested Workers Compensation Code(s): 8017 Store - Retail NOC
5699: Miscellaneous Apparel and Accessory Stores
Division G: Retail Trade | Major Group 56: Apparel And Accessory Stores | Industry Group 569: Miscellaneous Apparel And Accessory Stores
5699 Miscellaneous Apparel and Accessory Stores: Establishments primarily engaged in the retail sale of specialized lines of apparel and accessories, not elsewhere classified, such as uniforms, bathing suits, raincoats, riding apparel, sports apparel, umbrellas, wigs, and toupees. This industry also includes custom tailors primarily engaged in making and selling men's and women's clothing, except fur apparel. Establishments primarily engaged in making fur apparel to custom order are classified in Industry 5632.
- Bathing suit stores-retail
- Belts, apparel custom-retail
- Custom tailors-retail
- Dresses made to order-retail
- Dressmakers'shops, custom-retail
- Merchant tailors-retail
- Raincoat stores-retail
- Riding apparel stores-retail
- Shirts custom made-retail
- Sports apparel stores-retail
- Tee shirts custom printed-retail
- Umbrella stores-retail
- Wig toupee and wiglet stores-retail
Wig Store Insurance - The Bottom Line
Getting wig store insurance quotes can be a bit tricky because there are not as many companies offering this type of insurance. The best place to start is the internet. A quick search will get you a handful of brokers you can contact. You may get an online quote, but in this case, it is best to contact them directly in person or by phone.
Additional Resources For Retail Insurance
Read valuable small business retail insurance policy information. In a retail business, you need to have the right type of commercial insurance coverage so that your store, employees, and inventory are protected.
- Adult Novelty
- Antique Dealers
- Appliance & Electronics Store
- Army Navy Surplus Stores
- Art Dealers
- Art Gallery
- Arts & Crafts Supply Stores
- Bicycle Shop
- Boat Dealers
- Book Store
- Bridal Shop
- Candy Confectionery Store
- Carpet Store
- Cell Phone Stores
- Clothing Store
- Collectibles Memorabilia Store
- Consignment Stores
- Convenience Store
- Cosmetics Store
- Costume Stores
- Dry Cleaning
- Embroidery Services
- Equipment Rental
- Fabric Stores
- Fish Markets
- Flea Markets
- Funeral Home
- Furniture Store
- Gift Store
- Greeting Card Stores
- Hardware Store
- Harness & Saddle Shops
- Home Improvement Store
- Infant, Baby & Children's Clothing Stores
- Jewelry Store
- Lamp Stores
- Lingerie Store
- Luggage Store
- Meat Market & Butcher Shop
- Men's Clothing Stores
- Music Store
- Office Supply Store
- Paint & Wallpaper Store
- Pawn Shop
- Pet Store
- Pharmacy Liability
- Plumbing Supplies Fixtures Store
- Poultry Dealers
- Rent To Own Stores
- Scrap Metal Dealers
- Sewing Store
- Shoe Store
- Sporting Goods Store
- Stationary Store
- Thrift Store
- Ticket Agency
- Tire Store
- Tobacco Store
- Toy Store
- Travel Agency
- Trophy Stores
- Tuxedo And Formal Wear Rental Store
- Vending Machine Operators
- Wig Store
- Women's Clothing Stores
- Specialty Retail Stores
The retail industry is a vital sector of the economy, providing goods and services to consumers across the globe. It is also a sector that is constantly evolving, with new technologies and trends emerging on a regular basis.
Despite its importance, the retail industry is not without its risks. Retail businesses face a variety of threats, including theft, damage to property, and liability issues. These risks can have significant financial consequences for retail businesses, which is why commercial insurance is so important.
Insurance can provide retailers with protection against financial loss resulting from unforeseen events. For example, if a retail store is damaged by a natural disaster, insurance can help cover the cost of repairs and help the business get back on its feet. Similarly, if a retail employee is injured on the job, insurance can help cover their medical expenses and any lost wages.
In addition to protecting against financial loss, commercial insurance can also help retail businesses protect their reputation. If a retail business is sued or faces other legal challenges, insurance can provide financial support and legal representation. This can help to protect the business's reputation and maintain customer trust.
Overall, insurance is an essential component of a successful retail business. It helps to safeguard against financial loss and protect against potential legal challenges, which can be especially important for smaller businesses that may not have the resources to absorb these types of losses.
By investing in business insurance, retail businesses can ensure that they are well-equipped to handle the many challenges that come with operating in this dynamic industry.
Minimum recommended small business insurance coverage: Business Personal Property, Business Income and Extra Expense, Equipment Breakdown, Employee Dishonesty, Money and Securities, Accounts Receivable, Computers, Valuable Papers and Records, General Liability, Employee Benefits, Umbrella, Hired and Non-owned Auto & Workers Compensation.
Other commercial insurance policies to consider: Building, Earthquake, Flood, Leasehold Interest, Real Property Legal Liability, Computer Fraud, Forgery, Bailees Customers, Goods in Transit, Jewelers Block, Cyber Liability, Employment-related Practices, Business Auto Liability and Physical Damage and Stop Gap Liability.