Do you really need business insurance for your salon? Absolutely! You know the saying… crap happens! Well, that’s the cleaned up version anyway. Unexpected mishaps are the worst enemy of any type of business and making plans to deal these situations in advance is just a good business practice.
Why Have Insurance?
Not only are most businesses required to have some form of coverage by law, the idea of preparing for the worst just makes good business sense. Fire, theft, and employee, let alone client accidents or lawsuits can destroy a business and even tap personal assets, like your home or savings.
Outweighing the Costs
Insurance costs should be considered from the initial concept of opening a salon and factored into the overhead expenses. Nobody wants to pay high premiums, but having to pay out-of-pocket for any claims (which DO happen) can cost much more in the long run. One small disaster, let alone a major catastrophe, can cause the quick demise of a small business that is not insured.
A common misconception is that small business insurance is expensive, however in the grand scheme of things, not having insurance could be MUCH more expensive.
The Basics
Go for insurance solutions to at least cover basic property and casualty risks (liability) and then decide what sort of deductable is right for your situation. The higher your deductable, the lower the premiums. However, don’t shoot yourself in the foot with an unreasonable expectation should something go wrong. The best suggestion is to not have a deductable higher than your business savings account. An account with a balance that you never draw from, except in the case of a claim.
Managing Risk
Risk management, in the realm of insurance, is the process of understanding, evaluating and addressing possible risks in your business that may cause an insurance claim. Managing risk is also the key to successfully keeping insurance costs under control.
Recognize and act upon areas of concern including potential risks to both employees and clients. Install safety precautions as needed, provide regular monitoring and claim evaluations to help prevent future claims, and examine all reoccurring claims. If something in your salon causes injury, property damage, or any other claim that costs you money, it needs to be identified and corrected right away.
Insurance Types
There is no standard answer for the types of insurance a business should carry but as a business owner, you are liable for what happens in and around your business. Therefore, at the very least, liability insurance should be a top priority to protect both your business and personal assets.
As far as workers’ compensation insurance, requirements vary from state to state so do some research in your area. Regardless, some form of workers’ compensation coverage should be in place to cover employee medical and disability expenses, but also to cushion the complications of employee claims. According to the insurance industry, employees versus clients make the majority of claims. Make sure you are ready for the proverbial rainy day with the right insurance.
Solving the Salon Insurance Quandary
Do you really need business insurance for your salon? Absolutely! You know the saying… crap happens! Well, that’s the cleaned up version anyway. Unexpected mishaps are the worst enemy of any type of business and making plans to deal these situations in advance is just a good business practice.
Why Have Insurance?
Not only are most businesses required to have some form of coverage by law, the idea of preparing for the worst just makes good business sense. Fire, theft, and employee, let alone client accidents or lawsuits can destroy a business and even tap personal assets, like your home or savings.
Outweighing the Costs
Insurance costs should be considered from the initial concept of opening a salon and factored into the overhead expenses. Nobody wants to pay high premiums, but having to pay out-of-pocket for any claims (which DO happen) can cost much more in the long run. One small disaster, let alone a major catastrophe, can cause the quick demise of a small business that is not insured.
A common misconception is that small business insurance is expensive, however in the grand scheme of things, not having insurance could be MUCH more expensive.
The Basics
Go for insurance solutions to at least cover basic property and casualty risks (liability) and then decide what sort of deductable is right for your situation. The higher your deductable, the lower the premiums. However, don’t shoot yourself in the foot with an unreasonable expectation should something go wrong. The best suggestion is to not have a deductable higher than your business savings account. An account with a balance that you never draw from, except in the case of a claim.
Managing Risk
Risk management, in the realm of insurance, is the process of understanding, evaluating and addressing possible risks in your business that may cause an insurance claim. Managing risk is also the key to successfully keeping insurance costs under control.
Recognize and act upon areas of concern including potential risks to both employees and clients. Install safety precautions as needed, provide regular monitoring and claim evaluations to help prevent future claims, and examine all reoccurring claims. If something in your salon causes injury, property damage, or any other claim that costs you money, it needs to be identified and corrected right away.
Insurance Types
There is no standard answer for the types of insurance a business should carry but as a business owner, you are liable for what happens in and around your business. Therefore, at the very least, liability insurance should be a top priority to protect both your business and personal assets.
As far as workers’ compensation insurance, requirements vary from state to state so do some research in your area. Regardless, some form of workers’ compensation coverage should be in place to cover employee medical and disability expenses, but also to cushion the complications of employee claims. According to the insurance industry, employees versus clients make the majority of claims. Make sure you are ready for the proverbial rainy day with the right insurance.