As a business owner, it’s important that you separate your personal assets from your professional liabilities and make arrangements for protection from lawsuits as far as you can. Because it’s almost impossible to predict mishaps and losses, business insurance becomes an essential element of running a nail salon business smoothly.
If you’re at the cusp of starting a nail salon, you need to be sure why you need business insurance.
1. Say, a guest has a fall at your nail salon and breaks their arm. You will be liable to cover their medical expenses. Or their expensive handbag is damaged when your staff accidently pours a cleaning agent on it. You will have to cover the damages. Such payments will go out of your business’s account and can cost you hundreds of thousands of dollars or more. You have to protect your nail salon from such claims. A General Liability Insurance would give you coverage from a variety of claims such as bodily injury and property damage liability, personal and advertising injury, medical payments, products completed operations and damage to premises rented to you. While general liability insurance is not mandated by law, the policy will help cover unexpected expenses and damages without harming your business.
2. If a guest claims of negligence or misconduct related to the services you provide, such as inaccurate advice, omission or failing to deliver a service, your business will be liable to pay for damages. You will also need to cover for defence costs that can be a setback to your business accounts. In such cases, a Professional Liability Insurance, also known as errors and omissions insurance, can provide coverage from claims of negligence against your business.
3. If an employee in your nail salon gets injured at the workplace, your business has to cover their medical and rehabilitation expenses. In addition, if an on-the-job injury renders an employee unable to work, you will need to pay partial wages for a specified period of time. In case of death, death benefits will need to be paid out to the employee’s family. Worker’s Compensation Insurance, which is mandated by all states, but with varying regulations, helps cover injured employees and protects your business from lawsuits, especially in cases where an injury is not covered by the insurance.
4. Robbery, vandalism or a disaster such as fire can damage your commercial property and lead to temporary shutdown of your business. A Business Owner’s Policy (BOP) provides coverage of commercial property, protecting you from a devastating loss. BOP, as a matter of fact, covers general liability insurance as well, and is ideal for small business owners such as nail salons. For repairs and replacement of tools, furniture and inventory, look no further, for BOP covers those too.
5. In case you retail products at your nail salon, you may be exposed to claims from clients for bodily injury or property damage caused by the products you sell. A Product Liability Insurance will help cover damages and legal fees.
Before starting a nail salon, it’s important to do a bit of research on your state’s website to figure out mandated insurances and other policies that your business may need. Policies that combine various coverages will help fit them in a comfortable budget and keep your business protected from unforeseen claims and lawsuits.