Business Insurance for Barber Shops
Barbershops are more than just a place to get a haircut and a shave. In cities and towns all over this country, barbershops are the center of the community. They're the place where people, stories, and service converge.
But like any business, barbershops face their share of challenges. Sometimes accidents happen, and without barber insurance, a single incident could be enough to close down your shop. Even if you only rent a chair in a shop, you can be held responsible for customer injuries or dissatisfaction with your services.
On that note, it's a good idea for barbershop owners who rent chairs to require barbers to carry their own insurance.
Let's look at some of the barber insurance policies you may need if you own your own shop or work as a barber for hire.
General Liability Insurance
General Liability Insurance typically covers third-party (i.e., non-employee) lawsuits over bodily injuries, property damage, and advertising disputes involving your barbershop.
So say a customer comes in for a trim and trips in the shop. The customer sues you to cover his medical bills. General Liability Insurance should be able to cover your legal expenses, including…
- Attorney fees.
- Court costs.
- Settlements or judgments.
The policy's property damage liability protection is important, too. If your landlord sues you for damaging the building, your General Liability may help cover those costs. If you work as a contractor and damage the shop owner's equipment, General Liability Insurance can help cover the cost to replace their damaged property.
This policy is pretty affordable, too. Barbers typically pay $425 a year, or roughly 35 bucks a month.
A Business Owner's Policy (or BOP) is another way to get basic liability protection. It bundles General Liability Insurance with Commercial Property Insurance, usually at a lower rate than you'd pay if you purchased each policy separately.
Commercial Property Insurance can cover property and tools your business owns, including…
- Your shop.
- Wash stations.
- Cash registers and payment devices.
If these are damaged or lost because of theft, vandalism, fire, or windstorms, Commercial Property Insurance can help pay for repairs or replacements.
Professional Liability Insurance
Professional Liability Insurance (also called Errors and Omissions Insurance) typically covers legal expenses when a customer claims you made a professional mistake. For example, if a customer sues over a bad haircut that allegedly made them lose a job opportunity, your policy can cover the legal expenses.
It's also worth noting that you don't have to do anything wrong to get sued. Oftentimes, these lawsuits can be based on subjective client evaluations of your service. Even when the lawsuit is baseless, your Professional Liability policy can still protect you.
For barbershops, this coverage typically costs $455 per year (about $38 a month).
Workers' Compensation Insurance
Workers' Compensation Insurance can protect barbershops when their employees are injured at work. People unfamiliar with barbershops don't realize how often barbers cut their knuckles trimming hair and how sharp a professional pair of scissors must be. Even if your employees don't injure themselves while trimming hair, other accidents could happen.
A barber could slip on the floor, strain their back while stocking supplies, or suffer an injury in a random, clumsy accident. When that happens, Workers' Comp can help cover employee medical expenses and partial lost wages if they can't return to work right away. Depending on your local state laws, you may be required to have Workman's Comp.