Commercial Property Insurance for Beauty Businesses
If your beauty business is a spa, salon, or bodywork clinic, a commercial building and pieces of beauty equipment will surely be a part of your investment.
In connection, consider getting commercial property insurance to have a countermeasure in case something happens to such business properties.
Commercial property insurance will allow you to recoup lost investments if your beauty business’s building is damaged or destroyed by:
Fire
Theft
Vandalism
Riot
Civil commotion
Aircraft
Vehicle
Volcanic action
Weather
Sprinkler leakage
Sinkhole collapse
Refunds for your losses is also provided by commercial property insurance if the perils above cause the damage or loss of your beauty business’s equipment such as:
Chairs
Hair dryers
Tanning machines
Jacuzzis
Hair steamers
Beauty beds
Facial machines
Trolleys
Electric massage beds
And more
Before we discuss the amount of coverage you can get from commercial property insurance, you must understand the terms replacement cost and actual cash value.
Replacement cost and actual cash value are two types of commercial property insurance policies available.
A replacement cost commercial property insurance refunds your financial losses as per the original value of the covered property. On the other hand, actual cash value commercial property insurance reimburses lost capital based on the depreciated value of the property it covers.
The amount of coverage you can get from commercial property insurance depends on which particular carrier you decide to work with.
You’ll find insurance companies that only allow you to get $10,000-$25,000 building and contents coverage from the policy. Others are more generous and allow commercial property insurance to offer more than $1 million.
Beauty Business Commercial Property Insurance Exclusions
Your beauty business can’t use commercial property insurance to recover losses if its building and equipment got lost or damaged due to war, terrorism, mudslides, earthquakes, and floods. Nonetheless, you can get endorsements to include these perils in the policy’s language.
Another thing to remember is that commercial property insurance doesn’t provide coverage if business property damage or loss is intentionally caused by an employee or you yourself.
Also, commercial property insurance doesn’t cover equipment that got damaged or lost while being shipped. You can’t also use the policy to recover the monetary value of the properties of other persons that got damaged or lost while in your beauty business’s custody.
Beauty Business Workers Compensation Insurance
Workers compensation insurance is handy if your business employs one or more full-time or part-time employees. This policy covers the following costs if an employee sustains a work-related injury or disease.
Ambulance fees/medical treatment-Workers compensation allows you to cover private EMT fees and hospital emergency treatment fees if an employee sustains an injury or experiences the onset of a work-related injury at the workplace
Hospitalization-Workers compensation insurance covers bills if an employee of your beauty business needs to stay in the hospital to receive intensive medical attention for a work-related injury or disease
Medication-Workers compensation insurance will cover expenses if your employee needs a specific medicine for a work-related injury or disease
Rehabilitation-Workers compensation insurance allows your beauty business to cover the rehabilitation of an employee who sustains permanent or temporary impairment due to a work-related injury or disease
Lost wages-Workers compensation insurance covers lost wages if your employee needs to take a break because of a work-related injury or disease. Compensation for lost wages is a weekly allowance equal to two-thirds or 67% of the average weekly wage
Death benefits-If your beauty business’s employee dies, workers compensation insurance will pay for funeral costs and provide an allowance to dependents
What Will Happen If Your Beauty Business Doesn’t Get Workers Compensation Insurance?
Your beauty business will face hefty fines and penalties if it doesn’t get workers compensation insurance for employees. Punishment depends on which state you’re in. But usually, authorities impose an accumulating fine, a stop-hold order, or a criminal charge to violators.
Beauty Business Commercial Auto Insurance
Commercial auto insurance is available as an optional policy in beauty insurance programs. You need this if your beauty business has a commercial vehicle registered under its name.
There are several types of protection you can get from commercial auto insurance. Each caters to specific undesirable situations that can happen while your beauty business is utilizing its commercial vehicle. Namely, these are:
Auto liability coverage-Your beauty business’s commercial vehicle will cause an accident, and auto liability coverage can wrap things up. It will pay for the medical treatment or property damage of the victims. Plus, if someone files a lawsuit, auto liability coverage will also take care of defense costs
Physical damage coverage-Available as a comprehensive and collision policy, physical damage coverage will cover costs if your beauty business’s vehicle needs to be fixed. Collision physical damage coverage pays for expenses if the commercial vehicle got damaged because of a crash. On the other hand, comprehensive physical damage coverage shoulders cost if the damage is caused by fire, theft, vandalism, and other covered perils
Uninsured/underinsured motorist coverage-Another driver can cause an accident and your beauty business’s commercial vehicle might get involved. If the other driver doesn’t have enough insurance or is uninsured and can’t take care of indemnification, underinsured/uninsured motorist coverage covers your losses instead
Medical payments coverage-Medical payments coverage will pay medical or funeral expenses of the driver and passengers in case of an accident. Coverage applies regardless if the accident was your commercial vehicle’s fault or not
Business Interruption Insurance for Beauty Businesses
Business interruption insurance covers your beauty business’s lost income. If you need to stop business operations, this insurance will supplement lost revenues and enable you to cover payroll, bills, taxes, loans, etc.
Self Employed Beauty Insurance
Insurance companies sell self employed beauty insurance in the form of a short-term general liability policy that lasts for hours, days, weeks, or months. A policyholder also has the liberty to upgrade this freelance beauty insurance into an annual policy. The coverage limit for bodily injuries or property damage is $1 million-$2 million.
Holistic Beauty Insurance
Holistic beauty insurance is for salons and other beauty establishments that provide a wide array of services to clients. Inclusions are general liability, commercial property, workers compensation, and more.
Specialized Types of Insurance Plans for Beauty Businesses
Insurance companies underwrite specialized insurance plans for specific types of beauty businesses. Here’s a quick discussion of each.
Beauty Salon Insurance
Compared to freelance beauty insurance, beauty salon insurance is often a lot more expensive. This is because beauty salons tend to see far more people over the course of a month or a year, increasing the chances that you may have to file a claim with your insurer and increasing their risk.
Tanning Salon Insurance
Out of all forms of beauty and aesthetics insurance, tanning salon insurance tends to be more expensive because of the exposure to UV lights that your clients have to endure. This is due to the risk of skin cancer associated with UV exposure, which means that many insurers refuse to cover these businesses.
Barber Shop Insurance
Hair and beauty insurance quotes for barber shops tend to be a little bit higher than in other industries because of the sharp objects involved in most cases. While it’s rare that someone ends up getting injured at a barber shop, insurance companies will still charge a bit more for barber shop insurance.
Spa Insurance
Spa insurance is usually a little pricey because of the slick surfaces that are relatively common in spas. Many spas have trouble with customers and workers slipping and falling, which often leads to bodily injury suits. This means that insurance carriers don’t hesitate to charge a bit extra on their premiums.
Nail Salon Insurance
Nail salon insurance is a coverage for manicurists and other similar professionals. Whether dealing with manicures or acrylic nails, insurance companies usually won’t charge too much for nail salon insurance if you operate such a business.
Cosmetology Insurance
Cosmetology insurance is usually a little more expensive because of how much training the beauty professional performing the procedure needs. Because of the risk of an unqualified worker making a mistake, insurance companies charge slightly higher premiums for cosmetology coverage.
Bodywork Insurance
Bodywork insurance is also pretty pricey due to the hands-on nature of bodywork procedures, increasing the chances of someone filing a lawsuit or pressing charges. As we’ve established, a higher risk of a client getting charged or sued over their job means that insurance carriers will charge more for coverage, and this is the case for bodywork coverage.
Salon Insurance
There are insurance companies that include all types of salons in their underwriting appetite. They sell a salon insurance plan offering all the business insurance policies salons need. Those who work for salons are offered salon chair and booth rental insurance.
Esthetician Insurance
The same circumstances apply for esthetician insurance. Since estheticians need to be more qualified than in many other fields (in the eyes of insurance companies), their insurance premiums are usually higher. Thankfully, it’s usually only a difference of a couple dollars per month.
Microblading Insurance
Microblading insurance is a specialized coverage for microblading clinics and specialists, inclusions are general liability, workers compensation, commercial property, and professional liability insurance.
Makeup Artist Insurance
Insurance companies underwrite makeup artist insurance for wedding makeup artists, fashion makeup artists, cinema makeup artists, and more. Inclusions are professional liability, general liability, commercial property, public liability, and workers' compensation insurance.
Beauty Therapist Insurance
Beauty therapist insurance is a specialized coverage for beauticians that offers general liability, professional liability, product liability, and workers' compensation insurance. This is also available to other professionals in the beauty industry who are not eligible for the insurance plans above.
Massage Therapist Insurance
Massage therapist insurance is a coverage that caters to the needs of massage clinics and massage professionals. Its primary components are general liability and professional liability insurance.
