Insurance needs for the business of beauty salon or spa is met with salon liability insurance. This insurance is similar to general liability insurance that all places of business need to have.
However, while a general liability policy covers thing like slips and falls, and other accidents that could result in an injury to a client or to their property, it is more than that.
Salons offer a host of services, any of which could go wrong and result in injury. These include but are not limited to skin treatments such as microdermabrasions, laser treatments, botox injections, and permanent makeup, as well as hair styling that includes the use of sharp objects, harsh chemicals such as peroxides, risks of allergic reactions, and even the possibility of the expectations of the client not being met – yes, this is unfortunately a valid cause for civil court action.
Salon insurance is a specialized form of professional liability insurance that covers these types of liabilities.
Additional considerations when shopping for professional liability insurance is coverage for claims of: sexual assault, misconduct, or other abuse; discrimination; legal expenses; and product liability. As an example, we can examine product liability in detail, next.
Some salons repackage skin cream and hair treatment products into their own privately labeled packaging. In some cases, they are then considered a manufacturer, under the law.
This raises the possibility of liability for any adverse reactions to the products. Since we don’t know the future, but we do know human nature, it is reasonable to expect that some customers will blame the salon if a product causes any kind of harm. But there are even more potential problems.
A disgruntled employee at a hand cream manufacturer thousands of miles away could slip something into a batch of skin emollients in an effort to harm the companies reputation. Everyone likes to be optimistic, but Murphy’s law says that if something can go wrong, it will.
Professional liability insurance will cover these kinds of situations. For the salon owner who is repackaging treatments and who doesn’t have insurance, it is a good idea to at least consider trying to get the original manufacturer to add their name to the manufacturer’s insurance policy.