Beauty Salon Chair Insurance (Booth Rental Insurance)

Booth Rentals are big business in the world of beauty today. According to a recent article inBeauty Store Business Magazine, booth rentals currently account for 35 percent of all salons in the U.S. Those numbers are expected to rise to nearly 50 percent within the next three years.

When you rent a beauty salon chair or booth, you are running your very own small business. It isn’t a partnership. You have certain responsibilities to ensure that your business is well protected.

In addition to the tools of the trade necessary to do the job, you also need appropriate licenses, must have proper record keeping systems in place so you can pay appropriate taxes, and you must also have adequate insurance coverage.

What Kind of Insurance Do You Need?

Since your beauty salon booth or chair is a business of your own, it’s wise to begin with a standard Business Owner Policy (BOP). This policy offers the basics for your business. Even though you rent, you do have equipment, tools, and supplies to cover in the event of a fire or other covered event.

If your business is forced to shut down for a period of time due to a covered event, you’ll also find that lost income coverage is invaluable as is the general liability insurance found in a BOP should someone trip over your chair or one of your cords and sue for injuries.

If you have one or more employees, state law may require you to provide worker’s compensation insurance coverage too. It’s important to know the laws in your state – even if your employees are part time so that you don’t accidentally break any laws that could land you in legal (not to mention, financial) hot water down the road.

Beyond the standard BOP there are many other types of insurance coverage to consider, one of the most important being professional liability insurance. This is something many in your position are require to discover they need, but one that is too important to overlook in today’s lawsuit-ready society.

What You Should Know about Beauty Salon Chair Insurance

While it’s important to get the facts on the types of coverage you need for your small beauty salon booth rental business, it’s also important to understand potential exclusions to be on the lookout for. These exclusions may need additional policies or not have coverage at all depending on the insurance company you’re working with.

Common exclusions when it comes to beauty salons include:

  •  Laser Equipment
  •  Tattooing
  •  Body Piercing (with the exception of earlobes)
  • Medical Advice
  •  Medical Services
  •  Acupuncture
  • Botox
  • Cellulite Treatments
  • Permanent Cosmetics

Understanding these basics will help you make sound decisions about the business insurance needs of your beauty salon chair business. The best time to make sure you have the coverage you need is before anything goes wrong.