As a type of specialty beauty salon, nail salons provide an assortment of nail care services including acrylic nails, manicures, nail painting, pedicures, air brushing, nail repairs, and other cosmetic nail applications. Nail salons need to be careful when it comes to sanitation as this type of business poses risks relating to customer and client safety. Bacterial and fungal diseases can be spread if improper sanitation practices are kept. Sanitation is important not only for your clients, but your employees as well. Risks of operating a nail salon include liabilities related to infections or hygiene violations, along with typical business risks. Nail salon insurance can protect your nail salon from these and other types of risks.
Types of Nail Salon Insurance
Insurance for nail salons is crucial to maintaining a successful business even if something unexpected was to occur. You should consider the following insurance policies for your nail salon:
General liability insurance covers a few types of liabilities, including premises liability, completed operations, and products liability. Your nail salon should be protected from liabilities relating to your premises and operations, in which general liability insurance comes in more than handy. Products liability is especially is important when you run a nail salon because products you use on or sell to your clients has the potential for a lawsuit. For a straightforward example, if during the nail service a product you’re using causes an allergic reactions or rash for the client, they can sue you for any medical costs or damages it caused.
Damage to a nail salon is heightened due to the type of business. This is because of the chemicals used for certain nail services can result in a fire in the building. If damage or loss happens to the property, whether from a chemical fire or natural disaster, it would be covered if you had property insurance. For any business, property insurance is important, but especially so with a nail salon.
As a nail salon business, you and your employees may not use a vehicle for business purposes often, but there are most likely a few chores or business errands that cause you to do so. For example, if an employee needs to pick up additional salon supplies, if you provide mobile nail salon services, or if you need to make a nightly bank deposit, then each of these errands are business related and should therefore be covered by business auto. For any vehicle used for your business, you should be covered by business auto insurance.
Nail Salon Crime Insurance
Crime insurance is a type of business insurance for nail salons that protects against various types of crime that can occur in your service establishment. This may be theft by an employee or client, embezzlement by an employee such as your accountant, shoplifting of nail polishes or other products sold, and/or vandalism to the building or equipment used.
As a nail salon establishment, you most likely sell a variety of products to your customers and clients, including nail polish, polish remover, hand lotion, moisturizer, products for home pedicures, and similar products. If a customer uses a product they purchased from your salon that caused her bodily injury or illness, she could sue you for damages. Product liability insurance protects against these lawsuits and any medical costs your business is responsible for.
Worker’s compensation is an insurance policy that businesses are required to have by most states. It is meant to protect your employees in case they get a work-related illness or injury. For example, an employee that gets a fungal infection from providing manicures to clients or is cut from an electrical file will need medical assistance. Worker’s comp helps to cover the medical costs, treatments, and income lost while they are recovering.
Nail salon insurance protects your salon from these risks, whether they are common or not. Sanitation and safety of your clients is most important, but other business insurance policies are recommended as well.