Wig stores sell wigs, hairpieces, toupees, hair extensions, and hair care accessories. Customers range from theatre performers who need the wig or hairpiece for playing a part to older adults with thinning hair or hair loss to those recovering from an illness-related hair loss. Hair pieces can be made of human hair or synthetic hair, that looks and feels natural. As the small business owner of a wig boutique you face a number of risks, including crimes like shoplifting or theft, injuries in the store to your employees or customers, or basic business risks such as damage to your property. Wig store insurance is the best defense to protect against these risks.
Types of Wig Store Insurance
To be well protected, your wig store should be covered by the following insurance policies. Each of these business insurance policies cover a different type of risk, depending on the unique circumstances of your wig store.
The first policy to have in your insurance portfolio is general liability, which covers personal injury, completed operations, and products liability. While it may be a rare happenstance, if a customer trips over a wig stand and hurts herself, general liability policy would help cover the medical costs. Likewise, if you make a custom hairpiece for a customer that later causes them irritation or hair loss, they can sue you; however general liability includes completed operations which will help protect you. Further, as part of a general liability policy, products liability is for any damage or loss caused by the products you sell.
If you use a personal vehicle for running business errands, such as delivering custom-ordered wigs, picking up new merchandise for the store, or running to the bank or office supplies store, you should be covered by business auto insurance. This policy is a commercial insurance policy for your car when it is used for business purposes. If you get into an accident while making a delivery, the damage to your car, your person, and the others involved will be covered by the policy.
Wig Store Business Owners Property (BOP)
To obtain multiple coverages in a single policy, purchase a business owners policy (BOP). This includes your choice of coverages in a package, including electronic data, business income protection, property and contents, equipment breakdown, general liability, and more. In other words, a BOP bundles or assembles major coverages that you and your insurance agent deem necessary to protect you from the risks inherent in operating your wig store.
A cyber liability policy is essential if your wig store is also an ecommerce store that sells hairpieces and other merchandise online. A cyber liability policy differs from crime insurance as it covers cyber crimes like the theft of personal or financial information through web transactions. Cyber liability insurance also covers crimes against you, such as paying for merchandise with stolen credit cards or other types of fraudulent activity.
Unexpected events like fire, flood, extreme weather, and natural disasters can cause significant damage to your business property and contents. With a wig store, you are at an even higher risk for fire due to flammable hair pieces and how quickly they can be ignited and destroyed in a fire. To protect your business assets from this kind of loss, get a business property insurance policy.
By law, every employee should be covered by worker’s compensation insurance. This insurance policy is essential as it covers work-related injuries or illness. Your wig store poses risks to employees, such as repetitive motion injuries, back injuries from loading heavy boxes, or cutting their hands on box cutters. These and other injuries are covered by worker’s compensation insurance, including all medical costs and recovery.
The liability policies for your wig store(General Liability, Commercial Auto, and Employers Liability) all have coverage limits. Umbrella liability insurance therefore is used to increase your liability limits for all of these risks under one policy to protect your wig store business for claims that exceed your primary policy limits.
Wig Store Crime Insurance
Although you have probably taken proper security measures against theft and shoplifting crimes, it doesn’t mean it won’t occur in your wig store. Crimes such as embezzlement or theft from employees, vandalism of your merchandise, and shoplifting of wigs can all happen right under your nose. To protect your business from financial loss as a result of these crimes, purchase a crime insurance policy. It will help recover the loss you experienced.
Whether you sell wigs, toupees, or hair extensions, you are open to a number of risks. While you can’t prevent certain events, you can protect your business from financial struggle with wig store insurance.