Barber Insurance 101: Protecting Your Barbershop and Business
We all know a barbershop that has been the victim of theft. After hours, a thief breaks in to the shop and steals everything. Clippers, shears, blowdryers and more. We’re talking thousands of dollars worth of equipment. If the shop owner has the proper insurance, they will likely receive money that will help them replace their stolen equipment. On the other hand, if the shop owner does not have insurance, well they’ll have to replace their equipment with no help.
Every barbershop needs insurance. Just like other businesses, barbershops face various risks that can impact their financial well-being. Insurance is a safety net, providing protection and peace of mind in the face of unexpected events. From safeguarding tools in your station from theft to shielding your business from possible accidents to clients, understanding insurance is vital for ensuring a thriving and secure future. So, let's explore the various aspects of insurance and why it's a must-have for every professional in the industry.
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Types of insurance you should consider:
General Liability Insurance: This insurance provides coverage for bodily injury, property damage, and personal injury claims that may arise due to accidents or incidents at your barbershop. For example, if a customer slips and falls in your shop, this insurance would help cover their medical expenses and any legal costs if they decide to sue.
Commercial Property Insurance: This type of insurance covers your physical assets, including the building (if you own it), equipment, tools, furniture, and inventory, against perils like fire, theft, vandalism, and some natural disasters.
Professional Liability Insurance (Errors & Omissions Insurance): Also known as malpractice insurance, this coverage protects you and your barbershop against claims of negligence, errors, or omissions related to your professional services. For instance, if a client claims that you made a mistake in their haircut and demands compensation, this insurance would help cover legal expenses and settlements.
Business Interruption Insurance: This insurance is crucial for covering the loss of income and ongoing expenses if your barbershop is forced to temporarily close due to a covered event, such as a fire or natural disaster.
Workers' Compensation Insurance: If you have employees, workers' compensation insurance is usually mandatory in most jurisdictions. It provides medical benefits and wage replacement to employees who get injured or become ill while performing job-related duties.
Employment Practices Liability Insurance (EPLI): This insurance protects your barbershop against claims from employees regarding discrimination, harassment, wrongful termination, or other employment-related issues.
Cyber Liability Insurance: If your barbershop collects and stores customer information electronically, cyber liability insurance can help protect against data breaches and cyber-attacks that may result in legal and financial repercussions.
Crime Insurance: This type of insurance can protect your business against losses resulting from theft, robbery, burglary, employee dishonesty, or other criminal acts.
Business Owner's Policy (BOP): A BOP is a bundled insurance package that often combines general liability, property insurance, and business interruption insurance, offering cost savings compared to purchasing each policy individually.
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Things to think about
Remember, the insurance needs of your barbershop may vary based on factors such as the size of your business, the number of employees, the location, and the services you offer. It's essential to work with a knowledgeable insurance agent or broker who can assess your specific risks and tailor a comprehensive insurance plan that meets your needs and budget. If you need help finding insurance, reference the list at the bottom of this blog for help.
If you are renting a chair, I highly recommend asking the barbershop owner about their insurance coverage. Ask them for a copy of their insurance policy so that you are prepared in case of an emergency.
If you are a barbershop owner, I highly recommend sharing your insurance coverage with your barbers so they have peace of mind. This should be covered during onboarding for the barber. Over communication is always better than no communication.
Looking for insurance? Let’s make this simple, here are 4 steps to get insurance.
Select a company that provides insurance for barbers. Examples: National Association of Barbers, State Farm and Hiscox.
Contact them to get a quote by filling out the contact form on their website.
Talk to one of their agents on the phone so that you understand the different policies
Choose a policy that meets your needs
Written by Matthew Mendoza
Licensed barber, educator and consultant based in California. He is passionate about helping barbers pass their barber exam, develop their business and diversify their income. He hosts a podcast, writes a weekly newsletter and offers 1-on-1 consulting.
