Hair and Beauty Salon Insurance
What kind of insurance do hair and beauty salon businesses need to consider? The following is a list of common exposures that should be considered when designing a risk management plan. The experts at CMB Insurance are here to guide you to the best hair and beauty salon insurance coverage.
Beauty Salon Risk Management
There are many hazards present at a beauty salon that deserve your attention. This overview of common issues will help you to correct potential hazards, keep your employees safe, and help you to avoid potential liability claims.
Slips, Trips and Falls
Accidents can occur when employees trip on uneven flooring or fall when trying to reach items out of reach.
Solutions:
- Unplug equipment when not in use.
- Keep walkways, workstations and chairs clear. Clean up spills immediately after they occur.
- Provide adequate lighting.
- Provide proper stepladders for employees to reach items that are not accessible from the ground.
Fire
Many products used in beauty treatments, specifically aerosols, are highly flammable and potentially explosive if they are exposed to high temperatures. Also, obstructed exit routes can prevent escape from a fire and can provide fuel to increase the blaze.
Solutions:
- Keep all escape routes and fire exits clear at all times. Conduct regular inspections of these areas to ensure that they are safe.
- Store products away from sources of heat and ignition, at or below room temperature and in a dry place.
- Turn off and unplug electrical devices at night.
- Instruct employees on what to do in case of a fire, and practise fire escape drills on a regular basis.
Electrical Safety
The electrical appliances used in beauty salons are subject to significant wear and tear due to their frequency and amount of use.
Solutions:
- Create a system for regularly inspecting equipment for wear and tear, and do not allow equipment to be used until it is repaired.
- Keep a maintenance log for all electrical equipment.
- Provide adequate sockets for all workstations. Instruct your employees to not overload sockets.
Property exposures
Property exposures result from the machinery used and fire loss from poor wiring, overheating, and poor maintenance. Age and condition of the equipment is important. Most of the chemicals used in the personal applications are not flammable, although some may contain alcohol. Theft is not normally a high concern.
Inland marine
Inland marine may have an exposure to Bailees Customers. Some salons offer all-day events and store the property of the customer. This property needs to be safeguarded.
Occupier’s liability
Occupier’s liability is the main concern where the public comes to the premises. Aisles must be adequate and free of debris with flooring in good condition, no frayed or worn spots on carpet and no cracks or holes in flooring. Sufficient exits must exist and be well marked, with backup systems in case of power failure. Tanning beds, massage, and electrology services provide additional premises exposures that need careful control. Tanning services provide a special set of exposures that may need the services of specialty markets, due to the unknown loss potential for long-term exposure from the radiation and chances of cancer and related diseases.
Parking lots and sidewalks need to be in good repair with snow and ice removed, and generally level and free of exposure to slip and falls. Security of visitors in parking areas is rapidly becoming the responsibility of the owner or operator of the premises. Is the exterior lighting adequate? What other security measures are in place?
Product liability
Product liability exists if the beauty shop sells shampoo and other items. Of particular concern are any products that are made independently.
Professional liability
Professional liability depends on the services offered. Simple wash and cut have incidental exposures while salons that offer full body treatments will have higher exposure. Permanents, hair straightening chemicals and colouring can cause considerable hair and skin damage. Full body mud treatments, pedicures and manicures also increase the professional liability. Who is to be covered under the professional coverage — the owner, the operators, the shop? Understanding the contractual relationship is important. The operators’ training, experience and background are important considerations.
Workplace safety exposure
Workplace safety exposure is often very limited. Shops with more than one chair might be multiple sole proprietorship and not employer/employee relationship. Contracts should be reviewed to know the extent of the relationship and therefore the workplace safety exposure. The shop should permit rest times for employees. Repetitive motion injuries and leg and back injuries are common. Losses also can come from eye and skin irritants resulting from the chemicals.
Minimum recommended coverage:
Business Personal Property, Dishonesty, Disappearance and Destruction., General Liability, Professional, Umbrella, Non-owned Automobile
Other coverages to consider:
Bailees Customers, Employment Practices Liability, Accounts Receivable
Contact CMB Insurance Brokers today to learn about Hair and Beauty Salon Insurance: call 780.424.2727 or click here to get a quote on our insurance services.