Below are answers to some of our most frequently
asked questions. Feel free to contact us with any other questions you may
have.
Why an agent that specializes in beauty salons?
An agent that specialize in Beauty Salon insurance can offer a unique and
realistic perspective on the exposures you are most likely to face, and can
advise you on the best course of action to meet your specific needs.
What is the difference between professional
vs. business liability?
There are two basic types of liability, business liability and professional
liability. Business liability protects you against bodily injury
lawsuits, for example, a lawsuit claiming that a customer or visitor was
injured while on your premises (most commonly a trip and fall). Business
liability also provides protection against property damage claims; personal
injury lawsuits involving libel or slander; claims arising from the physical
eviction of a person while on your premises and/or claims of false arrest;
and claims arising from false advertising.
The second type of coverage is professional liability. Unlike business liability,
professional liability only covers your professional services. That is to
say, professional liability might protect you against claims made by customers
who suffer an injury arising out of services provided by your business as
a beauty salon (hair coloring etc.). Beauty salon owners sometimes make the
mistake that their professional liability insurance will cover a tanning
bed claim — it won’t, and if you are uninsured, your personal
assets could be at risk, including your car and home.
How much liability insurance should I get?
In view of skyrocketing court settlements, it probably comes as no surprise
that a legal liability limit of $1million no longer can be considered excessive,
even for the smallest salon. The good news is, the cost difference between
$300,000 vs. $1 million in liability coverage usually is quite affordable.
Assuming you recognize the need for increasing your liability insurance,
how do you go about estimating the amount of coverage you’ll actually
need? Some experts say you should base your limits on annual revenues, but
that can be costly.
Salon owners should evaluate how much they can afford to lose and make sure
the coverage protects at least to that point. Remember, a catastrophic loss
can deliver a knockout punch that can devastate your financial future, so
don’t put yourself at risk. One key thing to remember, if you
are underinsured, your personal assets could be at risk, including
your car, home and any future income.
Why an Independent Agent?
We do not work for an insurance
company; we work for you. We work
on your side when you have a loss and follow through to see that you get
fair, prompt payment.
We represent a carefully selected group of financially sound, reputable insurance
companies, and we place your policy with the company offering the best coverage
at a competitive price.
What is hired and non owned auto? Do you need it?
Non-Owned & Hired auto liability covers bodily injury and property damage
caused by a vehicle you hire (including rented or borrowed vehicles) or caused
by non-owned vehicles (vehicles owned by others, including vehicles owned
by your employees).
It usually does not pay for physical damage to the vehicle itself; that's
covered by the owner's insurance. Although, this option is sometimes available.
Whether you realize it or not, as a business owner, you at least occasionally
find yourself in situations where this coverage is needed. Errands and rental
situations always come up.
Examples:
> You send an employee to pick up lunch.
> While on a business trip, you rent a car.
> To impress a visiting client, you send a limo to have him picked up.
> An employee runs to pick up office supplies.
Hired and non owned auto DOES NOT cover the autos involved in the accident,
it offers coverage to the employer if the employee was involved in an accident
while “on the clock” and the employer is sued.
You don't have to own a business vehicle to have this coverage. In most situations,
coverage can be added to your general liability policy.
What is Employee Stop Gap Coverage?
To understand what stop gap coverage is and who needs it, you
must first understand how workers compensation and employers liability insurance
work. A key coverage of standard workers compensation insurance is the payment
of benefits to employees that are injured on the job. These benefits are
paid without regard to fault in exchange for the employee giving up his or
her right to sue the employer. Even though workers compensation insurance is
generally the exclusive remedy for injury to employees, in some situations
an employer can be held liable and sued for injuries to his or her employees.
These include third-party-over actions, consequential injury (loss of consortium,
loss of services, etc.) to an injured employee’s family members, dual capacity
claims, and intentional tort claims, and claims for injury or disease not covered
by workers compensation laws. In five states, however, workers compensation
insurance is provided by a state fund, rather than by private insurance. The
state fund is the exclusive source of workers compensation insurance in these
states. North Dakota, Ohio, Washington, West Virginia, and Wyoming have monopolistic
state funds. This Endorsement when attached to the policy extends employers'
liability coverage to employers located within the five monopolistic state
funds (North Dakota, Ohio, Washington, West Virginia and Wyoming).
The stylists in my salon are independent contractors and
booth rent, do they need to carry their own professional liability insurance
or does my professional liability insurance cover them?
If the stylists works SOLELY in your salon then they would be considered “employees” under
most Barbers and Beauticians Professional Liability policies and professional
liability coverage would be extended too them.
I don’t have Tanning beds now, but I was thinking about buying
one to put in my salon, would my insurance cover that?
With most companies they will cover the tanning bed itself as business personal
property. However, neither the general liability nor the barbers and
beauticians professional liability will provide liability coverage for the
tanning bed. Additional liability coverage is needed to cover the
liability for the tanning bed.
My stylists are employees of the company but they purchase their own shears,
blow dryers, curling irons, etc. would my policy cover their things or should
they have a policy to cover their property?
If you as the salon owner wish to cover your stylists equipment that they
have purchased, that can be included in your policy. In most cases
if the stylist owns their own equipment, coverage can extend from their personal
homeowners policy by simply adding an endorsement to their home owners policy. However,
if there is a claim for the equipment, it is subject to the homeowner’s
deductible.
What is Employment Practices Liability Insurance
(EPLI)?
Employment
Practices Liability Insurance (EPLI) offers coverage for employment related
claims and lawsuits from past, present, or a future employee. Most general
liability policies specifically exclude employment related claims. Thus
if there is a lawsuit regarding employment practices there would be no coverage.
Depending on the company, an Employment Practices Liability Insurance (EPLI)
endorsement can be added to the commercial liability policy to protect the
employer from the costs of an employment related lawsuit.
Employment related lawsuits consist of litigation pertaining too:
> Sexual harassment
> Wrongful Termination
> Discrimination
> Statue Violation
> Negligent Hiring
> Negligent Supervision
> Negligent Promotion
> Negligent Retention
> Sexual harassment
> Wrongful Termination
> Discrimination
> Statue Violation
> Negligent Hiring
> Negligent Supervision
> Negligent Promotion
> Negligent Retention
> Disabilities
Every employer no matter if your business is large or small faces the reality
that it could be the target of legal action. Defending a wrongful termination
or discrimination claim, whether you are innocent or guilty, or even if the
claim is groundless or fraudulent, can be expensive and time consuming.
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