To insure your hair salon business for the best price and cover all the risks you face the conversation will likely start or potentially end sounding like this:
Does you beauty shop rent space to hairstylists as independent contractors OR employ beauticians directly?
Why is this a guaranteed question?
Because the status of how beauty salon staff is employed drastically changes your coverage. It directly influences if employees fall under workers compensation coverage or are picked up under the premises liability exposure. We will showcase both situations in simple language to help you become knowledgeable and able to play an active role in deciding how to run your hair salon.
When hair salon beauticians are independently contracted:
If all or most of the professional beauticians are contracted as independent hairstylists, then the insured has a general contractor type of responsibility to the subjected employees. Hairstylists are working for themselves and using the space within the beauty salon to provide service. Employee injuries sustained under such a relationship are part of the premises liability exposure and are not filed under workers compensation.
The contractual relationship is very important in understanding who is covered and more importantly how they are covered. The relationship between employer and employee is essential in providing the appropriate limits of coverage and find a price that is competitive to insurance needs.
When hair stylists are employed as a beauty salon staff member:
When employees are seen as a employed stylists the injuries and accidents of employees are filed under the insureds workers compensation coverage. The contractual agreement between the shop and the stylist set the stage for the beauty shop insurance coverage.
Workers Compensation is very limited for beauty salons. There is not a high level of risk exposure. Most often injuries that hair dressers face are minor cuts and burns that occur fairly often, some potentially resulting in infection. It is important that as a beauty salon employer employees are given time for rest to avoid common injuries that can become more common with repetitive motion. Rest is also beneficial to allow employees to relieve stress from legs and back.
More Than “A Little Off The Top”
When a hair salon is insured incorrectly they are wasting a large amount of money and facing a great amount of risk. If a beauty salon is insured incorrectly and faces a claim, there is a good change the claim quickly exceeds the policy limits or worse it may not be covered.
Our Georgia Insurance Company doesn’t want your company to face setbacks due to minor injuries and claims that occasionally arise. Your success is important to us and we believe with good insurance we can help your hair salon be protected no matter if your employees are independently contacted beauticians or they are staffed hairstylists.
We would love to quote your hair salon with the right coverage for your company.
You know what question your going to be asked when we quote your salon and you realize now how important it is to ask such a question.