To insure your hair salon business for the best price and cover all the risks you face the insurance agent might ask you “Does your beauty shop rent space to hairstylists as independent contractors OR employ beauticians directly?” For an agent, this question is important because it helps them understand the status of your beauty salon staff. Depending on how your hairdressers are employed it will impact the cost and changes to your beauty salon insurance.
The employment status of your beautician directly impacts your coverage if they 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 finding a price that is competitive to insurance needs.
When Hair Stylists Are employed As A Beauty Salon Staff Member
When employees are seen as employed stylists the injuries and accidents of employees are filed under the 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 salon insurance. There is not a high level of risk exposure. Most often injuries that hairdressers 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 chance the claim quickly exceeds the policy limits, or worse it may not be covered. Your success is important, and with good insurance, your hair salon can be protected no matter if your employees are independently contacted beauticians or if they are staffed hairstylists.
Contact Our Beauty Salon Experts For More Information
Our Georgia Insurance Company wants to help your business prevent setbacks due to minor injuries and claims that occasionally arise. You know what question is going to be asked and the importance of it. Let us help you get the right coverage. Contact us online or by phone at (888) 971-5657.