Salon insurance changes with your state, your services and who works for you. So here are the seven questions I'd bring to a licensed agent before you sign or renew.
Salon insurance really comes down to three things: your state, the services you offer, and whether you have employees or booth renters. I'm not an insurance agent, and Storm is a marketing agency, so I'm not going to tell you what to buy. But I think it's so important to know what's actually in your policy before you ever need it. So these are the questions to ask, and you'll walk out knowing what you're covered for.
1. Does this policy cover every service we offer?
Go through your service menu with the agent, line by line. Color, lightener, perms, keratin, extensions, lashes, waxing. Ask which ones are covered and which ones aren't, and get it in writing. If a service isn't named, that's a question, not a yes.
2. If a client says a service hurt them, which part of the policy pays?
Agents usually split this into two parts. General liability is for harm that isn't from the service itself, like a client who trips in your lobby. Professional liability is for a claim that the service itself caused harm. So ask your agent to show you where each one is in your policy, and what the limit is on each.
3. Are my booth renters covered by my policy, or do they need their own?
Don't guess on this one. Ask your agent, and then ask each renter for a copy of their own certificate of insurance and keep it on file. It's not personal, it's policy, right? Our booth rental agreement guide covers putting that in writing.
4. Am I required to carry workers' comp in my state?
This one really depends on your state and how many people work for you. Texas is the only state where private employers can choose not to carry it, according to the Texas Department of Insurance. Everywhere else, check with your state's workers' comp agency before you hire.
5. What happens to my chairs, tools and space after a fire, flood or break-in?
Ask what your property coverage includes, whether flood is part of it or sold separately, and whether it pays to replace your equipment or only what it was worth used.
6. If we have to close for repairs, does anything cover the lost income?
Ask if your policy includes business interruption coverage, how long it pays, and how long you have to wait before it kicks in.
7. What is my deductible and my limit on each part of the policy?
Write both numbers down for every part. And then ask your agent which claims they see salons file most often. That way you know which numbers matter most for a business like yours.
Why it matters
I know this isn't the fun part of owning a salon. But it's the part that lets you keep owning one when a bad day comes. So put a reminder on your calendar a month before your renewal, and bring this list with you.