What Types of Insurance Does a Barbershop Need?

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Barbershop Business Insurance Quotes

Costs for business insurance can vary greatly, and getting insurance quotes from multiple companies is recommended in order to get the best pricing.

Embroker, Hiscox, and CoverWallet all offer easy business insurance quotes at affordable prices.

Quick Reference

Barbershops are commonly small operations with a loyal customer base. Depending on its size, a shop can see a dozen customers per week up to several hundred customers. Generally, a shave at a barbershop takes less than 15 minutes. Still, the client and barber can build a meaningful relationship during that time.

A barbershop needs insurance to protect the small business from a financial burden if an incident happens. Unfortunately, a claim can be costly after all the repairs, legal costs, and fees are paid. Without an insurance policy to provide this coverage, the shop is responsible for those payments.

Related: How to start a barbershop

What Are Some Risks for a Barbershop?

A barbershop is exposed to some of the following risks:

  • Customer injury
  • Poor or incorrect styling
  • Fire damage
  • Employee injury

This list is not exhaustive, but it does reveal the importance of insurance. You can protect your business from experiencing financial hardships by covering your exposures to risk with an inclusive barbershop insurance package.

Customer Injury

Clients come onto the barbershop’s property regularly. There is no “remote” work in this industry because the barber works directly with the client. Clients coming on the property can be injured—commonly from slips and falls.

Additionally, cut injuries are a risk since barbers use sharp tools to do their job. As a result, a customer may be accidentally cut. Children especially need a careful barber who is familiar with doing children’s cuts.

Poor or Incorrect Styling

Accidents happen, and sometimes the barber may color a client’s hair incorrectly, give a bad cut, or use too much hair chemical, causing injury. These accidents are sources of professional liability claims. Education and licensing should be kept up to date on all barbers to help prevent these sorts of liability claims.

Fire Damage

The barbershop’s building and the equipment inside are vulnerable to fire damage. Flammable chemicals, hair clippings, and faulty wiring (either in the building or from old hair dryers) are all things that could make a fire more damaging. Fire damage could lead to an extended shut down of the barbershop while repairs are made, resulting in a loss of income for the business.

Employee Injury

Employees at the barbershop are at risk of cuts from sharp tools and burns from hot equipment. Slips happen when the floor becomes cluttered or slippery. Illness and injuries can be prevented or reduced by keeping the workspace clean and clear of cords, water, or floor pads, which present a fall hazard.

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What Types of Insurance Should a Barbershop Consider?

Unfortunately, even with the best precautions in place, an accident can still happen. Insurance is the greatest way to protect the barbershop from the financial cost of an accident. Fortunately, when your risks are covered by insurance, you worry less about the economic stress that a claim would place on the business.

A barbershop should consider the following policies:

  • General liability insurance
  • Professional liability insurance
  • Property damage insurance
  • Workers’ compensation insurance

General Liability Insurance – Premises and Operations

General liability is often bundled as a package policy with other lines of insurance—such as a property damage policy. In the case of a barbershop, liability coverage for premises and operations provides coverage for incidents that happen on the property. This policy pays for property damage and bodily injury claims to a third party harmed on business property.

Some customer injuries include falling down a staircase, being cut by scissors, or suffering skin burns or damage from chemicals used. Because of these injuries, the customer may sue the barbershop to cover their medical payments. A general liability policy pays for medical expenses, legal fees, and settlements in these scenarios.

Since a barbershop has many customers coming on-site to receive services, it is essential to carry a general liability policy to cover on-site accidents.

Professional Liability Insurance

Professional liability differs from a general liability policy because it covers claims resulting from faulty or incorrect services. For example, a client may sue the business for applying the wrong hair color. Or perhaps, the barber shaved off hair when the client only wanted a trim. Also, misuse of chemicals can lead to hair breakage or hair loss.

The barbershop should ensure that its barbers keep updated on their licenses and education. Most professional liability claims are minor and typically settled out of court. However, they can result in the barbershop accumulating legal defense expenses.

A professional liability insurance policy will cover expenses from:

  • Negligence
  • Mistakes
  • Incorrect advice
  • Failing to fulfill a promised service

Commercial Property Damage Insurance

Typically bundled with general liability coverage, a commercial property insurance policy will cover the rebuilding cost of a lost structure and the reimbursement of lost or damaged items. Some covered hazards include fire, theft, vandalism, and wind and hail damage.

Fire is the most significant risk to a barbershop. A fire can start from faulty wiring or malfunctioning equipment. The barbershop can help prevent a fire by keeping equipment up to date, maintaining a clean environment, and storing flammable liquids away from potential fire starters.

Workers’ Compensation Insurance

Different states will vary on whether a workers’ compensation policy is required for small businesses. However, a barbershop with employees may want to purchase a workers’ compensation policy regardless. This policy covers medical payments, lost wages, rehabilitation costs, and disability benefits to an employee injured on the job.

Common injuries from cuts, burns, and falls happen in this industry. The injuries are often minor; however, the policy provides coverage for the employees while also protecting the business from lawsuits.

How Much Does Business Insurance Cost for a Barbershop?

The cost of barber insurance varies greatly depending on the size of your business and your amount of risk exposure. The best way to understand how much a complete policy will cost is to get quotes from different companies. Most companies will provide a quote online or over the phone.

When you receive a quote from an insurance company, they will ask you questions to determine the following:

  • Coverage limits – the amount of money the insurance policy would pay in a claim
  • Deductibles – the amount of money you would pay in a claim
  • Level of risk exposure – how likely a claim will happen

These three factors are what primarily affect your premium. For example, a barbershop with a large structure and many employees will have a higher coverage limit and premium (cost) than a small barbershop run and operated solely by the owner.

As you choose a policy package, make sure you have enough small business insurance coverage to protect your business and that the deductible amounts are reasonable. A well-rounded insurance package means you will have the assurance that the policy is there to help prevent a financial strain if an accident happens.

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