Liability Insurance

Business Income Coverage

Business income coverage, or business interruption coverage, is designed to minimize your risk in the event of a loss. It can protect your business against reduced income (and extra expenses) that result from a covered cause of loss to buildings or business personal property. It also allows the salon to retain key employees by maintaining salaries and benefits, encourages prompt settlement of building and business personal property losses, helps the salon owner retain customers and can help restore the salon to the same position it was in before the loss occurred.

"Loss of income" refers to the suspension of your operations by direct loss or damage. "Extra expense" refers to any extraordinary expenses you incur during the period of restoration, which begins with the date of the loss resulting from any coverage cause. There are many forms of business income coverage and this should be considered a must-have in your insurance portfolio. Your insurance agent can recommend the best way to protect your income after a covered cause of loss.

Employee Dishonesty Coverage

As an owner it is crucial for you to protect your business, but many times employee dishonesty can be hard to detect. As a business owner, you need to be able to rely on your employees to be loyal, trustworthy, honest and dedicated; however, temptation, greed, social and financial pressure can drive many to do dishonest acts. Forging and hiding receipts, pocketing money and stealing merchandise are common occurrences. It is paramount for you to pay attention to irregular behaviors, such as working unusual hours, poor performance, constant complaining and defensive behavior. If you aren’t managing the salon yourself, you might want to drop by unannounced at various hours and keep track of merchandise and receipts.

Salon owners need to be aware of the risks and understand the benefits of appropriate insurance coverage. Know who you are hiring; spend the extra time to do background checks and verify job references. In addition, you can add employee dishonesty insurance to your current policy, if not already included. This coverage protects you from employees that act unethically for the purpose of personal gain. However, remember that employee dishonesty claims must be committed with manifest intent—basically, the loss must be the result of an unethical act the employee knowingly committed in order to gain something. Be aware that if you cannot prove manifest intent, your claim may not be covered.

Money And Securities Coverage

Money and securities coverage can protect your cash and securities, up to the limits you purchase, at your covered location, and also can provide coverage while you are on the way to make a bank deposit.

Glass And Sign Coverage

Often, a salon owner is responsible for damages to the building. Be sure to refer to your lease for your responsibilities towards damage to glass and signs. Also make sure that your sign is covered to avoid the peril of wind damage—wind is the most common cause of loss—and be aware of the deductibles on this coverage.

Workers Compensation

According to law, an employee is someone hired to perform services under the direction and control of another person or company, known as the employer. Each state has its own definition of what constitutes an employee, so check with your state to be sure of any specifics. Workers compensation is designed to ensure that employees who are injured or disabled on the job are compensated properly, negating the need for related lawsuits. It also provides benefits for dependents of workers killed by work-related accidents or illness. Some laws limit the amount an injured employee can recover and eliminate co-worker liability in most cases.