All You Need to Know About Barbers Insurance
Barbers insurance is a type of insurance you buy to protect a barbers practice or shop. A barbers business faces many potential risks, such as injury to someone else when you’re in someone’s home when the customer injures themselves or damages their property with an employee. You can also face legal expenses and compensation payouts for damage you cause while in the clients’ homes. Because the potential costs of claims are high, barbers insurance is considered mandatory in most jurisdictions to protect the barber from insolvency in the case of a severe accident.
Barbers insurance will typically provide options to include:
- Property: damages caused to another person or their property (for example, if your haircutting scissors slip and cut them) coverage also includes personal liability for medical expenses if someone hurts themselves on broken glass in your shop.
- Injury: injuries to others due to an accident on your premises (for example, if someone slips and falls on water that leaked from your water cooler).
- Medical: medical payments to a third party injured because of negligence.
- General liability: protection from claims made by clients against your business for physical injury, mental anguish, property damages and wrongful death.
- Damage to Premises: This coverage protects your premises from accidental damage, including fire, windstorm, theft and vandalism. It also offers coverage if someone accidentally causes damage while at your establishment.
Insurance plans offered to employers of barbers will also include:
- Workers compensation: benefits to employees who become disabled or have their medical expenses paid by the policy.
- Professional liability: protection from claims made by clients for physical injury, mental anguish, property damages and wrongful death. This protects you from a potential lawsuit if you cause injury through your work as a barber or offer professional advice that causes harm. You will need to pay a deductible if any claim is made under this section of the policy. The typical deductible is about 10% of the limit for an individual claim
What is Liability Insurance?
Liability insurance is a type of insurance that covers your legal expenses if you get sued. It covers costs involved in defending yourself, plus damages or compensation awarded against you if you lose. Liability insurance is available in two forms: professional indemnity insurance (PII) and public liability insurance (PLI). Professional indemnity insurance (PII) is insurance against financial losses arising from negligence or poor workmanship.
It is an agreement between the barber and their insurer to provide financial help should they be involved in a claim that results in the courts awarding someone financial compensation. A successful claimant will usually receive compensation for monetary losses, plus pain and suffering (sometimes referred to as “general damages”), any lost earnings they may have suffered, plus expenses related to their injury or illness. They can also receive punitive damages if it can be proven that the barber or hairdresser acted maliciously or with reckless disregard for the safety of others.
What Level of Cover Will You Need?
The level of cover will depend upon what is required by the barber’s shop’s jurisdiction and the size and operations of the business. In some areas, barbers must take out a minimum level of PII and PLI. Most barbers have general liability insurance, most have public liability insurance, and fewer have professional indemnity insurance. A smaller proportion has workers’ compensation or property damage cover.
For example, in the UK, barbers are required to have a licence from their local council or authority. This jurisdiction sets the level of insurance required to obtain or maintain this licence. Barbers and hairdressers in the UK must take out public liability (PLI) insurance and professional indemnity (PII) insurance to practice legally. This is usually taken out through an insurer called a Professional Indemnity Underwriter (PIIU). All but the smallest businesses must take out such policies before they can officially trade.
In New York State, anyone who performs haircuts must have a valid certificate issued by the state’s education department to be eligible for insurance. In California, barbers are required to have workers’ compensation insurance. They must also have liability insurance. The amount varies depending on the number of employees that are at the shop, as well as any extras they operate under.
In Australia, barbers must be insured to practice. Insurance requirements vary depending on state and city laws and regulations. In New South Wales, anyone who cuts hair must carry workers’ compensation insurance. Additionally, they must take out both general liability insurance and professional indemnity insurance (PII). General liability coverage can be taken out as an additional layer to the PII cover.
To Summarise All You Need to Know About Barbers Insurance
Many barbers are self-employed. In contrast to salaried workers, self-employed barbers do not have the protection of a legal employer to help defend against a claim. In many jurisdictions, “voluntary” or optional insurance against civil claims for damages has been held to be an essential part of the right to practice a profession.
It is usually required by law to gain/maintain professional registration or certification. In most cases, public liability insurance is mandatory for barbers who want to gain/maintain a license or registration from their local licensing authority. Find out more about barbers insurance here.
Other useful links about business insurance:
Business Contents Insurance
Business Building Insurance
Employers’ Liability Insurance
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