Every business that serves customers within a physical building should have some kind of liability insurance. For beauty salons, professional liability insurance may seem like a luxury item because the costs may cost 1 or 2 percent of your annual expenses. However, every hairdresser that works in a beauty salon needs professional liability insurance in case something happens.

What Is Professional Liability Insurance?

Professional liability insurance covers losses arising from a claim that the salon failed to perform services correctly. For example, if a curling iron or hair straightener gets too hot and burns a customer, insurance covers any damages caused by the failure. Although the physical object, or the curling iron, hurt the customer, it was a person?s accidental negligence that put the curling iron close enough to the person to cause the failure.

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Real-life cases of nail salons include customers getting infected nails that need medical treatment. One customer needed to have an amputation. What happens if too much hair dye seeps into someone?s scalp and an allergic reaction occurs? Who pays for the medical bills resulting from that service failure? If you don?t want that money coming out of your profits, you need insurance.

Facility Closures

If your salon closes for any reason due to someone?s actions in the salon, professional liability coverage may help with the costs of the shut down. Suppose a hairdresser leaves a curling iron plugged in and it starts a fire. The fire damages a few booths, and the water and fire damage takes a week to repair fully. The right professional liability insurance policy can step in to give you some cash to cover the loss of property and income.

Who Needs Professional Liability Insurance

Professional liability insurance should cover anyone who works in the facility. How this coverage works varies from person to