“If you don’t have professional liability insurance, you’re taking a risk that could cost you everything,” wrote Lauren Spalapatek for Modern Salon. “It’s not just responsible business sense to have insurance; it’s part of being an ethical professional in the service industry.”
If you’re running your own small business or working in the gig economy, you may have heard that getting insurance is a good idea. We believe it’s not just a good idea, but a necessary component to running a successful small business. Here’s why.
Liability insurance protects you, as a provider of a service, from legal action your clients may take. If someone is not happy with a service, you don’t have to worry about hiring a lawyer and going to court.
You may think, “Who would sue me over a haircut?” Even though your services may be top-notch, you don’t know what type of client is walking into your door every time you have a new appointment set up. And, without insurance, you have zero protection against the unknown.
“The average claim in the beauty industry is $5,500,” wrote the team at Elite Beauty Society. They point out that, if you’re not insured, you would pay all of that out of pocket. “It only takes a single lawsuit or claim to bankrupt you,” they wrote.
Cosmetologists can be sued for negligence and other personal injury claims. Clients can even sue you for things that don’t relate to your services. For example, if a client slips and falls in your shop, they can sue you for not keeping your floors clean.
“A potential mishap could easily wipe out the assets of a small business,” wrote Devra Gartenstein in an article for Chron, a website about running your small business. The problem with accidents is that they are accidents: you never know when one’s around the corner.
Cosmetologists are often sued for subjective reasons. If a client believes you did not execute exactly what they wanted and this caused some kind of injury, they can sue you for Failure to Use as Directed. You can be sued for not performing the treatment in the proper way and therefore causing some kind of injury, under Failure to Carefully and Diligently Perform the Treatment. Lastly, you can even be sued for selecting the wrong form of treatment to give a client.
You can be sued for many things that are largely out of your control, too. If one of your tools, like a hair straightener, malfunctions and burns a client, they can sue you. If your client has an allergic reaction to a product, they can sue you. If your client falls while getting out of the chair, they can sue you. All of these situations are unpredictable and impossible to protect against unless you have insurance.
Here’s a list of what you can be sued for, compiled by the website Injury Claim Coach.
If taken far enough, any of these events could cause significant financial damage to you and your business. “All it takes is one tiny slip with the scissors, one slip on the floor, or the mistake of leaving those chemicals on a client’s head for just a little too long to create serious legal claims against hairdressers,” wrote the team at Hiscox, a small business insurer.
Liability insurance protects you in these situations because it covers any damages that you might have to pay in the case of a lawsuit.
Even though you’re not giving someone open heart surgery, you’re still working with dangerous tools every day. Sharp tools like scissors and nail care instruments and hot tools like wax and blow dryers can cause serious damage, even if you’re licensed and have years of experience under your belt.
As a small business owner or solopreneur, it can be very difficult to get a good insurance policy without paying a sky-high price. And getting a cheap policy won’t do you much good when it comes to coverage.
That’s why, with your KLYP Prime subscription, you get everything you need to practice your business safely. Less time spent searching for insurance agents and comparing policies means more time to focus on your clients and do what you love.