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Company insurance is intended to safeguard the financial assets of a business owner and is a vital investment for a barbershop.


This article will discuss the primary insurance coverage for a barber shop, general liability insurance, as well as additional policies that are appropriate for this industry.

Barbershop General Liability Insurance

Every firm, regardless of sector, has risks that should be insured. General liability insurance is the most frequent and comprehensive form of coverage that company owners purchase.

General liability insurance covers the following risks:

Physical harm

Damage to property

Medical expenses

Legal defence and decision

Personal and commercial harm

While general liability insurance is not legally needed for companies, operating without it is exceedingly dangerous. If your company is sued, you might face costs in the hundreds of thousands of dollars (or more). The only way to avoid this sort of catastrophe from destroying your organisation is to have an adequate general liability insurance coverage in place to assist pay for these losses.

Situations That A Barber Shop’s General Liability Insurance May Cover

Example 1: A client staggers out of their chair and hits their chin on the counter. Medical treatment related with the event would most likely be covered by general liability insurance.

Example 2: A contractual hairdresser stumbles over materials left on a stairwell and falls down the stairs, causing many injuries. As long as the hairdresser was an independent contractor, general liability insurance would most likely cover the injuries. (If the hairdresser was an employee, the injuries would be covered by workers’ compensation.)

Example 3: While speaking with a new client, a hired hairdresser disparages the haircut they obtained elsewhere. The comments reach the other hairdresser, who feels they are unjustified and will harm the image of their competitor’s firm. They bring a defamation claim demanding restitution. The case would most likely be covered by general liability insurance.

Of course, this is not an entire list of risks covered by a general liability insurance policy, and certain situations may result in a specific peril not being covered. To minimise coverage gaps, it’s always better to speak with your agent about the terms of your policy.

General Liability Insurance Cost

The typical American barbershop pays between $350 and $750 per year for $1 million in general liability insurance.

The cost of your coverage will be determined by a number of variables. Among them are your:



Employees’ number

Per-occurrence restriction

The overall aggregate limit

You may be able to get general liability insurance at a lower cost if you buy it as part of a business owner’s policy (BOP) rather than as a separate policy. A business interruption policy (BOP) is a more complete option that covers numerous types of coverage, such as business interruption and property insurance.

Other Types of Coverage Required by Barber Shops

While general liability insurance is the most crucial, there are various different types of coverage to be aware of. Other forms of insurance that all barbershops should have are as follows

Insurance for Professional Liability

Your barber shop may need professional liability insurance as a company that employs trained individuals. This coverage protects against job faults and is offered to a wide range of professions.

When acquiring this coverage, ensure that you understand and explain to all hairdressers who are covered by your insurance. Coverage may be limited to employees exclusively, or it may include independent contractors. Whichever solution you choose, you should notify everyone so that they may make their own informed judgments about whether they need further security.

Coverage Options Available to Barber Shops

In addition to the insurance listed above, your barber shop may need a few more kinds of coverage based on particular features of your business. Some of them may not apply to you, so be sure to ask your agent whether policies are appropriate for your company.

Insurance for Commercial Property

If your barbershop owns its building, you should undoubtedly cover it with commercial property insurance. Coverage often includes goods found inside an insured structure, such as chairs, mirrors, and other fixtures.

Inform hairdressers about what your property insurance covers and does not cover. It may not cover hairdressers’ own equipment and supplies, and they will want to know whether they need to acquire insurance for their personal equipment.

Commercial property insurance is available as an add-on to a company owner’s coverage (BOP).

Insurance for Home-Based Businesses

If you operate a one-person barbershop from your house, home-based business insurance is preferable than commercial property insurance. Home-based business insurance often covers hazards that are not covered by standard homeowner’s insurance plans.

Home-based business insurance may be purchased via a BOP, or it is occasionally available as a rider to your homeowner’s insurance.

Additional Security Measures for Your Company

Although investing in company insurance is simple (and necessary), it should not be your first line of defence. Yes, insurance will reimburse your company for cash losses incurred as a result of an occurrence, but it is much preferable to avoid losses altogether.

With this in mind, here are a few steps you can take to better secure your company:

Make use of legally binding contracts and other business agreements. (We provide free templates for several of the most often used legal forms.)

To safeguard your personal assets, form a limited liability company (LLC) or a corporation. (To discover how to incorporate an LLC or company in your state, see our step-by-step tutorials.)

Keep your company licences up to date.

Streamline the internal procedures of your company. This will eliminate unneeded variables from routine activities and establish a secure, consistent environment in which to do business.

If your company is an LLC, you should check into LLC insurance.