As a salon owner in Ontario, your business thrives on making people feel like the best versions of themselves. But working closely with others and providing physical treatments comes with a lot of responsibility.
There are liability issues that almost all business owners need to worry about – slip-and-fall injuries, property damage. Then there are the risks unique to your business, some of which would never enter another business owner’s mind.
Most salon owners know the following situation all too well: a client is burned during a wax and decides to sue. It’s happened to people you know, and it could happen to you. If it does, are you covered?
What is an Ontario Salon Insurance Policy?
Salon insurance for Ontario business owners is a policy package specially designed to cover the risks unique to your business, such as treatment-related injuries or failure to deliver a service as advertised.
A comprehensive salon insurance policy starts with four necessary policies:
- Commercial General Liability Insurance (CGL) protects salon owners against common claims related to third-party property damage or bodily injury as a result of your business operations. This coverage may include property damage that occurs during an off-site for a bridal party or the client who was burned during their wax.
- Medical Malpractice Insurance is a type of professional liability insurance that protects against claims alleging bodily injury, negligence, or property damage resulting from your professional activities. Medical malpractice insurance also protects your business if it’s named in a lawsuit against one of the independent practitioners working at your salon.
- Commercial Property Insurance provides coverage for loss or damage to the physical assets of your business, such as your salon property, as well as tools, equipment, technology, and furniture. For example, an electrical fire occurs and causes severe damage to your salon, causing you to close business while repairs are made. Commercial property insurance may cover the cost to repair the floors and replace the furniture. Such was the case for this Quinte hair salon that burned down, but luckily they had insurance to cover the cost of damages.
- Business Interruption Insurance covers income lost due to interrupted business operations. For example, a burst pipe floods your salon, causing you to close down while repairs are made. While commercial property would cover the costs of repairs, business interruption insurance would cover income lost during the time it takes to get the salon back up and running.
What Else Does Salon Insurance Include?
The salon industry and services they provide are varied. So are the insurance policies designed to protect them. While the fundamental policies you should consider are the same, there are several options for customizing your policy package to cover the more unique aspects of your business.
Some additional coverages to consider adding to your policy include:
- Cyber Liability Insurance covers damages associated with theft, corruption, and disruption of electronic data. It is a must-have if you keep records of your client’s financial information or use a point-of-sale system.
- Equipment Breakdown Insurance covers losses resulting from the sudden and accidental breakdown of equipment required to run your business. For example, your hair steamer breaks down and prevents you from being able to offer highlights. Equipment breakdown insurance may cover the cost of replacing the equipment.
- Product Liability Insurance against claims related to the products you use or sell at your spa. This coverage applies to products you source or labels yourself. Think allergic reactions, chemical burns – it easily could happen, and if it does, it’s better to be safe than sorry.
Together, these coverages create a comprehensive policy package. Are you looking for more? Speak with your broker to identify other ways to protect your salon.
I Offer Extra Services, Am I Covered By Ontario Salon Insurance?
There are many components of your business that make it unique, and you may be wondering if your liability insurance will cover them. Here are a few common features that salon owners should bring up with their broker to ensure they are covered at every angle:
- Alcoholic Beverages: If you offer your guests alcohol, consider adding Liquor Liability coverage to your spa insurance policy package. Liquor liability insurance protects against alcohol-related claims. For example, a client has a few too many glasses of complimentary champagne during their pedicure and stumble on their way to the nail polish dryer. As the fall is alcohol-related, it would not be covered by CGL. Instead, it would be considered a liquor liability issue.
- Offer Mobile Salon Services: Your insurance will follow you throughout Ontario. If you offer mobile salon services, such as onsite hair and makeup application, you will be covered wherever you go, so long as you have adequate coverage. The same is true if mobile services are not your primary offering, but still something you offer. Your broker can help you understand the limitations and restrictions of your insurance policy.
- Employ Independent Practitioners: Your salon liability insurance will cover full-time employees of your business. While you can add independent practitioners to your policy, your premium applies to all employees, so it decreases your coverage. If you have a hairstylist who rents a chair twice a week, it is wise to encourage them to have insurance coverage of their own.
How Much Does Salon Insurance Cost in Ontario?
Much like the industry and types of coverage, the cost of liability insurance for salon insurance in Ontario also varies and depends on several factors. When determining the value of your insurance premium, the location of your business, services offered, and annual revenue are taken into consideration.
We’ve partnered with over fifty of Canada’s largest insurance carriers to offer you the most exclusive rates on salon liability insurance.
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