Barbershop – Canadian Business Insurance Recommendations
Barbershops are highly known for local hangouts in a metropolis, urban, and rural areas. With this said, barbershops are also known for their many offerings, such as haircuts, scalp massages, razor shaves, and hot towel treatments. All of these procedures are performed hourly in most Canadian barbershops. While owners are thrilled to be packed, there are risks involved in dealing with wall-to-wall customers. The most common risk reported by barber shops across the country is a mishap.
Unfortunately, a mishap can occur at the drop of a hat. Regardless of how many safety meetings you have each year, the number of barbers you hire, or the hours you spend overseeing your employees, the risk of mishap never goes away. Like risks, there are protections you can put into place to protect your barbershop from financial devastation if ever you are facing a lawsuit. This protection is no other than business insurance. What is business insurance? How can it protect my barbershop and employees from financial ruin related to client lawsuits and claims? Find the answer to these questions and a list of policy recommendations in the article below.
Business Owner’s Policy – A Requirement For All Licensed Barber Shops In Canada
It is not unusual for barbers to set out on their own at some point in their careers. Once you build your skills and reputation, it is time to break away from your employer and set up shop somewhere else. Barber Shops offer a service that is high-demand in most territories and provinces. Not very many people are keen on cutting their hair, shaving their face with a straight razor, and massaging their scalp, all the services offered by barbershops.
If you offer services that Canadian consumers want, they will come. Your barbershop will be filled to the brim every day of the week if you play your cards right. But, first, you must obtain a Business Owner’s Policy (BOP).
BOP is a type of insurance that covers the following:
- Third-party accident claims and lawsuits
- Client property damage claims and lawsuits
- Business property damage claims related to theft, fire, and natural disaster
A BOP will protect your barbershop from financial ruin if ever you are sued by a customer. Lawsuits are notorious for their financial devastation. With BOP, your barbershop will be protected 24 hours a day, seven days a week.
General Liability Insurance – Barbershops Should Have In Their Insurance Portfolio
General Liability Insurance (GLI) is a policy recommendation for Canadian barbershops. This particular policy will play a major role in protecting barbershops from financial loss associated with third-party claims and lawsuits. What exactly does GLI cover and how much are the premiums? First and foremost, you need to know the coverage of a GLI policy.
GLI covers the following:
- Third-party accident claims and lawsuits
- Customer property damage claims and lawsuits
- Lawsuits associated with slander and libel allegations
With GLI on your side, your barbershop will only be responsible for a fraction of third-party property damage or accident lawsuit settlement. If you have previously ruled out GLI because you believe the premiums are unaffordable, you should definitely reconsider. GLI policies are customized to meet or exceed a barbershop’s insurance needs. You are never forced to pay more than the minimum, regardless of your insurance budget.
In some territories and provinces, GLI is a legal requirement. Contact FCAC to determine if you are required to obtain this policy.
Professional Liability Insurance – Financial Loss Protection Against Negligent Allegations
Canadian consumers rely on barbershops for hair trims, cuts, perms, dyes, and straight razor shaves. All of these services are in high demand all across the country. Some barbershops have reported high customer volumes daily. With every service comes risks. For example, a client requested a hot towel massage only to receive a minor first-degree burn on the jawline. Of course, the customer was very dissatisfied with the service he was provided. And, nothing the barber could do would console the client, which decided to file a lawsuit against the barbershop. This is just one example of the mishaps that take place in barbershops in Canada daily.
While barbershops spend weeks training their barbers, mishaps are always on the back of their minds. With professional liability insurance, a third-party accident or negligent claim will not be as financially devastating. In fact, your policy may cover the full court judgment. If it does not cover the full judgment, it will cover part of it.
What is covered under a professional liability insurance policy?
- Negligent lawsuits and claims
- Lawsuits and claims related to oversights and errors
- Claims and lawsuits associated with poor work performance allegations
All of the above are always a possibility for a barbershop. Whether you employ a single worker or hundreds of workers, the risks are all the same. Of course, more workers come with more risks but they are risks nonetheless. A professional liability insurance aka E&O plan will cover all or most of the above claims and lawsuits.
Worker’s Compensation Insurance – Protects Canadian Workers And Licensed Barbershops
Worker’s compensation insurance is part of a federal mandate that requires all Canadian-based barbershops to be covered. However, this only applies to barbershops with employees. If you do not have any workers, you may or may not be required to carry worker’s compensation insurance. What type of protection does a worker’s compensation insurance offer? Does worker’s compensation really protect workers and businesses?
First and foremost, it is crucial to know the protections offered by this policy. In this case, barbershops do not have an option of whether or not to purchase worker’s compensation coverage. If you did have an option, would you carry this insurance coverage? Once you know the ins and outs of worker’s compensation, you would probably say “yes” without hesitation. For barbers who know little to nothing about worker’s compensation, the extra expense would feel more like a burden than a benefit. Fortunately, this is not the case with this particular policy.
Worker’s compensation insurance covers the following:
- Legal expenses related to a workplace injury lawsuit
- An injured worker’s lost wages due to a workplace injury
- An injured worker’s medical expenses
So, you see, worker’s compensation insurance offers protection for those on both sides of the aisle. It covers a barbershop’s legal expenses related to a workplace accident lawsuit. It also covers the injured worker’s missed wages, medical expenses, and rehabilitation costs.
Worker’s compensation covers up to two years. For example, a worker involved in a workplace accident is unable to return to work for two years. Once the worker’s compensation claim is approved, the injured worker immediately begins receiving lost wage payments. The payments continue from this point on for two years. At this point, the injured worker will return to work or apply for government disability insurance.
If your barbershop is facing a workplace injury lawsuit, you must be prepared for the court date in advance. With worker’s compensation insurance coverage, you will not be required to pay out of pocket for your defense expenses.
Contact ProfessionalsCoverage Today!
Personal Care and Beauty Business insurance is complicated. This is especially true for the inexperienced barbershop owner and worker. The Canadian government requires all licensed barbershops with employees to carry worker’s compensation. With or without employees, barbershops are also required to carry business owner’s and/or general liability insurance policies. The risk exposures for barbershops range from oversights to mishaps to negligence, which is where business insurance comes into play.
To learn more contact ProfessionalsCoverage. If you are looking for a high-quality, customized business insurance policy, ProfessionalsCoverage is here to help. These barbershop business insurance specialists are only a phone call away.
Need coverage in effect? Compare the market!
Other Types of Personal Care and Beauty Insurance We Provide:
If your business is not mentioned below, have no worries. Our insurance markets can provide liability coverage for the majority of personal care and beauty industries.