Coverage for the Self-Owned Business: Understanding the Benefits of a Business Owner’s Policy

Coverage for the Self-Owned Business

The current economic climate has presented challenges and opportunities that have resulted in many hairdressers and beauticians seizing the chance to start their own businesses or turn to gig-work. The appeal of working for oneself is clear: Strategic control, financial freedom, being selective with prospective clients and even setting one’s own hours.

Being an entrepreneur presents risks as well. If a client slips and falls on the premises, the owner is responsible for any injuries or legal action taken against the salon or spa. Similarly, if a client or staff member’s property is damaged while at the salon or spa, the owner could be held liable. When it comes to owning one’s own business, any damages to the property, whether from instances of fire, theft, or other weather-related disasters, also fall on the owner to fix.

Finding and selecting the right insurance coverage is a complex, yet crucial, challenge for a new or small business owner. Without the proper coverage, a small-business owner could overpay for unnecessary coverage. Worse, they could be exposed to damaging risks, putting the entire venture, and their personal assets, in jeopardy.

However, beauty entrepreneurs or freelance stylists who branch out on their own may not need the types of extensive coverage held by their former large spa or salon employers. A more affordable and convenient alternative for solopreneurs or freelancer stylists exposed to minimal, general risks is a business owner’s policy (BOP). A BOP combines general liability and property coverages under one policy, negating the need to purchase several more expensive policies typically only necessary for larger organizations with multiple employees and/or locations.

A BOP policy can be ideal for a one- or two-person salon or freelance stylist. They allow for small salons and spas to have the right protection at a cost most start-ups can more easily afford. For instance, a freelance stylist or a new one-person salon may not need worker’s compensation coverage. This is where a BOP policy fits, providing general coverage at a low price. Additionally, a solo stylist is more likely to provide services at remote locations like a client’s home. A properly written BOP can provide liability coverage if damage or injury occurs at a remote location.

When a small salon or spa becomes popular and outgrows the protection of a BOP, it can graduate to a more extensive general liability policy. Working with a reliable agent or broker, today’s salon and spa entrepreneurs can better monitor and adjust their risk profile and protection as they grow their success.

Kathy Lopez, Account Manager for SASSI, the Salon and Spa Specialty Insurance program at Brownyard Group. She can be reached at

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