As the COVID-19 pandemic continues, the future isn’t clear for many small businesses. But no matter what is going on in the world, one thing is certain: salons, spas and barber shops can manage their risks and protect their investments with the right insurance policy.
This is where professional liability insurance comes in. Professional liability insurance protects businesses when an employee error or accident causes harm to a client or customer. Some of the claims professional liability insurance covers (that general liability does not) include negligence, misrepresentation, violation of good faith and fair dealing and inaccurate advice.
A customer receiving a facial or microdermabrasion for the first time may have a bad reaction to the treatment that damages their skin. A regular client at a spa may receive a massage that inflames underlying back problems. A barber shop offering hair coloring treatments could use a product that causes an allergic reaction. Whether these incidents are a result of employee carelessness or not, a disgruntled client may not be satisfied with just an apology.
Should they file a claim against the business, it could result in a costly legal battle whether or not the business is ultimately held liable. And this is a battle that these businesses simply cannot afford without the right insurance, especially in the wake of COVID-19.
Most professional liability insurance policies must be in effect when the incident occurs. For salon, spa and barber shop owners, there’s no time to wait to get a professional liability insurance policy that will fit their business’s needs.
Having professional liability insurance helps cover litigation expenses and legal settlements. It is the last barrier protecting a business’s bottom line. Without it, offering services to your clients puts your business at risk. Aside from the reputational damage to your salon, spa or barber shop, the devastating costs of an expensive claim is enough to bring business to a grinding halt. It may be nearly impossible to recover from without the right coverage, especially as this business is trying to return to the “new normal.”
