Sunday, October 19, 2008

Defend Your Professional Beauty Salon from Potential Beast

In the 1930's, at the start of the Great Depression, thousands of people headed off on Route 66 for the "promised land" of California. And today, the state still is famous for its beautiful coastline, weather and people. Little wonder then, that beauty salons are successful and well-patronized in California.

Operating one of these beautifying businesses is still an exciting way to make a living, but it getting a little more dangerous too. Our society has gone a little sue-crazy, and with this tendency has come the need for buying better insurance coverage. Before you start buying your California beauty salon insurance though, there are several different kinds of coverage policies that you, as a business owner, need to understand.

General Liability Insurance
First off, we will review general liability insurance. This insurance covers incidents when your clients injure themselves on your premises. For example, they might slip on some water on the floor or trip over a bump in the parking lot and break a bone. As silly as it may seem that they can sue you for injuring themselves, you need to be prepared.

Property Coverage
Property coverage insurance is pretty self explanatory. It covers damage to your building or personal property like hair equipment, salon chairs and mirrors. Since California is known for its fires and earth quakes in addition to its beauty, property coverage would be a wise policy to buy.

Loss of Income
Loss of income coverage reimburses the policy holder for the loss of income caused by property damage. For example, if the salon burns down, you would want insurance not only to cover the cost of rebuilding but also to cover the salary you cannot earn while it is being rebuilt.

Professional Liability
Professional liability may be one of the most important kinds of coverage on your list. It helps cover your clients when you actually are at fault for causing cosmetology damage while performing your service. This probably won't be needed for giving someone a haircut they don't like because bad hair cuts grow out and solves themselves in a couple of weeks, but it would come in handy if someone was accidentally cut by a malfunctioning razor or something like that.

Depending on the services you offer at your salon, you may need different amounts of each kind of insurance. Now that you understand several different insurance types, find a company that offers both bargain packages and individualized plans. Many times, you can even get a quote from an insurance provider based specifically on your business needs.