Disclaimer:The information contained on this site/blog is provided for informational purposes only and should not be construed as legal advice on any subject matter.  You should not act or refrain from acting based on any content included herein without seeking legal or other professional advice. Performing cosmetology services that do not comply with State Board regulation or licensing requirements can result in adverse actions taken against your license and/or business. The contents of this blog contain general information and may not reflect current legal developments or address your situation. Vagaro disclaims any and all liability for actions you take or fail to take based on content on this blog.

Like any other industry, salons need to make sure their businesses are protected against claims with the right kind of insurance. Even with a loyal customer base and a staff of stylists committed to professional service following all the rules – it’s life, and accidents can happen. An accident shouldn’t cost you your livelihood, and when you’re working outside of the salon, your risk increases because of variables you can’t control. If your state allows you to work in an open-air salon, mobile salon, or to make salon house calls – here’s what you need to know about protecting your business!  

staff icon

Employees vs Booth Renters – Who Needs to Be Insured? 

Deciding on insurance upgrades to your salon coverage depend on whether your salon staff are employees or booth renters (independent contractors.) 

According to the IRS, the difference is:  

  • An employee is “…anyone who performs services for you… if you can control what will be done and how it will be done. This is so even when you give the employee freedom of action.”
  • An independent contractor is a worker where “…the payer has the right to control or direct only the result of the work and not what will be done and how it will be done.” 

For staff classified as employees, you take on more responsibility and liability for their house calls. Here, it is essential that your employees are covered under your insurance policies, and to make sure that there is a vehicle insurance policy that covers them when commuting from site to site.  

For booth renters, states require an affiliation with a licensed stationary business. Though booth renters are technically self-employed one-person salons, as the fixed location salon that they operate from, you can be held liable for house calls. For booth renters who make house calls, there are three ways to make sure your business is protected:  

  • Require in your rental agreement that booth renters carry liability insurance 
  • Add booth renters to your business liability policy as an additional insured party  
  • Find an insurance plan that extends coverage to booth renters 

3 Types of Insurance Salons Need for House Calls and Outdoor Services

Whether you’re in the salon, working outside, or making house calls in a mobile salon, there are three insurance plans every salon needs to carry.  

General Liability (Commercial General Liability/CGL). This insurance protects against work-related accidents and covers expenses related to claims of bodily injury, associated medical costs, personal injury, and property damage.  

Professional Liability (errors and omissions insurance/E&O). This kind of insurance covers the costs of negligence claims, such as lost wages or treatments gone wrong.  

Workers’ Compensation Insurance. This is required in almost every state for businesses that have employees. This type of insurance covers attorney’s fees, court costs, lost wages and settlements related to employee work-related injuries.  

Other Insurance You Might Need for Salon House Calls 

Most insurance companies don’t offer a specific salon, barbershop, or mobile salon insurance policy. Instead, your coverage is likely to be a combination of different policies, customized to suit your business needs. For many salons, general liability isn’t enough to cover everything, and what you need coverage for is subjective to the services you offer. Here are some additional options that are suited for salons, barbershops, mobile salons, or stylists (employed or booth renters) who offer house calls.  

  • Business Owners Policy (BOP): BOPs bundle general liability coverage with commercial property damage and can also be expanded to include other coverage your business requires. This is cost-effective for salons, because the bundled rate is lower than the cost of both policies purchased separately.    
  • Public Liability Insurance. This is a good option for businesses that don’t need or want extra coverages included under general liability insurance, who don’t make house calls, and who have a limited number of employees or booth renters.  
  • Business Equipment Coverage. This policy protects against loss, damage or theft or your professional equipment, inside the salon or on a house call. 
  • Inland Marine Insurance. No, you’re not on a boat! Despite the funny name, this insurance covers products, property and equipment being transported on land for business – like taking your equipment to a house call.  
  • Commercial Auto Insurance. This matters most if you have a business car that’s used to make house calls. If you have mobile salon unit, you’re required to carry commercial vehicle insurance. Your employees and booth renters may need to expand their personal auto insurance to include commercial insurance when traveling between appointments. 
  • Commercial Umbrella Insurance.  Unlike other policies, umbrella insurance doesn’t protect against a specific risk. Instead, it “fills the gaps” between different policies, and ensures that no matter what you need, you have the right coverage.  

 

 

Once you’ve got the right coverage, we’ve got the right tools to take your mobile salon on the road! In less than 10 minutes, you can enable our Outcall/Mobile Services feature and update your Vagaro.com business listing – and let customers know you’re ready for house calls! 

 


 

Disclaimer:The information contained on this site/blog is provided for informational purposes only and should not be construed as legal advice on any subject matter.  You should not act or refrain from acting based on any content included herein without seeking legal or other professional advice. Performing cosmetology services that do not comply with State Board regulation or licensing requirements can result in adverse actions taken against your license and/or business. The contents of this blog contain general information and may not reflect current legal developments or address your situation. Vagaro disclaims any and all liability for actions you take or fail to take based on content on this blog.

P.S. If you own or manage a business that charges rent and fees, learn more about how you can do that with Vagaro’s new Automatic Rent & Fees feature.

 


 

Header Image: Giorgio Trovato via Vagaro

Icons: Mia Montemayor via Vagaro