Beauty supply stores provide many beauty and hair products and accessories including cosmetics and tools, skin care products, nail polish and nail care products, hair products and styling tools, hair removal products, and similar products. Many beauty supply stores are open to the public, while others only sell to hair stylists, salons, and barber shops. Men, women, and teens frequently buy their beauty supplies from these types of stores, whether through a brick and mortar store or online.
As the owner of a beauty supplies store, you face a number of risks including injuries that could occur in your store from a spill on the ground, injury or illness caused by the products you sell, or general business risks all retail stores face.
Types of Beauty Supplies Store Insurance
To fully insure your beauty supplies store, consider the different risks you’re exposed to and aim for insurance policies to cover those risks. The following beauty supplies store insurance policies are a great place to start.
Premises liability, products liability, and completed operations are all covered with a general liability insurance policy. For example, if the products you sell cause an allergic reaction or damage a customer’s hair, general liability offers overage against the pending lawsuit. Premises liability is for accidents and damage caused while in your store.
If you use a vehicle for business purposes, such as making bank deposits or picking up merchandise to stock your beauty supplies store, you need business auto insurance. Business auto offers coverage from property or vehicle damage, bodily injury, vandalism and theft, depending on the type of business auto policy you choose.
Property insurance is an important business insurance policy for beauty supplies stores because it protects against damage to your property. You carry a variety of products and chemicals that are flammable and increase the risk of fire. Fire and other unexpected events could occur at any time, making property insurance important to purchase. Any damage caused by such events is covered with the insurance policy.
Business owner’s policy, also called a BOP, is a type of policy that packages different coverages in a single policy. It is ideal for beauty supply stores as you’re able to customize the insurance policy according to your expected risks. Possible coverages include buildings and contents, electronic data, employee dishonesty coverage, newly acquired and constructed buildings, and business income and extra income. For example, if you experience equipment breakdown, you may lose business income until the equipment is replaced. You can include business income and extra expense in your BOP and have benefits for the lost income.
It may not seem like it, but in a beauty supplies store, there is the risk of employees becoming injured or ill on the job. Employees who lift heavy boxes of merchandise to load on the shelves are at risk of back strain or other injuries, as are employees who clean up a spill of hair dying chemicals and get an allergic reaction. Cover these types of injuries with worker’s compensation insurance.
As the owner of a beauty supplies store, you need to think about all of your possible risks, including crimes. A variety of crimes can cause loss and damage to your business and assets including theft, shoplifting, vandalism, and theft or embezzlement from your employees. Shoplifting is a high risk due to the small size of your items that might be easier to steal such as nail polish or cosmetics. Preventing these crimes isn’t always possible, but crime insurance will help cover the loss resulting from the crime that was committed.
If you sell your beauty products online, you essentially have an e-commerce business. This type of business has its own set of risks, including data breaches from a resourceful hacker. Cyber liability insurance is a wise business insurance policy to have if you sell your beauty products online.
Protecting your beauty supplies store from these and other common risks should be top priority. Be sure to purchase the right kinds of business insurance for your beauty supplies store so you cover every potential risk.