Lotion, soap, hair care products, makeup, skin care products, spray tan, waxing supplies, nail polish, hair styling products, and fragrances are just some of the products cosmetics stores carry for women and men. Many cosmetics stores extend to toiletries as well like toothpaste, deodorant, body soap, and mouthwash. Due to the nature of this business, cosmetics stores owners need to protect their business from risks ranging from accidents in the store to allergic reactions to products sold. If you plan to operate a cosmetics store, don’t forget about cosmetics store insurance to protect your various business risks.
Types of Cosmetics Store Insurance
When you think of business insurance, you might just think of liability insurance, but there are actually many different types of cosmetics store insurance policies to choose from.
General liability insurance is considered a broad policy since it includes completed operations, products liability, and premises liability. For example, if you sell a perfume that gives a customer an allergic reaction, she could sue you for damages; this lawsuit is covered under products liability. Completed operations is similar, except it covers damages from services you provide, such as offering makeup application that later gives a customer a rash. Premises liability is for accidents that occur in your store, like a customer tripping over a box of supplies left in the aisle.
Even though you have carefully selected the cosmetics, perfume, and other merchandise sold in your cosmetics store, doesn’t mean you can avoid all mishaps. A number of things can occur with the products you sell, which may cause harm or damage to your customers. Since you sold the products, your company can be sued for these damages. If you have products liability insurance, legal costs and additional financial costs are protected by the policy.
If you or your employees drive a company vehicle for business errands or to make deliveries, it is essential that you have a business auto insurance policy. Perhaps your accountant is making a nightly bank deposit and gets into an accident on the way. Damage to your company vehicle, other vehicles involved and personal injury is covered by the insurance policy. Many business auto policies also include other coverages like theft or vandalism.
Many cosmetics stores sell their products online as well as in physical stores, so if your cosmetic store does too, you need to consider extra security measures. While physical stores will have locks on the doors and surveillance equipment, your online store should have protection as well. One way to protect your online store’s security is with cyber liability insurance. This type of insurance policy is in place if your online store should get hacked into, with credit card information, personal information, or business information stolen. There are many different ways your business can be affected by a cyber crime, all of which can be a covered with cyber liability insurance.
Since you sell quite a bit of chemicals and products that might be flammable, you have a high risk of fire. You also run the risk of your cosmetics and other products being destroyed from heat or smoke from the fire. To protect your cosmetics store from these and other unexpected events, purchase a business property policy. This insurance policy is going to cover the expense of repairing or replacing anything damaged during a fire or natural disaster.
Most states in the US require worker’s compensation for employees, but this isn’t the only reason you should get it. Any time an employee gets a work-related injury or illness, worker’s comp will cover their medical costs which can include diagnosis, treatment, and follow-up appointments. It also covers missing income while they recover from the illness or injury. For a cosmetics store, this could mean an employee cutting their hand on a box cutter or coming into contact with perfume that caused an allergic reaction. Regardless of the injury or illness, worker’s compensation will protect your employee and your company.
Crime insurance is a policy you don’t want but might eventually require. This insurance policy will protect against customers and passersby who commit crimes such as theft, shoplifting or vandalism, as well as employee dishonesty acts. When hiring employees, you should perform extensive background checks and verify references, but this doesn’t prevent a crime from occurring. By getting crime insurance for your cosmetic store, you have the added protection from theft and shoplifting.
After working hard to open up your cosmetics store, don’t forget about the risks involved. Even risks you don’t think are likely should be protected because the unexpected happens every day. With cosmetics store insurance, you can feel relief knowing that your business assets are fully protected.