What Kind of Insurance Do Barbers Need?
You’re snipping, clipping, and cutting all day, but owning a barber shop is more than just delivering great haircuts. From slip-and-fall accidents to equipment damage or customer complaints, your barbering business faces a variety of risks every day.
Business insurance coverage financially protects your barber shop from lawsuits, mishaps, and property damage.
Western Financial Group, a 100% Canadian company, can help you navigate business, car, and home insurance during this period of economic uncertainty.
Why you need barber shop insurance
Barber shop operators deal with the public daily, use sharp tools and electrical equipment, and usually operate out of physical storefronts, all of which bring potential risks. Barber shop insurance protects your business from costly legal issues, unexpected events, and property damage.
Benefits of insurance for barber shops:
- Shields your business from lawsuits or claims
- Covers injuries or accidents on the premises
- Replaces damaged or stolen equipment
- May be required for landlord lease agreements
Did you know? Commercial general liability insurance coverage is the cornerstone of your barbershop insurance
What insurance do barber shops need?
Commercial general liability (CGL) insurance
CGL insurance protects your barbering business if a third party (customer/client) suffers bodily injury or property damage at your shop. For example, if a you cause injury to a client during a haircut and were sued or a customer slips on a wet floor, this insurance helps cover legal fees in both cases.
Typical coverage:
- Property damage
- Bodily injury
- Medical costs
- Legal defense costs
Professional liability insurance
Professional liability (also called errors and omissions) insurance covers claims related to mistakes or negligence during service. For example, if a client sues over a haircut that caused injury or allergic reaction, this insurance can help cover legal fees.
Cyber liability insurance
Cyber liability insurance is recommended if you have digital contracts and payments.
Cyber liability insurance will help protect your barber business financially in case of a cyber-attack. Depending on the size of the data breach and the information that was taken, the customers who are affected can hold you liable and sue you for damages. You may also have to pay for notification expenses to inform customers affected by a breach. That’s how cyber insurance can protect you financially.
At Western Financial Group, we help Canadian business owners understand what their insurance covers and offer expert advice to make sure you’re protected for unexpected events.
Commercial property insurance
Commercial property insurance can help keep you protected from property losses, such as theft, fire, or vandalism. It also protects your business in case of a windstorm or other severe weather but check the details of your policy. You can also add earthquake insurance, sewer backup, or flood coverage extensions to your commercial property insurance.
You’ll need to do an inventory of all your business property to determine how much commercial property insurance you will need. Your Western business insurance expert can help you with this.
How can small business owners save on their insurance with Western?
Western helps business owners save on their insurance with the following:
- Bundle and save: They’re generally available when you bundle liability, commercial auto, and property insurance.
- Multiple quotes to suit your needs: Western is a national insurance broker that partners with Canada’s leading insurers. We’ll get you multiple business insurance quotes to suit your needs and to help you save money.
- Cost: Depends on factors such as services provided, location and size, deductibles, revenue, and any past claims
What other insurance do barber shops need?
Tools and equipment insurance
It protects your barber business’s tools and equipment. If your tools or equipment are stolen, lost, or damaged, this policy may cover the repair or replacement costs.
Anything valued at less than $1,500 is considered a tool and anything above that limit is considered equipment.
Business interruption insurance
This coverage supports you when your HVAC business can’t operate due to a covered loss.
There are a number of losses that can force your HVAC business to shut down. Some examples include:
- Damage to your equipment from fire or vandalism
- A major reduction in revenue due to a client/supplier facing losses of their own
- A disruption in your supply chain
Business interruption insurance can help with expenses such as:
- Payroll
- Rent
- Utilities
- Property taxes
- Alarm monitoring
- Relocation of your business
Let Western Financial Group help you protect your small business with commercial insurance
Final thoughts
Your barber business needs commercial insurance to protect you from the daily risks that you can face. Know that barber insurance helps protects you from financial loss due to lawsuits and third-party accidents, property damage, and severe weather.
Why Western? We’ll get you the best business insurance and help you save money. We’re 100% Canadian!
FAQs about barber shop insurance
How much does barber insurance cost?
Insurance for barbers depend on several factors:
- Location and size of your shop
- Number of employees
- Annual revenue
- Value of your equipment
- Claims history
- Types and limits of coverage
Small barber shops: $500 – $1,500/year for basic coverage. With employees or high-end equipment: $2,000 – $4,000/year or more.
Ask a Western Financial Group business insurance expert about barber insurance.
Is insurance required to open a barber shop?
It’s not mandatory in Canada, but it is recommended to protect yourself against lawsuits and property damage. Commercial landlords may demand proof of insurance to lease commercial space.
What if I’m a self-employed barber renting a chair?
Even if you rent a booth or chair at a barber shop, you’re still liable for your own clients and equipment. At minimum, you should carry general liability and professional liability insurance. Some chair rental agreements may also require insurance.
What does general liability NOT cover?
General liability won’t cover employee injuries, damage to your own property, or professional mistakes (like a botched haircut). For those, you need workers’ comp, commercial property insurance, and professional liability insurance.
How can I save money on barber shop insurance?
- Bundle policies, if possible
- Increase your deductible
- Maintain a safe, claim-free business
- Shop around and compare quotes from multiple insurance providers
- Only buy the coverage you need
Do I need insurance if I work from home or mobile?
Yes. Even if you run your barber business from home or operate as a mobile barber, accidents and claims can still happen. You’ll need at least general and professional liability insurance, and possibly coverage for your equipment in transit.
What happens if I don’t have insurance?
Without insurance, you’re personally liable for any injuries, damage, or lawsuits. One major incident, like a customer injury or shop fire, could bankrupt your business.
