Beauty Launchpad Magazine

DEC 2018

Beauty Launchpad is everything beauty for salons & stylists! Stay on top of the latest hair style trends and products for hair, skin, makeup and nails. Get hair color ideas, business advice, education tips and beauty industry news.

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38 | BEAUTY LAUNCHPAD | DECEMBER 2018 I t's no secret that stylists support their clients in countless ways. But pros need protection, too, which is why the smart ones play it safe by purchasing insurance. "Our average claim last year totaled $12,000, which is not a chunk of cash most hairdressers have lying around," informs Gianna Michalsen, content marketing specialist at Elite Beauty Insurance. "Conversely, policies cost between $100 to $300 per year." She identifi es fi ve potential situations that would make individual insurance a necessity worth having. Product Liability: You're shampooing a guest who leaves the salon and later experiences a severe scalp reaction that requires medical care. "Product liability covers litigation around products used during services, assuming the professional followed directions and protocol," Michalsen explains. (Items sold and taken home don't fall under this umbrella.) General Liability: You're cutting tresses that don't get immediately swept up off the fl oor, resulting in a slip and broken arm. "General liability compensates for any accident that may befall a client while in the stylist's care," says Michalsen. Professional Liability: While shaving a man's beard you nick his neck. "Mistakes or negligence are safeguarded as long as the pro has a current license and was practicing under state guidelines," Michalsen informs. Rental Damage: You step out for lunch and forget to unplug the curling iron, which burns a hole in your new counter. Says Michalsen, "Apart from natural disasters, all damage to premises are compensated." Stolen Equipment: Your expensive new kit goes missing while working off-site at a wedding? File a claim and get reimbursed. Rest Assured Live & Learn/Business Affairs GETTY IMAGES Savvy stylists safeguard their assets with insurance. —FRANCESCA MOISIN OCCURRENCE FORM: The industry-preferred standard, any claim fi led after a policy expires will still be covered so long as the incident took place while the policy was active. In other words: Your policy expired in November, and you didn't renew. Tomorrow, a client fi les a claim for scalp pain experienced during her color service in October. You're still covered—even though you've been without insurance for a month. CLAIMS-MADE: This policy must be active when the claim is fi led. If the policy expires at the end of December and a customer fi les a claim in January for scalp pain, you won't be covered—even if her color service happened in October while you still had insurance. "Approximately 30 percent of our 2017 claims wouldn't have been paid if we were a claims- made policy group," shares Michalsen. BUSINESS OWNER POLICY (BOP): An insurance package designed for a small business rather than the individual stylist. Coverage includes larger-scale damage, such as theft, computer fraud, fi re, and more. FINE PRINT Know the diff erence between policy types. Salon insurance protects your assets from myriad hazards, such as fi re.

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