Business Insurance Policy Recommendations
Nail Salons and technicians face many risks daily. One particular risk is mishaps. As much as you try, a mishap can occur in your salon at the drop of a hat. This mishap could lead to a third-party claim or even worse a lawsuit. While mishaps are impossible to avoid, there are protections you can put into place to soften the blow in the event you are sued. This protection is business insurance, which comprises a variety of policies, including general liability, business owners, professional liability, and commercial auto. All of these policies are highly recommended for all Canadian nail salons and technicians.
Professional Liability Insurance – A Must For Licensed Nail Salons
This policy specifically protects nail salons and technicians from financial loss associated with third-party lawsuits associated with mishaps. Unfortunately, there is no guarantee you and your workers will never have a mishap that could lead to a dissatisfied client. For example, a nail technician nicks a client finger during a manicure. The nick was only minor but it caused the client pain and suffering. At least, this is what the client claims. Regardless, you should expect a claim or lawsuit to be filed against your company.
Professional liability insurance is a must for Canadian nail salons and technicians. This policy covers expenses associated with third-party lawsuits. What is covered under a professional liability insurance policy?
- Third-party claims related to poor results
- Third-party claims related to bodily injury
- Missed appointments
You never know what to expect from your employees from one day to the next. With this coverage, your company will be partially or fully protected from financial loss in the event you are facing a third-party lawsuit or claim.
Business Owner’s Policy – A Mandated Business Insurance Policy
As a licensed, active nail salon in Canada, you are required to obtain and carry a business owner’s policy. Your personal care insurance policy specifically protects against the financial loss associated with third-party claims and lawsuits. For nail salons that offer in-home services, this insurance is a must. It is also part of a federal mandate that all Canadian nail salons be covered under a business owner’s policy.
Why is a business owner’s policy so important for Canadian consumers and nail salons? First and foremost, the policy protects both the consumer and business owner. For example, a nail technician spilled a bottle of fingernail policy remover onto a client’s $200 purse. The acetone in the nail policy remover caused permanent damage to the customer’s handbag. Who do you think is responsible for this damage? The nail salon owner, of course.
The damage could lead to a disgruntled customer, resulting in a claim or lawsuit being filed against your nail salon. What options do nail salon owners have in these cases? Well, it really depends on whether they are covered under a business owner’s policy. If so, the nail salon owner must immediately file a claim against their policy. This will initiate an investigation to determine if the client has a case against the nail salon.
If the claim is determined to be legit, the nail salon’s business owner’s policy will cover most or all of the damage. The same thing goes if the mishap leads to a bodily injury, minor or severe. What other mishaps are covered under this policy?
- Third-party claims associated with bodily injury
- First-party claims related to business property damage
- Third-party claims related to property damage
While a business owner’s insurance is a federal requirement, it can prove to be helpful when facing a third-party claim or lawsuit. It can also help cover all or part of a first-party claim if your business sustains damage during a fire, theft, or natural disaster.
General Liability Insurance – GLI Covers Third-Party Property Damage Claims
General Liability Insurance (GLI) is a must-have policy for licensed Canadian nail salons and technicians. This policy plays a major role in claims and lawsuits associated with customer property damage and slander. Again, it is impossible to avoid all risks. Two risks that are very common for nail salons are slips and falls. For example, a client walking to the shampoo basin slips and falls, leading to a laceration on the forehead.
What is the first step the nail salon owner should take when this occurs? First and foremost, it is crucial to initiate the claim process. This involves filing a claim against your GLI policy. This in turn will jumpstart an investigation into the claim to determine its legitimacy. Since you and/or your workers witnessed the accident, you will be required to submit statements along with the claim.
GLI protects against the financial loss associated with the following:
- Third-party accident claims
- Third-party property damage claims
- Third-party lawsuits associated with slander and libel allegations
Nail salons are notorious for mishaps, including slips, falls, spills, and bumps. They are also notorious for mishaps that leave customers dissatisfied. Regardless of how often you conduct employee safety training courses, mishaps are going to happen. With GLI coverage on your side, the damage caused by third-party claims and lawsuits will not be as severe as if you are uncovered at the time of a mishap.
Worker’s Compensation Insurance – A Federal Mandate For All Canadian Nail Salons And Technicians
As an owner of a licensed nail salon in Canada, you are required to be familiar with worker’s compensation insurance. This policy is more diverse than some business insurance plans, as it protects workers and nail salons from devastating financial losses associated with workplace injuries. While nail salons must take care in protecting their clients, they are also responsible for their workers. Worker’s compensation insurance is a federal requirement and a must-have for all Canadian nail salons and technicians.
If you own a nail salon in Canada, it is likely you have at least one worker. While a single worker has fewer responsibilities than two or more workers, it is a responsibility nonetheless. With worker’s compensation insurance, the burden of workplace injury claims and lawsuits are less devastating. How is this possible? Well, the policy kicks in almost immediately following an accident claim associated with a workplace injury.
Again, this is a slightly diverse policy because it covers workers and business owners. For example, a worker injured on the clock files a lawsuit against his employer. Worker’s compensation insurance protects the nail salon from financial loss associated with attorney fees and other legal expenses. A lawsuit can financially devastate a small- or medium-sized nail salon. Depending on how many workers are involved and the severity of the damage, you could be forced into selling your nail salon to cover the injured worker’s medical expenses and missed wages.
If you are covered under a worker’s compensation insurance at the time of the accident, you may get by only paying a small fraction of the legal expenses. In the meantime, the policy will cover the injured worker’s medical expenses and lost wages.
Worker’s compensation insurance covers the following:
- Workplace injuries
- Injured worker’s medical costs
- Nail salon’s legal expenses
To keep your nail salon legal, you must carry worker’s compensation insurance year-round. As an owner of a nail salon, the odds of you dealing with a workplace injury are very high.
Learn More About Business Insurance By Contacting ProfessionalsCoverage
ProfessionalsCoverage specializes in the nail salon and technician business insurance. If you have any questions regarding any of the policies listed above, do not hesitate to contact us. We will not stop doing what we love until every nail salon and technician in Canada is fully covered under a high-quality business insurance policy.
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