Do you specialize in quick trims, straight-razor shaves, haircuts or chemical treatments? In 2019, beauty salons and barber shops combined revenue of approximately USD$46.5 Billion. Based on research done by OpenPR, the cosmetics industry is forecast to grow at a compound annual growth rate (CAGR) of 5.1 per cent from 2022 to 2028.
What other services does this include? Hair salons and barber shops can include a range of services such as hair and scalp treatments, beard and mustache shaping, colouring, straightening treatments, facials, grey blending, waxing and perms.
The global cosmetics market continues to attract more people to personal care and grooming. In a survey conducted by Unilever, around 74 per cent of 10,000 subjects agree that beauty and personal care make people feel better about themselves. Whether it is purchasing hair or skin care products, perfumes or makeup, the cosmetics industry plays a huge role in people’s lives. Cosmetics can be classified into products that contribute to personal care or makeup to enhance one’s looks. In this case, barber shops can sell products like pomade, beard balm and oil, and hair salons often sell shampoo, conditioner, styling cream and brushes. You need to be vigilant about thefts in your salon or shop because these products can be expensive.
Hair salons and barber shops require a lot of responsibilities: cleaning the work areas, tools and equipment to reduce cross-contamination, selling hair or facial products, providing various services that increase the risk of cuts, burns and unhappy customers, maintaining client records that include their personal and private information and supervising apprentices who have minimal experience. With that, you need to be aware that salons and barber shops come with many risks and issues.
Risks Associated With Hair Salons and Barber Shops
Canadian Centre for Occupational Health and Safety addresses the following health and safety issues for individuals in the cosmetics industry:
Biological Hazards
- Contracting infections
Chemical Hazards
- Exposure to chemicals
- Skin and respiratory issues
Ergonomic Hazards
- Strain injury
- Fatigue
Psychological Hazards
- Exposure to workplace violence
Safety Hazards
- Risk of cuts or burns
- Slips, trips and falls
- Fire and electrical hazards
While barbershops and hair salons must establish a number of workplace and safety procedures, accidents can still happen.
Mitigate Safety Hazards in Hair Salons and Barber Shops
Here are a few tips from Fuse Insurance to help you mitigate safety hazards in hair salons and barber shops.
- Understand what products contain hazardous substances and get your employees to be WHMIS trained
- Establish a routine to inspect tools and equipment
- Clean and disinfect all equipment
- Provide a first-aid kit and first-aid training
- Wear personal protective equipment (PPE)
- Designate areas for tools and equipment that may harm your employees and clients (scissors, styling rods, chemicals and solutions)
Common Insurance Policies for Hair Salons and Barber Shops
The risks of owning a hair salon or a barber shop go beyond health and safety risks. You must also consider your clients.
Here are a few examples: breaches of privacy in clients’ personal information, thefts of tools, equipment, cosmetics, and telephone calls, appointments and interactions that cause harassment or bullying.
Whether you manage a barbershop, hair salon, or if you are a freelance hairdresser or barber, you need to know what insurance policies are needed to protect you from the risks associated with this industry.
Errors and Omissions
If you offer your professional expertise or advice, you could be held liable if something goes wrong or you fail to deliver a service as a customer expected. Errors and Omissions insurance can protect your hair salon or barber shop from allegations of error or oversight in your work. It can help cover the costs associated with court fees, administrative expenses and settlement costs.
Claim examples:
- Misinforming on the price of the services you offer
- Over promising to clients and failing to deliver
- Administrating system errors
- Damaging your client’s hair with a product or tool
- Burning or cutting your client’s skin
Commercial General Liability
Commercial General Liability (CGL) protects you from everyday risks that happen in your studio such as a customer slipping and falling over equipment resulting in an injury. CGL covers claims of third-party property damage, bodily harm or advertising injury that occur on or around your business premises.
Claim examples:
- Slipping and falling within the salon or shop
- Damaging your client’s belongings with a product or tool
Commercial Property
Commercial property insurance protects your business location and its contents (incl. equipment and inventory) if you suffer a physical loss such as fire, theft, water damage or vandalism. This insurance will help cover the cost of repairing or replacing your property so that you can get back to running your business.
Claim examples:
- A pipe bursts in your building causing damage to furniture and equipment
- Retail shoplifting or shoplifting of tools and equipment
- A fire destroying your inventory and equipment
Read more: Property Crime Coverage for Businesses and Tips for Preventing Crime
Tools and Equipment
Hair salons and barber shops invest a lot of money into tools and equipment. Some barbers and hairdressers provide remote services. With that, tools and equipment such as shears, clips, combs and brushes are at risk of being stolen or damaged. This policy will provide coverage for the repair or replacement cost if your tools are damaged, lost or stolen. To ensure you have enough coverage, you will need to make an inventory list of what tools and equipment your business owns.
Claim examples:
- Theft with colouring products, scissors, shears and razors
- Damage to units, steamers and shampoo station
Whether you run a hair salon or barber shop or independently work as a hairdresser or barber, the experienced brokers at Fuse Insurance are here to provide customized insurance programs for those in the hairdressing and beauty industry. Our online quote application is quick and easy and provides the information we need to get your insurance policy in your hands as soon as possible. To start your quote now, fill out our form online or call 1-866-387-FUSE (3873).
