From professional liability insurance to workers’ compensation, learn how to understand and purchase the right insurance for your personal care business. Check out our comprehensive articles and resources to discover how you can protect and grow your business.
Personal Care Business Insurance Basics
Types of Personal Care Business Insurance
Who needs personal care business insurance?
Personal care businesses all stand to benefit from insurance coverage and, in fact, many states require these businesses to carry minimum levels of liability insurance. Accidents and mistakes can happen to anyone, no matter how careful or prepared you may think you are. If a client slips and falls on your business premises or an employee injures a customer, your business could be in dire financial straits if faced with a lawsuit.
Additionally, any number of natural disasters or unfortunate events could befall your business property, from theft to wildfires. Business insurance can provide your business with the financial backing to withstand lawsuits or catastrophes, giving you peace of mind and allowing you to focus on what’s really important—growing your business and making it successful.
If your personal care business meets any of the following criteria, you should consider purchasing business insurance:
- You provide professional services or recommendations
- You sell products or goods to customers
- You own or lease office or retail space
- You work at customer homes or offices
- Your business owns valuable property, such as specialized salon equipment
- You employ others
Personal Care Business Insurance by Profession
Why is personal care business insurance important?
Accidents and injuries can happen, especially when working in close physical contact with customers.
Benefits: Business insurance can provide financial protection in the face of unfortunate accidents or injuries. If a client is injured as a result of your professional services, professional liability insurance can protect you against any lawsuits. If someone is injured on your business property, general liability can provide coverage. And if an employee is injured in the course of their work, workers’ compensation insurance can provide financial and medical benefits for them.
Risks: Without insurance, a single accident or injury could put your entire business at risk. If your business is unable to come up with the funds to pay for damages or pay the legal fees necessary to defend your business, you may need to sell your business assets or declare bankruptcy.
Owning or leasing a salon, spa, or studio opens your business up to a number of risks.
Benefits: Business insurance can protect your business in case anything happens to your business property. If you own or lease commercial space for your salon, spa, or studio, commercial property insurance can provide funds to repair or replace business property that is damaged by a covered peril, including fire, theft, vandalism, and more. If your business needs to shut down temporarily due to property damage, business interruption insurance can provide funds to cover lost income and operational expenses.
Risks: If you rely heavily on your business property or equipment, not having property coverage can put your company at severe risk. If a natural disaster occurs or if your commercial space is burglarized, you may have difficulty recovering financially on your own. Without insurance, you will be picking up the entire cost of repairing or replacing damaged or lost property, and if your business is forced to shut down temporarily, you will need to pay out of pocket to keep your business going.
Certain types of business insurance may be required in your state.
Benefits: In some states, liability insurance is required for certain types of personal care businesses. And in almost every state, businesses are required by law to carry workers’ compensation insurance. Even in the safest conditions, accidents can happen, which is why insurance is a necessary solution. If an employee is injured while working for you or if you injure a client through your work, insurance will cover you financially as well as make your business compliant with the law.
Risks: Without liability insurance, your business could be on the hook for defending against a lawsuit and paying any judgements or settlements. And without workers’ compensation, your organization is wide open to financial loss should a worker get injured or sick as a direct cause of working for you. Moreover, multiple injuries could lead to financial losses that ruin your business. As many places make workers’ compensation part of the law, avoiding the coverage can land you in legal trouble resulting in penalties, fines, and in some cases, imprisonment.