If you have an affinity for beauty and a knack for cutting, coloring, and styling hair, becoming a licensed cosmetologist might be the ideal opportunity for you. However, as exciting a career as it is, working in the beauty industry can be challenging at times.
If anything unfortunate happens while working on someone or renting space in your home (like catching fire), the liabilities that come with being a business owner are much higher than if you were simply an employee of another business.
To protect yourself from potential lawsuits and legal fees, investing in worker’s comp business insurance is essential as a business owner. Here are a few reasons why:
Protects You From Personal Liability
As a business owner, you are responsible for every aspect of your operations and may be held personally responsible for any accidents or injuries that occur on the job. So, if someone leaves your business and trips over a box of hair color in their way, and they decide to sue you for their injuries, workers comp insurance can protect you from any personal liability. You’ll be protected from paying any medical bills associated with injuries or any other damages related to the injury.
Helps Cover Employee Injuries Or Accidents
Cosmetologists often deal with high levels of stress and long hours on their feet, which can lead to serious injuries or long-term illnesses like carpal tunnel syndrome. If one of your workers is injured or falls ill on the job, whether it’s a long-term injury or a quick and sudden accident, your company is financially responsible for all related medical expenses.
This could quickly lead to financial distress and hinder your ability to stay in business and protect your workers from losing their jobs. However, worker’s comp insurance can cover their medical costs as well as wages while they’re out of commission can help you keep your business afloat until they can return.
Covers Damages To Your Business Property
Whether you rent or own your salon, there’s always a chance that someone could accidentally cause damage to your property. This could happen if a coworker mishandles a chemical or they break a piece of equipment that needs to be repaired or replaced.
If your company doesn’t have workers comp insurance, any damage to your property could be your responsibility. This could cause major disruptions in your business and could cost you a ton of money out of pocket.
Your workers comp insurance policy will cover any damages or accidents that happen on your property so you don’t have to pay for them out of your own pocket.
Covers Legal Fees If Someone Sues You
Unfortunately, it’s not uncommon for customers to sue salon owners after having a bad experience. Things could go wrong in any business, but it’s especially common in the beauty industry. One bad haircut or nail job could lead to a customer filing a suit against your salon.
Since you’re the owner, you’re personally responsible for anything that occurs at your business, even if it isn’t your fault. But if your employees are covered under workers comp, their insurance company will pay any legal fees related to the case. This means you won’t have to spend your own money on lawyers, which could save you thousands of dollars.
Worker’s Comp Is an Essential Part of Running Any Business
In the beauty business, things can get pretty hairy quickly. An unexpected disaster can strike practically anywhere, even in a small cosmetics firm you’ve poured your heart and soul into creating. This is a very real risk that any business owner in the cosmetology field must consider, no matter how well-trained your employees are.
So, if you’re thinking of opening a cosmetology business or expanding your existing one, you must invest in workers comp business insurance to protect your business against unforeseen circumstances that could compromise your cosmetology business.