What to Know About Going Solo

By Liz Kline 

When we think of insurance, many of us think of car or health insurance. But what about insurance that protects your work-related assets? As hair professionals, we know how hard it can be to build a clientele and keep it. That’s why having liability insurance is essential—to protect that clientele and the success you’ve built.  

Liability Insurance 

What is it, what does it do, and why is it important? Liability insurance is a policy that protects you if you are being sued or being held legally liable for claims of damage or injury to a person or property.  

Because there are different types of claims that can be made (e.g., a slip and fall in the salon versus an injury as the result of a chemical in a hair treatment), there are different types of insurance coverage.  

Professional Liability—This claim applies when a guest has been injured during a service you performed and has to do with your actions as the professional, like if you accidentally burn a client with your curling iron or cut them with your shears, resulting in enough injury that the client chooses to sue. 

Product Liability—This claim applies if a client experiences irritation or worse injury as the result of product(s) used on them during a service or during at-home use with products you sold to them.  

General Liability—This claim applies if a guest is injured on your property or if clients’ personal property is damaged, such as a slip-and-fall injury when a client is getting out of your chair. 

These types of liability claims are covered with your AHP membership, but you can further protect your business assets with additional policies as they relate to your work.  

Business Personal Property insurance (BPP), for example, involves coverage for your business tools, equipment, and products. This type of insurance—offered as an add-on policy with AHP membership—covers business-related tools and equipment both on and off-premises. For example, in the event of a fire, theft, or flood, BPP protects everything you need to get your business back up and running.  

The Difference Between Shared and Individual Coverage 

Some policies are shared among multiple professionals while others only cover one individual. Why does this matter? Well, if you purchase a shared policy for your business, you share the liability insurance policy limits with fellow policyholders.  

Let’s say your insurance provider has a particularly high number of claims one year and pays out several sizable settlements. If you file a claim later in the year and have a shared policy, it’s possible there may be no money left to defend or settle your claim. With an individual liability insurance policy, the policy limits are available only to you for the entire policy year. 

Occurrence Coverage Versus Claims-Made Coverage 

Claims-made coverage requires claims to be reported while your policy is in effect. If your policy has expired and someone makes a claim against you (even though you had insurance at the time of the incident), you will have no liability insurance coverage because your policy has lapsed. The insurance company also has the right to refuse renewal of your policy.  

Occurrence coverage (also known as an occurrence form) means coverage continues for incidents that occur while you were insured, even if a claim is filed after your policy has lapsed.  

Let AHP Protect You and Your Business 

With AHP membership, you have the liability insurance necessary to protect you in the event of an accident or unforeseen circumstance, with coverage that follows you no matter where you work.  

AHP offers unbeatable protection with the industry’s best value in liability coverage for hair professionals. For only $17 per month, you receive: 

  • $2 million in coverage per occurrence 
  • $6 million in total coverage per policy year (only for you) 
  • Coverage for professional, general, and product liability 
  • The option to add BPP for just $95 (for $10,000 of coverage) or $250 (for $25,000 of coverage). 

Protect yourself and all that you’ve built with AHP on your side and there for you when you need it most! 

For more useful tools to help advance your career and knowledge, join AHP if you’re not already a member. There’s education at your fingertips with our AHP video library, AHP Indie Stylist magazine, blogs, and more at associatedhairprofessionals.com.  

Not a member? Join today and access all the benefits we offer to support you and your career as a hair professional. 

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