Does a Barbershop Need Liability Insurance if the Property is Rented From Others?
Liability insurance isn't just for property owners. A variety of circumstances can generate liability claims, so it's important for you as a business owner to cover your own liabilities. A landlord's liability insurance typically only protects the landlord. Additionally, businesses like barber shops or salons require specific professional liability insurance policies.
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Landlord Liability Insurance
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Your landlord's liability insurance covers the property for potential exposure that could be the landlord's fault. This entails things like problems with the property, such as a faulty handrail, problem with a sidewalk or walkway or other property exposures. When property conditions cause injury to a tenant or his guest, landlord liability insurance might cover it. However, landlord liability is designed to protect only the landlord. Landlord liability doesn't protect against injuries caused by the tenant.
Liability Insurance in the Lease
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Some commercial property liability insurance policies may include some tenant liability protection, but you must negotiate this as part of your lease. If the market is competitive or the landlord really needs a tenant, you may be able to get your landlord to purchase an umbrella policy or additional insurance coverage to protect against some of your liability. However, this isn't a standard clause; typically the landlord carries only liability insurance that protects him from damages caused by the property.
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Barber Shop Professional Liability
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In addition to the standard business liability that any business should carry, barber shops and salons typically require specific liability insurance. This protects from injuries caused by the type of services that a barber shop offers, such as cutting hair, styling, trimming, conditioning and dyeing. Without this specific coverage, your business liability insurance may not protect you in a lawsuit. Most barber shop professional liability policies carry specific exclusions, so make sure you know what your policy covers.
Additional Insurance Coverage Options
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In addition to barber shop professional liability insurance, you may be required to carry other types of insurance. If you employ any of your staff directly, for example, you may be required to carry worker's compensation insurance. You may also want to carry other types of insurance, such as building and business personal property, which could protect your equipment or provide you with coverage for lost wages. Talk with an experienced commercial insurance agent to ensure you have the right coverage for your business.
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References
- Universal Lines Insurance Services; Business Insurance for Barber Shops
- Online Insurance Education, Inc.; Chapter Eight - Various Business and Professional Liability Coverages
- BarberSecure; Liability Insurance for Barber Shop Professionals
- NOLO; Tenant Injuries: Landlord Liability and Insurance FAQ
- FindLaw; Liability for Tenant Injuries and Insurance for Landlords
- FindLaw; Commercial Property Lease Agreement
Resources
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