Elena owns a six-chair salon in Redmond. Four stylists rent chairs, two are employees, and she still takes her own clients three days a week. She bought a business owners policy when she opened, and in her mind that meant the salon was insured.
What brought her in was a near miss. A client had a reaction to a lightening treatment, with redness and some hair breakage. It resolved, the client was gracious, and nothing came of it. But it made Elena ask a question she had never asked: if that client had sued, would my policy have paid?
What she asked for
A straight answer to that question, and a check that her BOP was set up correctly.
What the review found
The BOP would likely not have paid. Her policy's general liability covered bodily injury from an accident, like a client tripping over a cord. Harm arising from the professional service itself, a chemical burn, an allergic reaction, a botched treatment, falls under professional liability. Her BOP had an exclusion for professional services and no salon professional endorsement.
Booth renters were a gray area. Four stylists rented chairs as independent businesses. Two of them carried their own liability insurance and two did not. If a renter's client was hurt, the claim would very likely name the salon too, and nothing in her lease agreements required renters to carry coverage or name her as an additional insured.
Two employees, no EPLI. Salons see disputes over commissions, schedules, and terminations. Her BOP excluded employment claims entirely.
What we put in place
We kept a BOP as the foundation, since it is the right package for a salon's property, equipment, and slip and fall exposure. We moved it to a carrier that writes salons specifically and adds a beauty professional liability endorsement covering the services performed by Elena and her employees.
For her booth renters, we worked with Elena on a simple requirement in the rental agreement: each renter carries their own professional liability and general liability, names the salon as an additional insured, and provides a certificate every year. We gave her a checklist for collecting them.
We added a small employment practices liability policy for her two employees and the managers she plans to hire.
Why it mattered
The next spring, a renter's client claimed a keratin treatment damaged her hair and scalp and sent a demand letter to both the renter and the salon. Because the renter's policy named the salon as an additional insured, the renter's carrier defended both of them. Elena's own policy never had to respond, and her renewal was unaffected.
If you run a salon or spa
- Confirm your policy covers the services you perform, not just accidents
- Require booth renters to carry their own coverage and name you on it
- Collect certificates from renters every year and keep them on file
- Treat employees as an exposure your BOP does not cover
Every salon's setup is a little different. Ask for a free policy review and we will tell you exactly what happens if a client's service goes wrong.