Top Business Insurances for Businesses in NAICS Code 812111: Barber Shops

Key Takeaways

General liability insurance protects against lawsuits from customer injuries on premises
Property insurance covers damages to buildings, equipment and lost income from natural disasters
Professional liability insurance covers lawsuits from negligent service errors
Workers’ compensation covers employee injuries and required by law in most states
Business interruption insurance replaces lost income during temporary closures
Commercial auto covers owned vehicle liability and physical damage
Equipment insurance protects expensive equipment essential for operations
Cyber liability insurance covers risks of data breaches and ransomware attacks

Introduction

Barber shop businesses in NAICS code 812111 face various risks that could impact their finances and operations. Having adequate business insurance is important to protect the physical assets of the business as well as the owners from costly lawsuits. This article examines the top business insurance policies that barber shop owners should consider.

General Liability Insurance

General liability insurance provides important protection for barbershop businesses from lawsuits and claims that could impact their finances and operations. It covers costs of accidents and injuries that occur on the business premises or involve employees and customers. Some common risks barbershop businesses face include cuts from scissors or razors during haircuts, slips and trips in the shop, and allergic reactions to hair products. Liability insurance protects the business by covering medical costs and legal fees if a customer gets injured and decides to sue. It ensures one large payout does not bankrupt the business.

Category	List
Benefits	Protection against lawsuits from clients if they are injured while on your premises Covers your legal fees if you are involved in a lawsuit Pays for damage to client’s property if it is accidentally damaged during a service Covers medical expenses if a client is injured by an accident on the premises Protects against lawsuits from employees for work-related injuries Covers liability claims from the public outside your premises
Use Cases	Protection against bodily injury or property damage claims from customers Coverage for accidents that happen on the business premises Liability protection if a customer slips, trips or falls in the barber shop Defense against lawsuits if a customer alleges they got injured or sick at the business Coverage for medical payments regardless of who is at fault if a customer needs treatment

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Benefits

Protection against lawsuits from clients if they are injured while on your premises
Covers your legal fees if you are involved in a lawsuit
Pays for damage to client’s property if it is accidentally damaged during a service
Covers medical expenses if a client is injured by an accident on the premises
Protects against lawsuits from employees for work-related injuries
Covers liability claims from the public outside your premises

Use Cases

Protection against bodily injury or property damage claims from customers
Coverage for accidents that happen on the business premises
Liability protection if a customer slips, trips or falls in the barber shop
Defense against lawsuits if a customer alleges they got injured or sick at the business
Coverage for medical payments regardless of who is at fault if a customer needs treatment

Based on industry data, the average estimated pricing for general liability insurance for barber shops is around $1,500 per year. This pricing is derived based on common risk factors and average claims in the barber shop industry, which involves hair cutting services. Risk factors include injuries from razor cuts or slipping hazards. The price was also averaged across barber shop sizes and locations.

Estimated Pricing: $1,500

Property Insurance

Property insurance is an important consideration for barber shops and salons to protect their business investments and ensure continuity of operations after insured losses. Some key benefits of property insurance for barber shops include covering costs of damage or theft to equipment and buildings, liability protection for customer injuries, and income reimbursement during closure for repairs. Common risks property insurance protects against are fire, water damage, theft and natural disasters. Estimated average annual premiums for property insurance for barber shops is $2,500.

Category	List
Benefits	Covers costs of damage or theft of contents and machinery like hair clippers, hair dryers, shampoo bowls, etc. Covers costs to repair or rebuild the building if damaged by fire, storms, water damage, etc. Provides liability coverage if a customer is injured on the premises Covers costs of spoiled products like hair products if a freezer breaks down Reimburses for income lost during periods of closure for renovations after insured events like fires or floods
Use Cases	Protection against fire damage to the property and equipment Protection against water damage from burst pipes or other plumbing issues Protection against theft of property and equipment Protection against damage from other natural disasters like hurricanes, floods, earthquakes

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Benefits

Covers costs of damage or theft of contents and machinery like hair clippers, hair dryers, shampoo bowls, etc.
Covers costs to repair or rebuild the building if damaged by fire, storms, water damage, etc.
Provides liability coverage if a customer is injured on the premises
Covers costs of spoiled products like hair products if a freezer breaks down
Reimburses for income lost during periods of closure for renovations after insured events like fires or floods

Use Cases

Protection against fire damage to the property and equipment
Protection against water damage from burst pipes or other plumbing issues
Protection against theft of property and equipment
Protection against damage from other natural disasters like hurricanes, floods, earthquakes

Based on industry average data, the estimated average annual pricing for property insurance for barber shops is $2,000-3,000. This pricing is derived based on factors such as average business property values, claim histories, risk level of the industry, occupancy type, protection class, and other underwriting considerations.

Estimated Pricing: $2,500

Professional Liability Insurance

Professional liability insurance, also known as errors and omissions insurance, is an important protection for barber shop businesses. It shields the business from financial losses that can occur due to mistakes or negligence related to services provided.

Some key benefits of professional liability insurance for barber shops include protecting the business and owners from lawsuits, covering legal defense costs, reimbursing for client injuries, and maintaining good standing by demonstrating financial responsibility. Common claims involve accidental cuts or injuries during haircuts or shaves. Insurance can reimburse legal defense costs and pay settlements in the event of a lawsuit.

Category	List
Benefits	Protects the business from losses due to negligence or mistakes that result in client injury or property damage Covers legal fees and expenses related to defending a lawsuit Covers losses from third party claims Protects personal assets from lawsuits or claims Maintains good standing and assures clients of financial responsibility Provides coverage for bodily injuries to clients Covers compensation for wrongful acts like slip and fall accidents in the business Protects the livelihood and finances of the business owner Provides peace of mind in running the business operations Protects against claims that may arise years after the incident
Use Cases	Protects against lawsuits from client injuries that occur on the premises Covers medical expenses if a client is accidentally cut or injured during a haircut or other service Pays for legal defense costs if a client sues for allegations of improper service resulting in injuries Reimburses for property damage claims if equipment malfunctions and damages client property Covers loss of income or extra expenses if the barber shop has to temporarily close due to a liability claim investigation or lawsuit

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Benefits

Protects the business from losses due to negligence or mistakes that result in client injury or property damage
Covers legal fees and expenses related to defending a lawsuit
Covers losses from third party claims
Protects personal assets from lawsuits or claims
Maintains good standing and assures clients of financial responsibility
Provides coverage for bodily injuries to clients
Covers compensation for wrongful acts like slip and fall accidents in the business
Protects the livelihood and finances of the business owner
Provides peace of mind in running the business operations
Protects against claims that may arise years after the incident

Use Cases

Protects against lawsuits from client injuries that occur on the premises
Covers medical expenses if a client is accidentally cut or injured during a haircut or other service
Pays for legal defense costs if a client sues for allegations of improper service resulting in injuries
Reimburses for property damage claims if equipment malfunctions and damages client property
Covers loss of income or extra expenses if the barber shop has to temporarily close due to a liability claim investigation or lawsuit

Based on industry research, the estimated average annual pricing for professional liability insurance for barber shops (NAICS Code: 812111) is around $1,000 per year. The pricing is calculated based on factors such as the shop size, number of barbers, annual revenue, claims history, and other risk factors. Larger shops and those with more barbers tend to have higher premiums.

Estimated Pricing: $1,000

Workers’ Compensation Insurance

Workers’ compensation insurance is a critical insurance policy for barbershop businesses to have in order to protect employees from workplace injuries and the business from costly liability. It ensures medical expenses and lost wages are covered for employees who get hurt on the job from common risks like cuts, exposure to chemicals, repetitive strain injuries and slips or falls. Top benefits include affordable premiums, protecting the business from lawsuits, and providing peace of mind. Common injuries involve cuts from sharp tools, chemical exposures, and musculoskeletal issues from repetitive motions. Estimated annual costs range from $1,350 to $2,250 depending on payroll and employee count.

Category	List
Benefits	Pays medical expenses and lost wages for employees injured on the job Protects your business from lawsuits if an employee is injured Required by law in most states Affordable premiums compared to costs of an injury lawsuit Covers temporary and permanent workplace injuries Peace of mind knowing employees are taken care of if injured
Use Cases	Cuts and nicks from razor blades or scissors Exposure to chemicals from hair products Musculoskeletal injuries from repetitive motions like shampooing, cutting hair Slips and falls in the shop

Based on industry data, the average estimated pricing for workers’ compensation insurance for a barber shop business falls between $1.50 to $2.50 per $100 of payroll. This pricing is derived from considering risk factors such as injury rates and claims in the barber shop industry which has a relatively moderate risk. The national average payroll per barber shop worker is about $30,000. So for a small barber shop with 3 employees, the estimated annual workers’ compensation insurance cost would be between $1,350 to $2,250.

Estimated Pricing: $1,350 to $2,250

Business Interruption Insurance

Business interruption insurance is an important coverage for barber shops and salons to protect their business and income from losses due to unexpected closure or reduced operations due to covered incidents and disasters. Barber shops and salons rely on steady walk-in traffic and regular customers to generate revenue. Unexpected closure or inability to operate at full capacity, even for a short period of time, can significantly impact their cash flow and ability to pay operating expenses. Having business interruption insurance can help keep businesses financially stable during these situations and focus on recovery.

Category	List
Benefits	Provides income if the business has to temporarily close due to property damage Covers lost income if a disaster or emergency forces you to close Covers costs if equipment or property is damaged and needs repair Helps replace inventory, supplies, and equipment if damaged in a disaster Covers payroll and operating expenses like rent, utilities, and insurance if the business loses income Protects against loss of income due to civil authority action like road closures during a disaster Allows the business owner to focus on recovery instead of finances if an incident occurs
Use Cases	Loss of income from temporary shutdown due to natural disaster like hurricane, flood or fire. Loss of income if a key staff member is unable to work due to illness. Loss of income during renovation or rebuilding after property damage. Loss of income if there is a drop in customers due to nearby road closure or construction. Loss of income due to utility outage like prolonged power outage. Loss of income during mandatory closure orders from the government due to public health crisis like pandemic.

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Benefits

Provides income if the business has to temporarily close due to property damage
Covers lost income if a disaster or emergency forces you to close
Covers costs if equipment or property is damaged and needs repair
Helps replace inventory, supplies, and equipment if damaged in a disaster
Covers payroll and operating expenses like rent, utilities, and insurance if the business loses income
Protects against loss of income due to civil authority action like road closures during a disaster
Allows the business owner to focus on recovery instead of finances if an incident occurs

Use Cases

Loss of income from temporary shutdown due to natural disaster like hurricane, flood or fire.
Loss of income if a key staff member is unable to work due to illness.
Loss of income during renovation or rebuilding after property damage.
Loss of income if there is a drop in customers due to nearby road closure or construction.
Loss of income due to utility outage like prolonged power outage.
Loss of income during mandatory closure orders from the government due to public health crisis like pandemic.

Based on typical business interruption insurance pricing models, barber shops are usually considered to have medium risk levels for business interruptions. Factors such as smaller revenue/profitability and the need for specific tools/equipment result in pricing averages of around 1-2% of annual revenues or $5,000-10,000 in coverage. For a typical small barber shop with annual revenues of $200,000, the estimated annual premium would be around $2,000-4,000.

Estimated Pricing: $2,000-4,000 annually

Commercial Auto Insurance

Commercial auto insurance provides important protections for barber shop businesses that rely on vehicles for work purposes. It helps protect them from liability and financial losses that could arise from vehicle-related accidents and incidents. Barber shops that operate multiple locations or offer mobile barber services may especially benefit from commercial auto insurance to cover their business vehicles. This protects them against costs in various on-road scenarios like transporting supplies between shops or during mobile service visits. Coverage amounts can vary but typical costs for small barber shop businesses that own 1-5 vehicles used for commercial purposes averages around $1,200 annually based on national pricing benchmarks.

Category	List
Benefits	Liability protection in case of an accident Physical damage coverage for owned vehicles Medical payments coverage for passengers Uninsured/underinsured motorist bodily injury coverage Coverage for vehicles loaned or leased to the business Loss of income protection if a vehicle is disabled Coverage for mobile barber services or home visits
Use Cases	Covering vehicles used to transport supplies or equipment between shops Insuring vehicles used for mobile barber services Protecting against liability if an employee gets into an accident while making deliveries or pickups

Based on national averages, the estimated annual pricing for commercial auto insurance for barber shops with NAICS code 812111 is around $1,200. This pricing was derived from looking at averages of small businesses in the personal care services sector that own 1 to 5 vehicles which are used for commercial purposes like visiting clients locations.

Estimated Pricing: $1,200

Equipment Insurance

Equipment such as scissors, clippers, and chairs are essential tools for barber shops to run their business. However, this equipment represents a major financial investment that businesses need to protect. Insuring this equipment against loss, damage, or liability claims is an important way for barber shop owners to protect their business operations and investment. Insurance can help replace damaged equipment and cover costs that could impact finances and disrupt business continuity.

Category	List
Benefits	Protects against loss or damage of expensive equipment like clippers, scissors, hairdryers, etc from events like fire, theft or natural disasters Provides financial support to replace or repair equipment and continue operating the business if major equipment breaks down or is damaged Covers equipment being used off-premises for events like pop-up shops or product demonstrations Some policies will cover loss of income if a complete equipment failure stops business operations temporarily Covers equipment while in transit if being moved to a new shop location or to an off-site event Includes property that is leased or rented in addition to equipment owned by the business Covers additional expenses to rent temporary replacement equipment if repairs take a long time
Use Cases	Protect equipment from theft Protect equipment from accidental damage Provide replacement cost if equipment is destroyed in fire or natural disaster Cover liability if a customer is injured by equipment

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Benefits

Protects against loss or damage of expensive equipment like clippers, scissors, hairdryers, etc from events like fire, theft or natural disasters
Provides financial support to replace or repair equipment and continue operating the business if major equipment breaks down or is damaged
Covers equipment being used off-premises for events like pop-up shops or product demonstrations
Some policies will cover loss of income if a complete equipment failure stops business operations temporarily
Covers equipment while in transit if being moved to a new shop location or to an off-site event
Includes property that is leased or rented in addition to equipment owned by the business
Covers additional expenses to rent temporary replacement equipment if repairs take a long time

Use Cases

Protect equipment from theft
Protect equipment from accidental damage
Provide replacement cost if equipment is destroyed in fire or natural disaster
Cover liability if a customer is injured by equipment

Based on typical equipment values and loss histories for barber shops, the average annual premium for equipment insurance is estimated to be around $500-800. This covers items like barber chairs, hairdryers, clippers, mirrors, work stations etc. The pricing is calculated based on the total replacement value of equipment (usually $10,000-15,000) and average claim frequency and severity for the industry.

Estimated Pricing: $500-800

Cyber Liability Insurance

Cyber liability insurance provides small businesses like barber shops important protections from the financial risks of cyber threats and data breaches. As technology and cybercrime are increasingly prevalent, cyber insurance has become a necessity for companies handling sensitive customer information. Some key benefits of cyber insurance for barber shops includes reimbursing costs associated with notifying clients of a breach, legal fees, credit monitoring, and protecting the business from lawsuits if a breach occurs exposing private client data. It also covers income loss and extra expenses if computer systems are disabled by a ransomware attack, and provides IT security services to help prevent and manage risks. Estimated annual premiums for cyber insurance for NAICS code 812111 barber shops range from $500 to $1,000.

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Benefits	Covers losses from network security breaches like data theft or cyber attacks Protects from lawsuits in the event clients’ private information is compromised Reimburses for costs associated with a breach like notifying clients, credit monitoring, legal fees, and PR services Covers stolen funds from cyber extortion or ransomware attacks Provides IT security risk management services like vulnerability scanning and employee cyber security training Protects business reputation and revenue in the event of network downtime from an attack Coverage for cyber crime like employee fraud or theft of intellectual property
Use Cases	Data breach involving client information like names, addresses, phone numbers, dates of birth or payment card information Ransomware attack encrypting business systems and files until ransom is paid Loss of income or extra expenses incurred from network downtime due to a cyber incident Legal costs and fines for failing to properly secure client private information according to regulations like HIPAA or GDPR Phishing email scams targeting employees that could lead to wire fraud or other financial losses Defending against lawsuits filed by clients whose private information was exposed in a data breach

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Benefits

Covers losses from network security breaches like data theft or cyber attacks
Protects from lawsuits in the event clients’ private information is compromised
Reimburses for costs associated with a breach like notifying clients, credit monitoring, legal fees, and PR services
Covers stolen funds from cyber extortion or ransomware attacks
Provides IT security risk management services like vulnerability scanning and employee cyber security training
Protects business reputation and revenue in the event of network downtime from an attack
Coverage for cyber crime like employee fraud or theft of intellectual property

Use Cases

Data breach involving client information like names, addresses, phone numbers, dates of birth or payment card information
Ransomware attack encrypting business systems and files until ransom is paid
Loss of income or extra expenses incurred from network downtime due to a cyber incident
Legal costs and fines for failing to properly secure client private information according to regulations like HIPAA or GDPR
Phishing email scams targeting employees that could lead to wire fraud or other financial losses
Defending against lawsuits filed by clients whose private information was exposed in a data breach

Based on typical pricing models for small businesses, the average annual premium for cyber liability insurance for barber shops (NAICS code 812111) is estimated to be around $500-$1,000. This pricing assumes no major prior cyber incidents or data breaches and considers typical risk factors like number of employees, annual revenue, services offered, and security practices. The final price can be lower or higher depending on the insurer’s detailed underwriting and risk assessment.

Estimated Pricing: $500-$1,000

Conclusion

In summary, general liability, property, professional liability, workers’ comp, business interruption, commercial auto, equipment and cyber insurance are key policies for barber shop businesses to protect against risks they commonly face. Maintaining proper insurance coverage provides financial security and peace of mind to focus on running business operations.

Frequently Asked Questions

what is general liability insurance and why do barber shops need it?

general liability insurance protects barber shops from lawsuits if a client is injured on the premises. it covers costs of medical expenses and legal fees. without it, one large injury claim could bankrupt the business.

how much does general liability insurance typically cost for a barber shop?

based on industry data, the average estimated pricing for general liability insurance for barber shops is around $1,500 per year. however, the exact price can vary depending on shop size, location, claims history and other underwriting factors.

what types of risks does property insurance for barber shops cover?

property insurance for barber shops covers risks like fire, water damage, theft of property and equipment, and damage from natural disasters like hurricanes and floods. it protects the financial investment in buildings, equipment, tools and inventory.

how much does property insurance typically cost for a barber shop?

estimated average annual pricing for property insurance ranges between $2,000 to $3,000 for a typical barber shop, though pricing varies depending on property values, location, occupancy and other risk factors.

what is professional liability insurance and why do barber shops need it?

also known as errors and omissions insurance, professional liability insurance protects barber shops from lawsuits if a client is injured due to negligence during a service, such as accidental nicks or cuts. without it, one lawsuit could financially ruin the business.

how much does professional liability insurance typically cost for a barber shop?

estimated average annual pricing is around $1,000 but can vary depending on factors like shop size, number of barbers, annual revenue, claims history and risk level.

is workers’ compensation insurance required by law for barber shops?

yes, workers’ compensation insurance is required by law in most states. it covers medical expenses and lost wages if an employee gets injured on the job. this protects both the employee and employer financially.

what types of injuries does workers’ compensation insurance cover that are common in barber shops?

common injuries covered include cuts, exposure to chemicals, repetitive strain injuries from activities like shampooing hair or using scissors/razors, and slips and falls within the shop.

how much does workers’ compensation insurance typically cost for a barber shop?

estimated costs range between $1,350 to $2,250 annually on average based on payroll amounts and employee headcount. however, exact pricing depends on individual state rates and shop risk factors.

what is business interruption insurance and why do barber shops need it?

business interruption insurance replaces lost income if the shop has to close temporarily, such as due to property damage from fires or floods. barber shops rely on steady cash flow, so this coverage helps pay bills during unplanned closures.

how much does business interruption insurance typically cost for a barber shop?

estimated average annual premium ranges from $2,000 to $4,000 based on 1-2% of revenue, which for a typical barber shop with $200,000 annual revenue would equal $2,000-4,000.

what types of commercial vehicles would commercial auto insurance cover for a barber shop?

it can cover vehicles used to transport supplies between multiple shop locations or vehicles used for mobile barber services that visit clients’ locations.

Top Business Insurances for Businesses in NAICS Code 812111: Barber Shops

Key Takeaways

Introduction

General Liability Insurance

Property Insurance

Professional Liability Insurance

Workers’ Compensation Insurance

Business Interruption Insurance

Commercial Auto Insurance

Equipment Insurance

Cyber Liability Insurance

Conclusion

Frequently Asked Questions

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