Insurance. The 411 on. for Hair & Nail Professionals. An overview of the insurance you need, in a language you can understand.

Transcription

1 An overview of the insurance you need, in a language you can understand. Brought to you by Liability Basics Comparing Policies Additional Coverage Quote Worksheet Contact Us

2 Q A that provides protection against claims of bodily injury or property damage including: Collapsing chairs Falling lights Slips & falls AHP membership includes general liability coverage What is General Liability? General liability makes up about 50% of all claims!

3 Q A that provides protection against a client claiming that you caused an injury, including: Cuts & nicks Scrapes & burns Chemical burns AHP membership includes professional liability coverage What is Professional Liability? Hairstylists have paid up to $1 million for chemical services gone wrong. Nail technicians have been forced to pay more than $100,000 for treatment mishaps.

4 What is Product Liability? Q A that provides protection if a client has an adverse reaction to a product you are using or products that you sell for them to use at home. AHP membership includes product liability coverage Even if you ask, some clients may not know they have allergies until a reaction happens!

5 Comparing Policies Individual coverage Our $6 million My $6 million The liability insurance included with AHP membership is per member, per year, which is known as an individual aggregate policy. Some other policies have a shared aggregate, which divides the coverage limit among all policy holders. With a shared aggregate, your coverage could be used up before you need it!

6 Comparing Policies Occurrence form vs. claims-made coverage April: Your client slips in the salon. She gets up, everything seems OK, and she leaves. July: You retire from business to pursue a career in acting and do not renew your membership or liability insurance policy. January: Your client, the one you forgot about, sues you for injuries sustained in her slip and fall. It is late, but within the statute of limitations set by the law. What happens? If you had occurrence form coverage, you are protected because the incident happened while you were insured. If you had claims-made coverage, you might not be protected because }your policy has lapsed. The liability insurance included with AHP membership is occurrence form, which protects you against late-filed claims.

7 [ Comparing Policies Make sure you re covered everywhere you work. [ [ Your workplace Your home A rented booth Client s homes Festivals Volunteer cut-a-thons Hospitals Classrooms Wedding venues [ Your workplace The liability insurance included with AHP membership covers you wherever you work under the scope of your license. An employer s or landlord s insurance policy might only cover you on his or her premises.

8 It could be an accident. It could be a mistake. It could be unbelievable. But it does happen. Clients really do get hurt, and they really do sue. A lawsuit can cost more than you might think. Money Lawyer s fees Settlement payout Lost business Future wage garnishment Beyond Money Your reputation Your credit rating Your enthusiasm Your time and attention

9 Q Aequipment What other insurance should I consider as an independent professional? Health insurance covers your medical costs if you get sick or injured. Disability insurance protects you in case you are unable to earn a living through any number of causes car accident, illness, injury, etc. Life insurance is important if you have loved ones you wish to protect after you re gone. Business Personal Property*: Covers the replacement of and product due to fire, flood, and theft. *AHP offers this type of optional insurance in addition to membership at an additional cost. AHP membership DOES NOT include these types of insurance. Go to for information on companies that AHP partners with.

10 Q Astate check What other insurance should I consider as a business owner? Business Interruption: Protects you if your business must close due to a covered loss. Crime Coverage: Protects against employee dishonesty. Property : Protects your building, if you own the building that houses your business. Employment Practices Liability: Provides coverage for allegations of discrimination, wrongful termination, and other employee-related incidents. Workers Compensation: Required by law if you have employees or independent contractors. (Requirements vary by yours.) You may want to consult with an insurance agent for more information about these and other insurance coverage you may require.

11 Liability Rate Quote Worksheet notes Quote 1 Company: _Associated Hair Professionals Phone: _ _ General Per-Occurrence Coverage: $2 million Occurrence Form/Claims-Made? Professional Per-Occurrence Coverage: $2 million Occurrence Form/Claims-Made? Product Per-Occurrence Coverage: $2 million Occurrence Form/Claims-Made? Annual Aggregate Coverage: $6 million Shared Aggregate? (Y/N) N Extra cost for Additional Insured Endorsement? (Y/N) N Quote: $ 179 (included w/ membership) Quote 2 Company: Phone: General Per-Occurrence Coverage: Occurrence Form/Claims-Made? Professional Per-Occurrence Coverage: Occurrence Form/Claims-Made? Product Per-Occurrence Coverage: Occurrence Form/Claims-Made? Annual Aggregate Coverage: Shared Aggregate? (Y/N) Extra cost for Additional Insured Endorsement? (Y/N) Quote: $ Quote 3 Company: Phone: General Per-Occurrence Coverage: Occurrence Form/Claims-Made? Professional Per-Occurrence Coverage: Occurrence Form/Claims-Made? Product Per-Occurrence Coverage: Occurrence Form/Claims-Made? Annual Aggregate Coverage: Shared Aggregate? (Y/N) Extra cost for Additional Insured Endorsement? (Y/N) Quote: $

12 Supporting individual hair and nail professionals with business resources, marketing materials, networking opportunities, liability insurance, and community. Have more questions about liability insurance? Want to learn about everything AHP membership has to offer? Need to join today? Insuringstyle.com Associated Hair Professionals