BEAUTICIANS AND BARBERS PROFESSIONAL LIABILITY OVERVIEW

Hair and beauty salons in the U.S. make up a $20 billion industry. Most operations in this competitive sector offer an increasingly wide range of services. Some salons offer an even wider array of services that involve a higher level of risk, crossing over into the realm of surgical procedures that may be practiced by medical spas (also known as medi-spas). Current operations may also involve the following:

• Botox injection
• Liposuction
• Dermabrasion
• Laser Treatments
• Permanent Make-up

Available coverage may differ widely regarding newer, more complicated services. It is essential to know the scope of coverage of a particular form. An individual insurer's application will reveal that certain services must be handled by endorsing additional coverage or with standalone insurance.

It is a good practice that the general liability exposure be underwritten by the same insurer who provides the professional coverage. This minimizes possible disputes over whether an occurrence alls within the scope of one coverage or the other.

Another critical consideration is addressing the products hazard (products sold by a salon to customers for off premises use). It is included in the insuring agreement of professional liability forms used by some insurers and provided in the CGL written by others.

COVERAGE

Fundamental coverage provisions are similar in professional liability policies and coverage parts written by the various underwriters for beauticians and barbers. But they are not standardized. Therefore, it is important to check the coverage features and options of an insurer's program. Coverage typically involves:

• Injury or damages arising out of defined professional services provided at a beauty or barber shop
• Products liability due to harm arising out of application of preparations that a salon or shop’s clients purchase at the insured location and then use at home. Coverage may or may not apply to preparations made by the insured.

EXCLUSIONS

The differences in policies written by various insurers are most apparent in the exclusions. Items that are commonly barred from coverage are exposures covered by commercial general liability insurance and other types of insurance available to and appropriate for beauty salons. Typically, forms exclude plastic surgery; removal of warts, moles or other growths; use of radiation for the removal of hair; body massage other than facial or scalp massage; sun-tanning treatment; ear-piercing.

The exclusions in a policy prepared for a salon must be examined carefully and called to the attention of the insured. Coverage may be available and should be arranged for services, basically excluded, offered by an insurer.

ADDITIONAL COVERAGES - ENDORSEMENTS

A completed application is an effective guide for prescribing additional coverage that is not basically provided by a policy. Services performed by an applicant can be checked against exclusions contained in the coverage part to be used. Various insurers will cover services excluded in the basic coverage for an additional charge.

APPLICATION

An application for beauticians and barbers professional liability insurance is the basis for coverage and incorporates statements and data that is used (and relied upon) by the insurer. Accordingly, it must be completed accurately and include the signature of an authorized person.