Wig Store Insurance

A wig store with a retail location will require property insurance to cover the building, grounds, and inventory. Request a quote on Insuranceadvisor.com.

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Understanding Wig Store Insurance

Not carrying general liability insurance may lead to insurance claims running into hundreds of thousands of dollars. It can be devastating for a wig store to bear. Keeping wigs in the inventory can be a significant investment and needs protection from disastrous events that could quickly wipe out a business. It could result from hurricane or tornado emergencies, mob disturbances, fires, or burglaries.

Like any business, hair and beauty salons are risk-aware and have processes that help them avoid many such events. Yet, unforeseen threats exist and need to be mitigated. That could be achieved by buying small business insurance.

US beauty salon sales will be at US$ 53.6 billion. The insurance industry has helped beauty salons operate unimpeded by costly claims, thus ensuring the sector's growth.

Business Risks

Product exposures of wig stores need coverage. Let's say the adhesive used in a wig causes an allergic reaction in a customer, or a hairpiece cause’s scalp damage or hair loss. These types of occurrences could result in product liability claims. Risks unique to wig stores need to be covered by appropriate insurance policies. Insurance on inventory, equipment, and furnishings should also be obtained.

  • Example 1: Burglary – Inventory was stolen from a wig store by a thief.
  • Example 2: Copyright Infringement – A hair and beauty salon mistakenly puts up a billboard using a creative image trademarked by a cosmetic store and gets sued.
  • Example 3: Property damage – A raging fire in a wig store causes building and inventory damage.
  • Example 4: Data breach – A wig store that accepts orders online is especially exposed to data breaches of the business’s information and customer details like their private and billing information.
wig store

Recommended Policies

A wig store deals with multiple exposures, but some policies can mitigate their risks while it focuses on running its business. Insurance policies with particular relevance to wig stores are:

General Liability Insurance

This is one of the primary policies that wig stores purchase. Many people visit the store, making the safety of the visitors and the store an important prerogative for the business owner. Product liability, property damage liability, and personal injury liability are some of the claims that could be raised. For example, if a client trips over a wig and hurts himself, general liability would cover medical costs and other claims. General liability insurance also picks up legal defense costs for covered claims.

Product Liability Insurance

Product liability insurance is included within the general liability policy and covers the legal fees needed to defend the claim arising from defective products inadvertently sold by the wig store. Claims arise when there's some bodily injury or property damage liability resulting from a malfunctioning product sold by the wig store.

Commercial Property Insurance

Property insurance protects the physical structure, premises, furniture, equipment, and inventory for covered perils in the policy. It covers the wig store's inventory in the case of a disaster, a fire, tornado, theft, or an act of vandalism that destroys the shop.

Business Interruption

This coverage comes into effect if the wig store temporarily shuts down because the building is damaged for a covered reason and normal operations cannot be performed.

Workers' Compensation Insurance

This covers employees' medical expenses and a percentage of their lost income if they suffer some injury while working at the store. Workers' compensation also provides financial benefits for an employee's dependents if they lose their lives performing their job at the establishment.

Additional Coverages

Business Owner's Policy or BOP

This combines general liability, property, business interruption, and extra expense coverage. Smaller wig stores, in particular, prefer this cost-effective policy.

Cyber Insurance

Cybercrimes are rampant. The risk is particularly high if the store sells its products online.

Comprehensive Insurance costs

To decide on the right policies to cover a wig store, one must look at various exposures, such as its annual revenue, location, the sizes and number of outlets it has, property values insured, and its claims’ history. What the store's policies will cost will be a calculation based on these facts.

Who Benefits?

A safely functioning wig store is ultimately in the interest of the public, the business establishment, the employees running the shop, and the customers who visit the premises to make purchases. A good wig store insurance benefits all the stakeholders of the store.

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