MENU
SEARCHBuying business insurance may seem complicated, but it doesn’t have to be. Still, the insurance business seems to have a language of its own. What’s the difference between General Liability and Professional Liability? And what is E&O? I’m a business owner – does that mean I need a Business Owner’s Policy?
*This article was repurposed with permission from Hiscox.
By: Karen Doyle
Buying business insurance may seem complicated, but it doesn’t have to be. Still, the insurance business seems to have a language of its own. What’s the difference between General Liability and Professional Liability? And what is E&O? I’m a business owner – does that mean I need a Business Owner’s Policy?
Here’s an easy way to find out what you need. Just answer these six questions, and we’ll show you what kind of coverage can help keep your business well protected.
1. Do you operate from your home, a space you don’t own, or a client’s premises?
If so, you need General Liability insurance, the basic coverage that every business needs. General Liability covers third-party claims of property damage, bodily injury, and more. So if someone (other than yourself or an employee) says you damaged their property or caused them to be injured, your General Liability policy could cover the cost to repair or replace the damaged property, or pay for their medical expenses, including lost wages.
2. Do you own the commercial building you operate from?
If so, a Business Owner’s Policy (BOP) will cover your business premises and property, in addition to providing the third-party coverage of General Liability coverage. If your building – and your property inside it -- is damaged, a BOP could cover the cost to repair it and get you back to work.
3. Do you have business equipment (computers, furniture, tools, etc.)?
If you have equipment that you rely on to get your work done, consider a Business Owner’s Policy (BOP). This includes General Liability coverage, plus first-party coverage for your own business property. Suppose your computers, tools, or office furnishings, or equipment are damaged or stolen. In that case, a Business Owner’s Policy will get you back to work quickly by repairing or replacing your property.
Remember, if you have a BOP, general liability coverage is included, so you don’t need a separate GL policy.
4. Do you provide a service or regularly give advice?
If so, you need Professional Liability insurance. This is sometimes called errors and omissions or E&O coverage. It protects you from claims that you did something you shouldn’t have done (an error) or didn’t do something you should have done (an omission). You can be sued for just about anything, even if you haven’t made a mistake or the client didn’t follow your advice. And even a baseless lawsuit can be expensive to defend. Professional Liability coverage will pay your defense costs, as well as a settlement or judgment, on a covered claim.
5. Do you maintain a website or store sensitive data, like credit card or social security numbers or health information?
If so, you should have cyber insurance. Cyber insurance covers the costs associated with a hack or data breach, including ransomware demands. Equally important, your Hiscox cyber policy includes CyberClear Academy, a suite of training tools to help you and your employees prevent a cyber incident in the first place, as well as crisis management services from breach response experts.
6. Do you have employees?
Virtually every employer is required to have workers compensation coverage, which pays medical costs and lost wages for employees who are injured or become ill on the job. The fines for not having this coverage are significant, and an uninsured employer would have to pay an employee’s costs out of pocket, so this is crucial coverage for employers.
Having the right business insurance is critical to protecting the business you’ve worked so hard to build. Get a quote at Hiscox.com, and your business could be covered today.
After moving to Colorado and teaching at a cosmetology school, Allison Stock joined Zandi K as a stylist, eventually becoming part of the Leadership Team, Education Team and Master Bridal Team. Today, as Director of Operation, Stock is Owner Nicki Wenz's right hand, managing human resources and operations, education and career development, and coaching and culture.
The company's Concealed Bead Method is raising the bar for what professional extension education can deliver.
Scott maximized her micro-salon by transitioning from stylist to strategic owner, focusing on recruiting and station-sharing. By prioritizing her ownership role over behind-the-chair work, she grew her team to six stylists within the two-chair, 150-square-foot space before eventually moving to a larger facility.
The former CFO of Perdue Farms and owner of Hardy Seafood, Terry Owens delivers a wealth of wisdom and strategies for entrepreneurs in his new book, "Business is Simple."
After scaling her single-location salon business, SALON TODAY 200 Honoree Amy Pal recently sold her six-location Whip Salon for seven figures. Using the six Ps for maximizing a business's value, she's ready to help her peers do the same.
Buried inside the One Big Beautiful Bill Act are federal solar tax credit changes that deserve your attention now. Two of the credits that matter most to commercial property owners, the Investment Tax Credit and the Production Tax Credit, are still available, but only if you move fast. A third, the Commercial Building Energy Efficiency Deduction, has a hard termination date that is closer than most people realize.
Up to 40% of hair stylists ghost the salon interview stage, leaving owners trapped playing endless phone tag with uncommitted applicants. This data-driven report breaks down why traditional job boards create recruitment friction and reveals the modern messaging strategies high-growth salons use to get pre-qualified talent to actually show up. Learn how to transition from cold calling to high-conversion conversations that protect your time and fill your chairs.
Sponsored by Beautista
Spit fests, hostile threats, and even an overachieving matchmaker--SALON TODAY readers share their craziest client tales and how their team handled these tough situations with professionalism and grace.
Keeping your appointment book full when clients are in vacation mode takes more than a good Instagram post. It takes a plan. The 2026 Summer Marketing Calendar from Meevo gives salon, spa & med spa owners a month-by-month roadmap with sharp themes, key opportunity dates, and campaign ideas specifically designed for the beauty & wellness industry. Here’s to your summer season working as hard as you do!
Sponsored by Millennium Systems International
AI is transforming the beauty and wellness industry, and the future is about empowering people, not replacing them. Discover how Phorest AI helps salons, spas, and med spas across North America respond faster, personalize every visit, and keep human connection at the heart of the client experience.
Sponsored by Phorest
Owner Michaella Blissett-Williams credits her General Manager Gloria Hortua with [salon] 718's year-over-year, double-digit growth and says she's been able to scale the company to eight locations because she can rely on Hortua to manage daily operations.
Shine Time: Aluram’s High Shine Line Delivers Moisture and Shine with Clean Ingredients
Sponsored by Aluram
Elyse Rogers is an uplifting presence at The Headroom who makes the team feel heard even in stressful situations. Owner Danielle Cherewyk sings her praises in this installment of Meet the Manager.
Despite a slight and predictable decline in client traffic for Q1, resilient pricing power is driving year-over-year revenue growth in salons. The KIM Report's Alain Audet reviews the data and what it's telling us about the state of professional beauty.
Same-store revenue grew just 2% for the second straight year—and new guest visits declined across every segment of the industry. The 2026 Benchmark Report reveals where growth is actually happening, which verticals are pulling ahead, and what the data says about where your business stands right now.
Sponsored by Zenoti
Hair restoration is entering a new era driven by regenerative science. This paper explores how Exosome technology is transforming treatment outcomes by targeting hair loss at a cellular level. Discover why EXOGROW is leading this shift.
Sponsored by Dermapenworld
A salon brand is much more than a logo. In this thought-provoking blog, Leon Alexander, Ph.D., walks you through the difference. SALON TODAY suggests sharing this article with your team and leading a discussion at your next huddle, asking the team to define your business's brand.
