No matter the size or nature of your tattoo parlor, having appropriate insurance is key for protecting itself against claims involving property damage and bodily injury, while errors and omissions coverage protects against allegations of subpar work performed on clients.
Commercial property insurance provides valuable protection for your equipment, furnishings and the physical building itself (if you own it). Furthermore, it protects against loss or damage due to natural disasters or other causes.
General Liability Insurance
Tattoo shop ownership comes with many risks, from unexpected accidents to lawsuits filed by dissatisfied customers or professional mistakes. A comprehensive insurance policy provides your business with protection from these threats so you can focus on running a successful enterprise.
General liability insurance is an essential policy for all businesses, including tattoo and piercing shops. It protects you from claims related to property damage, bodily injury and any third-party injuries caused by your operations as well as medical bills and legal fees that might arise as a result. Furthermore, treatment risk insurance should also be included within a general policy as it can cover incidents like an allergic reaction in customer receiving their tattoo or piercing procedure.
Property insurance is essential to any tattoo and piercing business. This coverage protects against loss or damage of equipment, furnishings, supplies and valuables used for conducting your operations – particularly useful in case of natural disaster or another unforeseen incident that damages it, such as fire. Typically this policy pays to replace them less the amount of your deductible – most landlords require you to have this in place prior to renting space for your shop.
Artists who travel to events or conventions to perform their services need this type of coverage in their policy to protect both themselves and their business from injuries suffered while away from the studio. It will cover damages to vehicles as well as medical care in case an incident arises that requires treatment away from home, which helps safeguard both their business and reputation.
Workers’ compensation insurance is essential in any tattoo and piercing shop, as it covers employee injuries sustained on the job. While accidents happen occasionally in close quarters or with clients, workers’ comp insurance offers them financial relief while recovering, covering medical costs as well as lost wages from work injuries so you don’t have to worry about them struggling with payments while recovering.
Property Insurance
Your tattoo and piercing business requires multiple insurance policies to safeguard it against various risks. At its core lies general liability coverage to cover third-party bodily injuries and property damages; you will also require workers’ compensation insurance, professional liability (malpractice), as well as property coverage to safeguard equipment, furnishings and the physical building where operations take place.
Though your precise policy needs depend on your business’s needs, most tattoo and piercing shops should possess at least general liability, property, and workers’ compensation policies. Additionally, renting may necessitate adding either a landlord policy or endorsement on their existing policy to meet specific demands of renting space.
Workers’ comp coverage protects employees who become injured on the job from medical costs and lost wages; in most states it is mandatory for tattoo and piercing businesses that employ one or more employees to maintain coverage.
While it is crucial for all businesses, tattoo and piercing shops with young or inexperienced employees are particularly at risk from accidents occurring on the job, so this coverage is especially essential for tattoo and piercing shops with this workforce. Accidents are inevitable; young or untrained staff members can easily be injured on the job.
Professional liability or errors and omissions (E&O) insurance for tattoo and piercing businesses is also known as errors and omissions (E&O) coverage, and provides legal defense fees or settlement costs incurred due to poor work quality or complications from services provided to their clientele. Example: if a customer alleges that their tattoo was not sterilized properly or did not turn out as expected, leading to emotional distress, an E&O policy can provide coverage for legal fees, settlement costs and any related expenses. Finding out how much tattoo and piercing insurance you require requires consulting multiple providers for quotes. Specialist providers typically understand more fully the unique insurance needs of this industry and may provide tailor-made policies at more cost-effective rates.
Business Interruption Insurance
No matter if you are an established tattoo artist looking to open their own shop or a beginner just entering the industry, opening a tattoo parlor requires many steps and considerations. From licensing requirements, insurance policies and staffing considerations, as well as considering factors like choosing the location, creating budget and devising long-term financial strategies – everything must be in order.
As your first step in starting a business in your State, the initial step should be identifying any licensing or permit requirements and creating a legal structure for it such as sole proprietorship, partnership, limited liability company (LLC), or corporation. Doing this protects personal assets in case of litigation; for this reason it may be wise to hire an attorney to review all available options and ensure all paperwork is in order.
After you have established your business model and structure, the next step should be writing a business plan. A plan should outline services offered, target market analysis, budgeting needs and cash flow projections as well as any financing options to pursue to help get the business up and running.
Other considerations when opening a tattoo shop include finding an appropriate location, recruiting tattoo artists and purchasing equipment and supplies. You will also need an EIN number which is necessary for doing payroll, paying state taxes and filing paperwork as a business owner.
Once your business is underway, you must put in place the appropriate hygiene protocols. Tattooing and piercing both require using sharps that must be disposed of responsibly – this includes keeping an accurate inventory and using a hazardous waste collector that complies with local regulations.
Business interruption insurance provides financial support for a closed business due to disaster. This can cover employee wages, taxes, loan payments and utility bills that remain outstanding despite its closure. This coverage often supplements a commercial property policy.
Workers’ Compensation
Tattooing requires high levels of skill and precision, yet accidents still may happen. Should an employee get injured while working, workers’ compensation insurance will cover medical bills as well as some lost income and protect your business against liability if an injury prevents them from returning to work.
Most states mandate that tattoo and piercing shops carry workers’ compensation insurance. Many insurance providers specialize in offering coverage to this particular type of business, which means they may provide more cost-effective rates than traditional brick-and-mortar insurers.
Property insurance protects the assets that make up your tattoo shop, including equipment, furniture and the physical building (if you own one). Should one of these assets become damaged due to covered risks like fire, theft or vandalism, repairs will be covered as well as reimbursement should your shop have to close for repairs due to an insured event. In some policies this coverage can also extend to business interruption coverage – providing reimbursement if repairs require closing down for maintenance work that would have otherwise taken place anyway.
Professional liability, or errors and omissions insurance, protects you in the event someone claims that your services were delivered negligently or do not meet customer standards. For instance, if a customer specifically requests colored fills but you forget during their tattoo session and only add black ink instead – they could sue for negligence; having this coverage as part of your tattoo shop insurance could cover legal fees as well as settlement costs for these claims.
Finally, treatment risk insurance provides coverage in the event that one of your customers is unsatisfied with their tattoo or has an adverse reaction during its application. As this aspect isn’t covered by public liability policies alone, including it in your tattoo parlor’s insurance will protect it against claims for negligence and malpractice claims.
At first, the most essential step is identifying your needs and selecting policies necessary for your tattoo and piercing shop. Furthermore, it’s wise to compare rates from various providers as the price of tattoo shop insurance will differ between providers.
