Question

Which types of insurance protects the salon owner from financial loss due to an employees negligence?

Answer 1

Liability insurance is the type that protects salon owners from financial loss caused by employee negligence, covering legal fees and damages from lawsuits.

Step-by-step explanation:

The type of insurance that protects a salon owner from financial loss due to an employee's negligence is known as liability insurance. This form of insurance is essential for business owners as it covers the cost of legal defense and damages if the business is sued for negligence. While workman's compensation insurance is necessary to cover employees in case they get injured on the job, it doesn't protect against liability claims resulting from employee negligence. Liability insurance bridges this gap, ensuring that the business owner is not financially burdened by the negligence of employees.

Answer 2

Worker's Compensation Insurance, Professional Liability Insurance, and General Liability Insurance protect salon owners from financial loss due to employee negligence.

Step-by-step explanation:

The types of insurance that protect salon owners from financial loss due to an employee's negligence are:

1. Worker's Compensation Insurance: This insurance provides benefits to employees who suffer an injury on the job. It covers medical expenses, lost wages, and rehabilitation cost. It is mandatory for employers to have this insurance.
2. Professional Liability Insurance: Also known as errors and omissions insurance, it protects the salon owner from claims of negligence, errors, or mistakes made by employees that result in financial loss for the client.
3. General Liability Insurance: This insurance covers accidents or injuries that occur on the salon premises due to the negligence of an employee. It provides coverage for medical expenses, legal fees, and damages.