A Houston woman sued a tattoo shop in 2016, after her tattoo became infected. It just goes to show that no matter how good your tattoo shop business plan may be, you may need legal insurance in order to stay in business. You may be able to achieve your goal of opening a tattoo shop, only to have the entire enterprise come crashing to a halt because you didn’t have liability insurance. Here are some things you need to know before opening your own business.
1. A Lawsuit Can Happen
Tattoo studios can be sued by clients for legitimate reasons in some cases — but they can also be sued for entirely subjective reasons. Look at all of the tattoo shop equipment that is required to run the business. There are sharp objects and of course, accidental injuries do occur. If a staff member forgets to clean or disinfect equipment, it can lead to a possible infection.
Can a client sue you if they simply don’t like the way that their tattoo turns out? Surprisingly, they can. There are litigation attorneys out there who specifically cater to people who want to sue a tattoo studio because they regret a tattoo that they chose to get. If someone slips and falls inside your business, you can be sued for that.
What if someone is getting their very first tattoo, only to discover that they are allergic to the pigment? That’s another potential way that you can be sued, even though you couldn’t possibly have guessed that they would have an allergic reaction.
What if a client tells you exactly how they want something spelled and you follow their instructions — but they spelled it wrong in the first place? As outrageous as it sounds, your business could be sued for that.
There are a lot of ways that a tattoo business can be targeted for a lawsuit that you may not realize. When you list tattoo shop expenses in your business plan, be sure to budget for a good liability insurance plan.
2. Liability Insurance Protects Your Business
Imagine fighting a frivolous lawsuit in court, winning the case… and still losing your business due to runaway legal costs. That nightmare scenario can happen to any type of business, including a tattoo studio. Mistakes can happen at even the most meticulous and professional tattoo shop. Liability insurance is what can protect you from losing your business due to legal costs.
A comprehensive liability insurance policy will help to pay attorney’s fees to fight your case in court, and will also help to pay settlements if needed. A comprehensive tattoo studio liability insurance policy will protect your business from the many unpredictable challenges that you might face.
You’ve probably made an extensive tattoo shop inventory list as part of your business plan. It most likely includes all of the equipment, tattoo business software, employee compensation and other business expenses. Now, add liability insurance near the top of the list.
3. Don’t Forget Workers’ Compensation
Speaking of tattoo studio employees, don’t forget to include workers’ compensation as another necessary expense. Workers’ compensation is required in most states and it protects your business in the event that an employee is injured on the job. Health insurance may or may not cover every possible injury or illness that an employee could sustain working in a tattoo studio. Even though it may be legally required in your state, don’t forget to list it as an expense on your business plan proposal.
Before You Open a Tattoo Business
- The tattoo industry faces specific and unique liability risks
- Liability insurance protects your business from lawsuits
- Workers compensation protects your business from potential employee injuries
Don’t let your dreams of running a successful tattoo business come to a halt due to an unforeseen lawsuit. Contact Marine Agency today at 800-763-4775 to get a quote for tattoo studio liability insurance.