Which type of insurance protects the salon owner from financial loss due to an employee's negligence?

Which type of insurance protects the salon owner from financial loss due to an employee's negligence?

• A. Premise
• B. Malpractice
• C. Social Security
• D. Product liability

Answer: (B)

Professional liability protection covers the salon owner when a client claims harm due to the actions of a staff member. If a client alleges that a service performed by an employee caused injury or damage, this insurance helps with legal defense and any settlements or judgments. It focuses on negligence or errors in the professional services provided, rather than accidents on the property or issues with products. Premises liability would handle injuries that occur on the salon’s premises, like a slip and fall, not claims about the quality or safety of the service itself. Product liability covers harm caused by products you sell or use, not by the service performed. Social Security is unrelated to insurance at all. So, the protection described is malpractice (professional liability) insurance.

Professional liability protection covers the salon owner when a client claims harm due to the actions of a staff member. If a client alleges that a service performed by an employee caused injury or damage, this insurance helps with legal defense and any settlements or judgments. It focuses on negligence or errors in the professional services provided, rather than accidents on the property or issues with products.

Premises liability would handle injuries that occur on the salon’s premises, like a slip and fall, not claims about the quality or safety of the service itself. Product liability covers harm caused by products you sell or use, not by the service performed. Social Security is unrelated to insurance at all. So, the protection described is malpractice (professional liability) insurance.