Professional Liability Insurance

Professional Liability Insurance by the Day

This webinar features Dr Tye Caldwell , CEO of ShearShare Chris Moore, head of ibott at Apollo Martin Burlngame, CEO of Barefoot insurance the three touched on professional liability insurance, how this year has been a year of overcoming and perseverance, and how doing business without coverage could be very dangerous!

Full Transcript Below:


joining us and welcome to the protection and liability webinar the importance of insurance and why you


need it today we have dr ty caldwell who is the ceo of shareshare


we have martin berlingame who is the ceo of barefoot insurance as well as


chris moore who is the head of ibot for apollo thank everyone for joining thanks a lot


yeah thank you i’m going to pass it over to dr caldwell to get everyone started


thank you angel and thank you guys for joining us uh chris moore and martin burlingame you


know this is going to be what i consider not just education but an amazing webinar because i think that you know as


sheer share is um becoming this ecosystem for the beauty industry and trailblazing


we are also trailblazing with another um insurance leverage for the industry and


you know i think this is something that’s so important so i just really want to get you guys take on you know a few questions that we


have and kind of how we’re going to you know not just partner but help this gig economy in the beauty


industry as we are relating to so much now uh with the technology as it’s starting to become a


little bit more faster as people are starting to become a business of one uh people who are realizing that now as


this world changes they want to now leverage in their business not just in


the beauty industry as a licensed professional but also as a licensed owner so we want to just kind of get some


things uh kind of understood and give education and plus thought-provoking answers to the


questions that i will provide today sounds good sounds great sounds good


all right so you know i think that you know a lot of people don’t really understand


a lot about um how this industry works from a business standpoint


and i just kind of want to start with you uh chris and then follow on with with martin my first question would be


how do you see our industry transforming in the next five years as related to insurance


yeah sure i think what’s really interesting is you know companies like share share and


and others in this sort of shared space right have have actually caused a somewhat of a


disruption in a traditional industry like insurance insurance was always something that


went with huge corporations from a commercial setting and personal insurance was really your home insurance or your car


insurance and and what’s now happening is people want to work in different ways


right they want to work where they want when they want in a much more flexible agile basis


and so you know platforms like shareshare are catering for that within the beauty industry well the the big hurdle there is well


insurance doesn’t really work like that insurance is normally bought for an old by an organization


for 12 months and that that’s how it works now you’ve got these individual independent contractors


if you want to call them that that actually now need insurance that’s flexible because their work is so


different and their locations are so different so it’s moving away from that traditional bricks and mortar


type model to a much more dynamic one and i think what i commend the shareshare team for doing


is taking insurance on board realizing it’s so important for your for your consumers for your users and


creating a really easy and accessible solution to support people so that they can work in the in these


new ways of working thank you thank you to tag on with


with chris is um we were talking about the 12-month policies your traditional beautician policy is


sold by half dozen 20 companies and it’s limited really to one location


and you put your address of where you do your work and you show up it will work at whatever day of the


week it is and you leave at the end of the day and it really contemplated everyone being employees of the company and now


everyone’s going to a gig economy 10.99 and it allows the beautician the beauty


salons alone can rent out empty seats to 1099 contractors


and it gives you the flexibility as a beautician to have clients in different parts of the


of the city and have offices wherever you go so you can go to the south end of the city


and have your dozen clients there in one day and go to the north end and have two days there and if you don’t


want to work you don’t have to work and it makes the insurance completely based on the amount of business coming


in versus a guess about how much you’re going to write that is so amazing and i think that as


you as you say that my mind just starts to swirl around i’m like how exciting that could be for people to


get away from the old adage and i own a salon barbershop that my brother manages and of course we have


to always send the form in to to the uh to the leasing people who release uh the


brick and mortar from and i just think i just did that a few days ago so it’s one of those things where it is not as as bad as as it used to be


but as we start to transition into this new wave it makes things so much more easier and


it makes it flexible for this for people to now not to be scared of insurance and so i


really like the way you put that um so amazing questions and i really


hope that the listeners are gathering and understanding why we’re we’re bringing this to the forefront my


second question is going to be you know i think that i want you to start with this martin and it’s it’s one of those things that i


think people should really listen to uh in in a lot of ways so they can understand how things are changing


so my question is what are some things owners or separately stylists should keep in mind when starting a


business or looking for insurance well i mean that’s a tough question uh


assuming you do all the requirements of federal id number and all the rigamarole that states require


us to jump through um when you look which is we all know a


massive stack that keeps getting bigger and bigger and bigger um the first thing they need to do is they got to figure out where they’re


working and they have to read what their what they’re buying so quite often


i see in the stylist more in the beauty salon area where a salon will buy an


insurance policy and not take into account that a lot of the people working


in their salon are 1099 contractors and quite often their insurance and their lease requires


all subcontractors to have insurance as well people don’t read what they buy i mean


that is a we were all guilty of this when was the last time when we bought a house or something that you actually read every


single page of the six thousand page document in large font you just initialed every page


saying you’d read it and you flipped them all through and you didn’t read what you bought um we’re all guilty of that


so i i don’t read my car insurance policy and i’m an insurance so i’m in the same boat but you need to


understand the basic caveats of what your lease requires and you sign a contract with somebody


for a brick and mortar and they tell you a b and c and you need to comply with a b and c and if d is your independent


contractors have insurance then d needs to happen because if something bad happens


you just don’t want to give an out to everyone to just hand the blame to you and not pay for anything


absolutely you want to add to that chris yeah i mean i’m quite passionate in my own


world of being relatively disruptive or innovative whatever you want to call it for me i’m one of those strange


anomalies that actually love insurance um and i can bore anyone to death about the joys of insurance if they’re if


they’re willing to listen but i think for me as someone to see in the industry


i think it’s a failing of us that we create these documents that nobody wants to read so the passion for me and when i work


with martin and working with you know the shareshare team is we actually want to create something that’s actually really easy to understand


really transparent and really simple so your users really know what they are are buying my advice to stylists would


be it doesn’t have to be that really complicated annual policy we’re talking about a usage-based


insurance so you only you know pay as you use it right so you’re having an accurate premium


reflective of how much exposure the insurance company is facing um and i think again to to echo martin’s


point on the actual salons and the bricks and mortar type is is just make sure you really understand


the coverage that you’re buying and make sure that um it’s compliant with it so if there are independent contractors just check


you know if it’s through the shareshare platform have you got the insurance that the guys are offering and and and that’s the the best way to make


sure that everyone is covered that’s great i i laughed martin because


you said something this answer’s so great chris i really love it i echo to what martin says as well we do


not read thoroughly you know what we are buying and i never forget you know being a salon and


barbershop owner for over 20 years when i first started i never really thought about because it’s a lot of paperwork so you want to


read the things that are that make sense but you really want to know what you’re covering but if i had to speak


to the licensed professionals i had to speak to the salon and barbershop owners the spa owners and the people who are coming into the


industry are wanting to come into the industry you know we’re a business you know when we first start out i think that most


people forget that they’re trying to build clientele they’re trying to make a name for themselves so what they call that now that they


didn’t call it back then is branding what they call it now is what they didn’t call it back then is a salon of one you know a lot of people


are working now in law and suites a lot of people are working in stations a lot of independent contractors just own that station that


they’re working at for the time that they’re leasing it for and they’re a business so if you’re going to get insurance


you’re not only protecting yourself you’re protecting the salon and the things that could break or possibly could go wrong you protect your


customers anything that could happen and so you want to make sure that you’re reading and i would always tell people


buy and purchase insurance i never forget when i when i first got approved for it i thought that i hit the lottery because


you have to have it in order to really protect your business in order to protect yourself and your reputation is online with that


as well so everything that you guys are saying is so important but if i had to just really really sing


it to the to the mountaintop i would say get some insurance and do not be afraid to invest in yourself


insurance is an investment for your business and long-term investment because you just never know what’s going to happen


a lot of free things happen a lot of things you don’t expect to happen and it could be anything from a third in


the electricity electricity box it could be anything from a chair breaking down it could be anything from a client falling


or anything from you hurting a client that you didn’t expect to do insurance if you get the right coverage insurance will cover that


so those are the things that i think from your answers has really really been good and it’s really some of the things that


i think licensed professionals don’t really come to thought to the thought process or mind to do


because they’re thinking about so many other things that may not be as important but insurance is at the top for me yeah


i mean i i don’t think we do a very good job of marketing ourselves on industry most people when they think of insurance think of


the multitudes of ads that are on their tvs interrupting their their programs and having to see all


these annoying ads but you know insurance is there to rebuild lives when when the worst possible things happen you know if a hurricane


comes through you know those homes are rebuilt by insurance companies for the premiums they’ve collected so


whilst it might not be the most glamorous thing to buy and some people get frustrated they have to buy every year


when something really bad does happen and it’s the uncontrollable it’s the best decision you ever made


that you bought that insurance product because you know it can keep you afloat as a business absolutely and i never forget my dad


told me a long time ago uh when i got a car you have to buy insurance he wouldn’t even let me drive the car if i didn’t have insurance


if he was arrested if it was an old car and you couldn’t get full coverage at least get liability you could cover


the other driver even if you don’t know yourself because your car might not be you know worth anything enough to to get


rebuilt or buy news but you can at least cover the person that is that you have a wreck with if it’s your fault so i think that it’s so


important for people to really understand and understand the blurred lines that are in between them


and and and insurance for the things that could possibly happen so our great answers guys i really appreciate it did


you have anything to add to that martin no it’s uh insurance is cut catastrophe


protection right and it’s been a year of catastrophes uh 2020 will go down in the record books is


one of those uh so uh and there’s been a lot of insurance payouts for it right we’ve had hurricanes fires


la ninas el ninos el dorados uh i mean it just goes on cova i mean it


just goes on and on and on for the year so um i mean it’s an important thing and you know one of the real good things


that we didn’t bring about your platform is the ability to scale up and down depending on what’s going on in governmental shutdowns


so you know if you’re if it’s on a usage base and people aren’t being able to work


then they don’t have to pay for insurance which is really a great idea in the gig economy kind of structure


instead of having to have a forced outlay of money wow that’s great you know and from my


next question is it’s kind of if i want to get your guys perspective on this and take you know not coming from


the beauty industry but seeing things from so many different variables and different industries i want to kind of


get your thoughts what are some of the pitfalls of beauty professionals not having


insurance and and really diving into that question i want to start with you uh uh martin


um the biggest issues of injury of clients right i mean that’s going to be your biggest problem


um does it happen i mean it can it doesn’t happen very often


the more complex i mean if you get out of barbers and hairdressers and get into more


complicated procedures skin peels and so on then that kind of stuff can happen i use my mom as a classic example she


had something on her arm and they did and it just ripped all the skin and she had six months of dealing with


that unexpected she’s in her late 80s frail skin and that’s what the insurance


company for the salon paid for because it was i mean nobody intends to hurt anyone but


sometimes it does happen and you don’t want um to deal with the problems that occur


the biggest thing about the insurance is legal defense right it gets you attorneys to protect you when you get sued for something and


lawsuits are one of the most expensive sides even if there’s no payout the cost of paying attorneys on a daily


basis or hourly or by the minute or by the six minutes whatever they charge um is very expensive and get very very


expensive fast and this gets you protection to at least defend yourself and present the fact that you might not have done


anything wrong yeah and i i would just add to that i think beyond


just the financial protection right because defense you know litigation um and medical bills in in in areas


united states are incredibly expensive even for somewhat somewhat minor injuries you might think


so you’ve got that financial protection from the insurance product but i also think and to touch on a point you said ty


everyone is looking after that brand you spend your your life creating that brand that image that reputation and i like to call it


that trust you know if you know for me my wife even during covert has not touched my hair


there is no way i’ve got a trust with my barber he cuts my hair he cuts it the way i like he cuts it and


it’s taken a long time for me to have that trust that i you know i don’t even need to say anything more he cuts my hair and


insurance helps protect that trust that you have with your consumers so if something happens insurance steps in to protect your brand


to to make things right to bring about a better quick resolution for somebody that’s either injured or had some


damaged property so that you keep that brand you keep that trust to your consumers and i think that’s that’s a really important aspect of the


product as well that is such a great answer uh from both of you guys i think i got two stories


from the first perspective is i i i’ve been in this business long enough to see injuries happen i always tell young kids


that we’re coming in with their parents no running i tell people don’t come in there if they i make sure i’ve got a car uh


something for people to clean their feet on outside so that they won’t slip on the on the floor when they come in from rain


or whatever or ice and and i think people don’t realize how important it is to to share that


information with your clients you know but at the same time letting them know that you are insured


but i think that if you’re honest with people you won’t have to deal with people trying to hurt themselves on purpose and


stuff like that but one also the things that i like about shareshare is that we’re adding this to the platform but we’re also kind of


uh getting rid of this intermediation i think so many times this industry is so uh fragmented that people start to build


trust in people but when you haven’t when you don’t deal when you don’t have insurance and people just kind of want to say okay


they want to say okay well ty you know randy wants to come in and say hey you know what i don’t want to go through sheer share


but uh can i go through you well it’s up to the the salon host


a barbershop host and the user to say hey you know what if something happens to me or my client how is this going to get taken care of


well if you go if you just intermediate and do it on your own now you’ve taken share share out of it


one of the things i like about having insurance that the people can trust the platform when i when i get when i look for uber


ride when i go for airbnb state it’s not i don’t trust the host i trust


the platform so when you’re building trust you’re building trust with the platform because they’re doing everything they can to


make sure that they’re they’re taking care of not only you but your customers as well and at the same time it’s not taken away from your


business it’s not taking away from your brand nor is it taken away from your trust now you can say i trust shareshare


because i trust the platform and i think that people forget that so i think the pitfalls and the professionals


not having insurance is so major and it can be something that can really hurt their business and their trust and now that we live in


a world where it’s you know ratings and reviews people get rating no not only will we


have to remove you but you’re showing that the fact that you disintermediated now we can’t trust the fact that you


won’t do it again so we have to remove you from the platform so i think having trust from the lawn salon host and barbershop host


is super important so that they now can build that trust it’s all about personal relationships


but when you add that layer of interpersonal relationships through tech people can look at the platform and say now i trust the user that’s coming


through when i book through uber when i book through airbnb and they accept my booking i i trust the person that’s accepting it


because they trust the platform that they’re working under so i think it’s so important for people to hear


these answers just so that they can understand why we’re why we’re giving the them the answers to the test oh you’re


absolutely right i mean i i use rideshare services all the time you know and so if i’m in the us i’m using


uh lyft or uber you know i’m happily getting into a stranger’s vehicle because i’ve got the like you say the


trust and the platform i’ve if someone said to me would you get into a stranger’s vehicle off one of those platforms well that’s


that sounds crazy still but i wouldn’t do that because i don’t have the trust but i think yes the


insurance is part of it but also you know to qualify for that insurance or to qualify as a host


on shareshare you’ve done a lot of vetting and you’ve done you know your checks and balances and


made sure that there’s risks there that are being controlled and that you’re putting people in safe


environments and things like that so it’s that sort of thing that i think creates the trust and this is a classic example that risk and safety


is crucial to shareshare because you’ve you’ve built an insurance program to support it um and that’s just a testament to to how


you guys approach the business great great anything you want to add to that martin no i mean it’s


it’s all platform driven right uh the world’s going to platforms the gig


economy is here and is growing and growing and where people trust we can start


trusting the platform uh for just as chris and you were mentioning and that’s what becomes


important it just makes it easier to use a platform and


link up and get what you need out of it than to try to in your case individually book at a salon to go you


know i’m going to the south end of town and what’s available in that area here i can find out


immediately whenever wherever i can book it i can set it up i can already be working on my


brand with my customers i can actually book a month out two months out i can schedule everything i can work on


my clients i make my life easy which is what you’re doing you’re making the salon


stylists life easy so they can do what they do which is cut hair and make money right i mean they don’t


want to be in the booking business yeah you’re right that’s so funny guys i


i think that we’re going to be a hit when people really listen to this and we’re going to eventually have to get


back on another one we’re going to come we’re coming down to the close of this webinar and i want to get your take on


this last question uh before angel hops back on so when um


when you end this thing more and i’m gonna let you get your last say but i want to start with you listen this this this question is is


really big and i guess you kind of understand it too but as the gig economy and sharing economy grow why is it important for


this segment or individuals of this economy to be protected yeah sure i i think the gig economy and


we’ve seen it in in the most recent election right um that there the once you get all the flexibility


once you get all the agility that you can do lots of different things and it’s no longer you know you have one job and that’s all


you do you you can live a life that’s so much more full than that and you could just be so much diversity in your life


the one thing that sometimes isn’t catered for is you don’t get the sort of same amount of benefits and protections


and security that sits with a traditional employment model and so what we’re trying to build here


is an insurance product that gives you the sort of protections you would get is it if you were operating as an employee


and now no one wants to see bad things happen but sometimes they do and they’re uncontrollable and all we’re trying to make sure that


just because you’re in a gig type setting and they share an economy that you still have all the security all the protections you


would get in the old traditional model we don’t want this to be a negative we just want it to be you know a pure


positive so we’re putting these you know this safety blanket around people um so that we can you know


keep keep pushing the boundaries of how big this growth can be and and shaping what the future looks like


amazing well i mean the biggest thing about the gig economy is flexibility to do


anything anywhere um so on the shareshare platform it allows a stylist


to really plan out their life in a way they want to live it as opposed to being dictated by a nine


to five job somewhere right so they want to schedule things


six weeks out and work and travel and you know not work for two weeks they can do all that kind of stuff it gives them


the complete flexibility to manage their own schedule their own time and their own income at the same time there’s a lot of


protections as chris was mentioned that have to exist and what we’re doing is we’re taking the yearly protections and taking them on a


usage basis and as the gig economy continues to grow and get more predominant


you’re going to see things like health insurance and and other products that are going to expand out to handle gig


economy workers across the entire thing so it’s not requirement of being at one


job you can fractionally pay for it or or pay it from different locations


it’s not going away people want flexibility at all i mean that’s what we people want they want to be able to work from anywhere


well i mean i don’t think any of us are sitting in our in our brick and mortar offices right now


no we’re all working remote and that’s what’s happening that’s a great thing you said something


and i want the the listeners to understand this word usage basic usage basic


i think that what people don’t understand is is that as we deal with the iconic the gig economy as


we deal with on demand as we deal with things like that you you said that word usage is is major and


i think that they need to understand that it’s not about like that yearly uh insurance is it’s


not about monthly it’s based on the usage of it so i am so excited uh


just for you guys to be a part of our journey as we trailblaze something that’s never been and that we’ve been


dating for a while chris and you know that we talked a long time ago and we and we’re just so glad that it came to this to


this day and yeah you brought in martin everything has been so amazing so i’m sure that the this is gonna you


guys are gonna be rock stars for us and we’re gonna have to hop on again one day but we’re getting ready to go into


the q a and i really want to be able to give these um give these answers to whoever uh that


has come in so let’s see what we got so far so i’m back um okay so we’re going to jump into our


first question this question comes from marcus from los angeles california and he says


do i need to have insurance if i’m an independent contractor wow i would definitely say yes i


encourage all licensed beauty and bargain professionals to have or get coverage for protection of themselves and their customers like we


talked about earlier i think it is very important as business owners that we take the necessary steps


to build and maintain our business for long term liabilities will happen that’s just the bottom line and what


in what capacity in what way small or large we don’t know but when legally not every state mandates that


independent contract to carry professional liability insurance but it is definitely unnecessary to be a professional i always want to let


individuals know in this time in this day and this age if you have insurance you have you have put yourself ahead of


your of your competition and you have put yourself in the in the position to really consider yourself a professional


because you’re doing all the right things to to limit anything that comes into play if there is um anything to


happen as a liability you’re able to take care of that because you you’re now paying for that insurance on the protection


not just for yourself but for your customers okay um we have a question from


brittany from houston texas and she says this is for uh chris and martin how


did you get into providing insurance for the sharing slash gig economy oh


chris chris and i are on different when we’re not on different sides but we are chris is the insurance company


and i’m the insurance agent side of it so it’s probably the best way


so from the insurance agent side um we just started getting approached by a


lot of different platforms uh to provide insurance for the platforms we’ve got about 20 different


platforms that are that needed insurance for their independent contractors


and it’s also fascinating i mean you you want to work on stuff that’s exciting and new and different


and requires you to think i mean that’s what we all want to do on a daily basis and the gig economy is ever evolving and


ever changing and requires really knowing your stuff and keeping current on your stuff which


is really interesting and fun chris how did you guys get into ibot um my story starts in a bar like most


other stories i suppose so i i was at a um i was at a bar in an insurance conference so


a true rockstar conference that was but was approached by a sharing economy platform a pretty big one


in 2013 and just going to a conversation and they said look we’re really struggling to


find the insurance product we want and and it came down to that a traditional company buys insurance to protect


its employees and its assets and most sharing economy platforms don’t own any assets and so it was a


real challenging insurance aspect and what they were trying to do was build trust by getting people to utilize


their service which was in fact sharing homes um and they were trying to provide an insurance


product that protected all these homeowners that were allowing strangers into their into their houses um so they wanted to


ensure something they didn’t own and that was the challenge and it was amazing they were doing that to protect trust and


to build that trust because you know you’re not going to put your most prized asset which is your home onto a platform to be utilized by


strangers if you don’t know there’s an insurance product that if there’s any damages or anyone gets hurt that’s going to pay for that damage um


so we built that program um and then just realized that the opportunity and the growth in the


sharing economy was a huge um a huge opportunity and there just wasn’t insurance products


on that usage based metric within this space for gig workers and so you know it’s it’s thankfully


allowed us to meet some some fascinating companies with some some incredibly bright futures


um but we’re just trying to cater for a new type of insurance product that currently doesn’t exist so it’s been


really exciting that’s great uh thanks brittany and i want to say this to brittany and also


to the listeners and share this aloud you know and sing it from the mountaintop you know we’ve partnered with the


leading insurance providers for the sharing economy to provide specialized coverage for all our industry for this beauty industry and and


everybody that’s a licensed professional so starting in the next couple of weeks host and stylists will be able to access


this new type of protection and we’re so excited that she’s here uh i think that that is awesome i’ve


definitely had my fair share of bad experiences in the beauty industry and


them not being covered there’s no insurance so i’m left to deal with


my own vices uh not fair so i think that on my end as far as being a consumer


insurance is very important very important i do want to thank everybody for joining me


tyler jim no i want to say thank you to martin i want to say thank you to chris because


this has been so you know and you know you know time is is is of essence and i think


that is the more we know uh the better we can kind of go forward and do business in this way and i think that this industry


is a little bit behind in a lot of way that we do things so the fact that we can talk about this


and and even though it’s not a sexy topic is we can turn it and make it a little bit more easy to listen to and a little


bit more sexy to appease them so i think that this has been so educational i’ve learned a lot as well


from you guys pleasure well thank the both of you thank you dr


caldwell for joining us and until next time you guys see you


you guys thank you take care bye

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