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

In the context of protecting a salon owner from financial loss due to an employee's negligence, malpractice insurance is the appropriate choice. This type of insurance specifically covers claims made against licensed professionals for negligent acts that result in harm or loss to clients. In a salon setting, this could relate to various services provided by employees, such as haircuts, coloring, or other treatments that could potentially lead to client dissatisfaction, injury, or financial loss due to negligence.

While liability insurance may provide a broader coverage in general situations where the business could be held liable, it is often more comprehensive and not focused specifically on the professional acts of employees. Property insurance, on the other hand, protects against damage to the physical assets of the business, and health insurance is related to medical coverage for employees, neither of which cover professional negligence specifically. Therefore, malpractice insurance accurately addresses the need for protection against losses incurred from an employee's professional errors or negligence in a salon environment.