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PSI Exam (Barbering) Questions and Answers | Latest Version | 2025/2026 | Correct & Verified
What type of insurance covers a barber if a client slips and falls in the shop?✔✔ General liability insurance
What type of insurance protects barbers against claims of negligence during services?✔✔ Professional liability insurance
What kind of insurance is required by law if a barber has employees?✔✔ Workers’ compensation insurance
What is the purpose of business interruption insurance?✔✔ To cover lost income when the shop can’t operate due to covered events
What document shows proof of insurance for a barbering business?✔✔ Certificate of insurance
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What kind of insurance would cover damage to barbering equipment in a fire?✔✔ Commercial property insurance
What insurance helps if a barber’s tools are stolen?✔✔ Business personal property insurance
Why is liability insurance important for barbers?✔✔ To protect against claims of injury or damage caused during services
What does a professional liability policy also get called?✔✔ Errors and omissions insurance
If a barber accidentally cuts a client and it becomes infected, what insurance would respond?✔✔ Professional liability insurance
If a storm damages the barbershop building, what insurance helps with repairs?✔✔ Property insurance
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What is the benefit of having a business owner’s policy (BOP)?✔✔ It combines general liability and property insurance in one package
What insurance helps if a client sues for a bad chemical reaction to hair dye?✔✔ Professional liability insurance
Why would a mobile barber need inland marine insurance?✔✔ To cover tools and equipment transported off-site
What is the main purpose of workers’ compensation insurance?✔✔ To cover employee injuries or illnesses that happen on the job
What insurance helps cover legal fees if a barber is sued by a customer?✔✔ General liability insurance
What does "aggregate limit" refer to in an insurance policy?✔✔ The maximum amount the insurer will pay during the policy term
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What does “premium” mean in an insurance context?✔✔ The amount paid for coverage over a certain time
What type of coverage is most useful for independent barbers renting a booth?✔✔ Booth renter insurance
Why should barbers keep their insurance up to date?✔✔ To stay protected against evolving risks and meet legal requirements
Who should a barber contact first to file a claim after an incident?✔✔ Their insurance provider or agent
What does "deductible" mean in an insurance policy?✔✔ The amount the policyholder pays out of pocket before insurance coverage begins
Why is business income insurance important for a barbershop?✔✔ It helps replace lost revenue if the business must temporarily close
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