With all of the services hair and beauty salons and barbershops now offer it is important to protect yourself as the security of your business, as well as that of your workforce, could easily be affected. Legal action taken against your business can be extremely stressful and expensive so it's a good idea to have insurance in place so that if anything does ever happen you are covered.
The main issues a salon could encounter include:
- Faulty service
- Customer Injuries
- Issues affecting the premises
- Loss of income due to closure
- Workforce injuries
These are the types of insurance cover you need if any of these incidents were to happen.
- Professional Liability Insurance - this will cover you against any claims that the service you have provided wasn't correct and what the client wanted. This will also cover you if the client has an allergic reaction to the hair dye or any other issue with the products/services provided. It will cover legal fees, settlement fees and damages.
- General Liability Insurance - this covers injuries relating to the customer such as them slipping on water on the floor or their property getting damaged due to actions in the salon. This goes hand in hand with Professional Liability Insurance and, as there are some areas that overlap between the two, it is recommended that you get these policies from the same provider as this will stop any confusion over which company should deal with the dispute.
- Commercial Property Insurance - this covers any issues pertaining to the premises such as fire, theft, vandalism, storm damage etc. The policy will cover the cost of repairs or rebuilding following an incident. The policy will also cover any equipment and furniture owned by the business. Check whether it's ACV cover which covers the actual cost of the item minus depreciation whereas a replacement cost policy covers the total replacement cost.
- Business Interruption Insurance - this covers you if your business has to close for repairs (due to a fire etc) resulting in loss of finances. The policy covers loss of income, employee wages, any temporary relocation costs and payments of bills and loans. This is usually added in to the business owners policy.
- Employer's Liability Insurance - this covers your employees if they sustain an injury at work. It will give the employee financial aid as well as protecting you from any potential lawsuits.
The insurance company will take lots of factors into consideration when creating a quote for you including premises, value of equipment, number of workers, security measures and any current or previous lawsuits.
There are so many companies that offer these insurances it can be hard to know where to start. Using a comparison website might be the best way to start as you can compare policies and prices all in one place. Use sites like the ones below or search the web for more.
https://www.premierline.co.uk/our-products/hair-and-beauty-insurance.html
https://www.businesscomparison.com/insurance/form?profession=Hairdressing
I'm sure you'll agree that as a salon owner it's better to protect you, your clients and your workforce from any potential problems that could occur. So don't delay! Make sure you have the right insurance in place for your salon!
