Common Beauty Salon Insurance Mistakes and How to Avoid Them

By Darragh Timlin on July 14th, 2023

Let’s face it, running a beauty salon comes with its fair share of challenges. One major concern is undoubtedly securing the right insurance to protect your business from potential risks. Are you confident that your current policy is up to the task, or might there be some common mistakes that you’re unaware of?

This blog post aims to shed light on frequent beauty salon insurance errors and provide practical advice on how to sidestep them. By addressing these pitfalls, you can ensure your salon is adequately safeguarded, giving you the peace of mind to focus on what you do best – making your clients look and feel their best. So, let’s dive in and learn how to avoid these insurance blunders!

1. Not getting legally-required insurance coverage

One common mistake beauty salon owners make is underestimating the importance of public liability cover. It’s certainly true that it protects your business against claims made by clients or members of the public who have suffered injury or property damage due to your business operations. For example, if a customer slips on a wet floor in your salon and injures themselves, they could make a claim against you.

But more important than that? It’s actually a legal requirement. Not only are you endangering your business through inadequate coverage, but by breaking the law!

A similar mistake is neglecting employer’s liability insurance. This is a legal requirement for any business that has employees, even those working part-time or on a temporary basis. If one of your staff members suffers an injury or illness as a result of working for you, they may claim compensation from your business.

To avoid any legal disputes and financial losses, it’s crucial to have both employer’s liability insurance and public liability insurance in place. Not doing so can result in hefty fines and a damaged reputation for your salon.

2. “Saving money” by skimping on unessential covers

Many salon owners overlook the need for business interruption insurance. This type of cover safeguards your salon from financial loss due to unforeseen circumstances, such as a natural disaster or extended closure for repairs. It can help cover your lost income and any additional expenses incurred while your business is unable to operate.

By not considering business interruption insurance, you leave your salon vulnerable to unexpected events that could cause significant financial strain. It’s worth investing in this type of cover to give you peace of mind and ensure your salon’s continued success.

Beyond that, your salon’s equipment and stock are essential assets, but some salon owners fail to adequately insure them. Equipment breakdown, theft or damage can be costly and significantly disrupt your business operations.

3. Inadequately assessing the needs of your business

Property insurance is essential for any business, but some salon owners fail to adequately assess their needs. This can mean not undertaking full risk assessments, or not accounting properly for current or future growth in your business. This can lead to underinsurance, leaving your salon vulnerable to significant financial losses if disaster strikes.

Take the time to accurately assess the value of your property and its contents. Factor in any improvements or renovations you’ve made, and ensure your insurance policy reflects these changes.

4. Misunderstanding exclusions

Insurance policies can be complex, and it’s essential to understand what is and isn’t covered by your beauty salon insurance. Failing to do so can lead to costly mistakes and leave your business exposed. Take the time to thoroughly review your policy and clarify any exclusions with your insurance provider. This will ensure you have the right level of cover in place for your salon.

5. Not Regularly Reviewing And Updating Your Insurance Cover

Finally, it’s important to regularly review and update your insurance policy. As your salon grows and evolves, so too should your insurance cover. Failing to do so can leave your business underinsured and at risk.

Regular insurance reviews ensure your cover keeps pace with your business. Whether you’ve added a new treatment, bought new equipment, or expanded your premises, each change should trigger a review of your insurance coverage.

6. Not Choosing Salon Saver!

Salon Saver is the next evolution of beauty salon insurance. Our objective is simple; to bring low-cost core protection to those businesses that know what they need and don’t want to pay for more than they have to. Avoiding these common insurance mistakes will not only save your salon from potential financial loss but also ensure your business remains compliant and protected at all times.

Choose Salon Saver for a comprehensive insurance solution that will keep your business safe and secure, allowing you to focus on providing excellent services to your clients. Remember, when it comes to insurance, it’s better to be safe than sorry.

Darragh Timlin

With over 25 years’ experience, Darragh is an expert in all things insurance. Starting his career in commercial property underwriting, Darragh has worked for a number of global insurers and is now Managing Director of Salon Saver, part of the wider Henry Seymour Group.

All articles by Darragh Timlin

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