How Is Insurance for Beauty Salons Different to Normal Business Insurance?

By Darragh Timlin on July 21st, 2023

Have you ever wondered how insurance for beauty salons differs from typical business insurance? As a salon owner or professional, understanding the complex and unique aspects of salon insurance is crucial to protecting your business. But what exactly sets it apart from other forms of coverage?

In this blog post, we’ll explore the ins and outs of salon insurance, from unique risks and treatment liability coverage to professional treatment risk and specialised policies. We’ll also discuss the importance of regularly reviewing your insurance to ensure your salon remains fully protected. So, let’s get started on this journey to better understand the world of beauty salon insurance and make confident decisions about safeguarding your business.

1. Unique Risks, Unique Coverages

Beauty salons face a range of risks that are different from those faced by other businesses. One of the main risks is that the treatments and services provided can lead to injury or harm to customers. For example, a client may have an allergic reaction to a product, or a stylist may accidentally cut a client’s skin during a treatment. In addition, the equipment and tools used in beauty salons, such as hairdryers, straighteners, and sharp implements, can pose risks if not used or maintained properly.

Another unique risk is that beauty salons often have a high level of foot traffic, with clients coming and going throughout the day. This means there is an increased risk of accidents, such as slips and falls. It’s essential for beauty salons to have adequate insurance coverage in place to protect against these unique risks and any potential claims that may arise as a result.

2. Coverage for Beauty Treatments

Treatment liability coverage is a crucial component of beauty salon insurance. This type of insurance covers claims that may arise from the treatments and services provided by the salon. For example, if a client has an allergic reaction to a product used during a facial, or if a hairdresser accidentally burns a client with a curling iron, treatment liability coverage would help to cover the costs associated with these incidents.

It’s important to ensure that the treatment liability coverage included in your beauty salon insurance policy is comprehensive and covers all of the services that your salon offers. Some policies may exclude certain treatments, so it’s essential to review your coverage carefully and discuss any gaps or exclusions with your insurance provider.

3. The Beauty Industry as a Mix of Service & Retail

Some businesses sell things. Some provide services. Beauty salons often do both—which means they require more coverage than businesses in many other industries.

Property and contents insurance is another important aspect of beauty salon insurance. This type of coverage protects the physical building and its contents, such as furniture, equipment, and products, in the event of damage or loss. Some common scenarios that property and contents insurance can cover include damage from fire, flooding, or natural disasters, as well as theft or vandalism.

When considering property and contents insurance for your beauty salon, it’s important to take into account the value of your equipment, products, and any other items that are essential to the day-to-day operations of your business. You’ll want to ensure that your policy provides enough coverage to replace these items if they are damaged or stolen.

Similarly, public and products liability coverage is a critical component of beauty salon insurance. This type of insurance protects your business from claims that may arise as a result of injury or damage to third parties, such as clients or members of the public, while on your premises or as a result of using products that you have supplied.

For example, if a client slips and falls in your salon, or if a product you have sold causes an adverse reaction, public and products liability coverage would help to cover the costs associated with these incidents. It’s important to ensure that your public and products liability coverage is comprehensive and provides adequate protection for the specific risks associated with your beauty salon.

Similarities to Typical Business Insurance

All that being said, beauty isn’t entirely unique. There are many areas that beauty salon insurance covers which are also covered by typical business insurance.

Theft & Vandalism

One example is theft. Theft and vandalism can be a significant concern for beauty salons, particularly those located in high-traffic areas or with valuable equipment and products on display. It’s essential to have adequate coverage in place to protect your business from the financial impact of theft and vandalism.

Employers’ Liability

If your beauty salon employs staff, it’s important to have employers’ liability coverage in place. This type of insurance protects your business from claims that may arise as a result of injury or illness sustained by your employees while carrying out their duties. In many countries, employers’ liability insurance is a legal requirement for businesses with employees.

Employers’ liability coverage can help to cover the costs associated with legal fees, compensation claims, and medical expenses resulting from workplace accidents or illnesses. Be sure to review your policy carefully and ensure that it provides adequate coverage for your business and its employees.

Business Interruption

Business interruption and loss of income coverage is an essential component of beauty salon insurance. This type of coverage protects your business from financial loss if it is unable to operate due to unforeseen circumstances, such as a natural disaster, fire, or extensive damage to the premises.

For example, if your salon is unable to operate for several weeks due to fire damage, business interruption insurance would help to cover the loss of income and any additional costs associated with finding temporary premises or rebuilding your salon.

Professional Treatment Risk Insurance

Professional treatment risk coverage is another important aspect of beauty salon insurance. This type of coverage protects your business from claims that may arise as a result of professional negligence or mistakes made while providing services to clients.

For example, if a client claims that a treatment you provided caused significant harm or did not achieve the desired results, professional treatment coverage would help to cover the costs associated with defending the claim and any potential compensation awarded to the client.

Choose Salon Saver

Salon Saver is the next evolution of beauty salon insurance. A new wave that excludes nobody from achieving their ambitions. Our insurance policies are strictly no-fuss – they don’t have all the same bells and whistles, but what they do have is all the core covers that you need to keep your business safe. And that’s what really matters. 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. By following the tips and advice outlined in this blog post, you can help ensure that your beauty salon is fully protected, allowing you to focus on delivering exceptional services and growing your business with confidence.

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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