Maximising Your Beauty Salon Insurance Coverage: Do’s and Don’ts

By Darragh Timlin on July 28th, 2023

Tackling the world of beauty salon insurance can be a real puzzle. How do you balance risk and cost? What are the pitfalls to avoid, and what extra coverages should you consider? And what about cyber insurance – yes or no? You’ve got questions, and we’ve got answers.

This blog post will help you unravel the mystery with a straightforward list of dos and don’ts. We’ve considered everything from keeping pace with industry changes to planning for seasonal adjustments and more. We’ll guide you through the process of maximising your cover, ensuring you’re protected without overspending. So, let’s get to it, shall we? Let’s make your beauty salon insurance work harder, smarter, and more efficiently.

1. Do’s: Understanding Your Current Cover

Before you begin to make changes to your insurance coverage, it’s critical to understand what your current policy entails. Many beauty salon owners are unclear on what their insurance covers and, more importantly, what it doesn’t. This can leave gaps in your protection which could be costly in the event of a claim.

So, get out your policy documents, roll up your sleeves, and start reading. Make a list of your coverages, limits, and any exclusions. This will help you identify coverages you could do without, saving you money, too.

2. Do’s: Regular Coverage Review

The needs of your beauty salon change over time. New treatments become available, you could be offering more services, or perhaps you’re growing your team. Hence, it’s important to regularly review your coverage to ensure it still fits your business. A yearly review is a good rule of thumb. This gives you the opportunity to adjust your policy and ensure you remain adequately protected.

3. Do’s: Keeping Up With Industry Changes

The beauty industry is a fast-paced, ever-evolving beast. New treatments, technologies, and methodologies are continuously emerging. As a salon owner, it’s crucial to keep abreast of these industry changes and understand how they affect your insurance needs. Don’t be left in the dark.

4. Don’ts: Overlooking Special Coverages

Special coverages can provide extra protection for your beauty salon. This might include cover for unique or specialised treatments, employee dishonesty, or customer property. Be wary of overlooking these types of coverage. They may seem unnecessary on the surface, but could save your business in a crunch.

5. Do’s: Adequate Cover For Specialised Treatments

If your salon offers specialised treatments, it’s vital to ensure these are adequately covered. From laser treatments to body contouring and more, these services often require additional coverage due to higher risks. Don’t play down the importance of this. Your standard policy may not be sufficient.

6. Don’ts: Neglecting Employer Liability Insurance

If your salon employs staff, employer liability insurance is a must. This protects your business against claims made by staff for injury or illness caused by their work. Neglecting this cover can lead to hefty costs if a claim is made, so don’t overlook its importance—not least because it’s legally required for any business that employs staff.

7. Do’s: Ensuring Business Interruption Cover

Business interruption cover helps keep your salon afloat if an unexpected event forces you to close temporarily. This covers ongoing costs such as wages and rent, allowing you to get back up and running without significant financial strain. Don’t be mistaken. This is not a luxury, it’s a necessity.

8. Don’ts: Forgetting Public Liability Insurance

Public liability insurance covers you in the event someone is injured or their property is damaged at your salon. Forgetting this crucial coverage can leave you financially exposed. Don’t take this lightly, accidents do happen.

9. Do’s: Protecting Against Theft And Damage

Theft and damage can happen at any time, and it’s important to have coverage in place to protect your salon. From break-ins to accidental damage, ensuring you’re covered can provide peace of mind.

10. Don’ts: Ignoring Legal Expenses Cover

Legal disputes can be costly and taxing. Whether it’s an employment dispute or a claim for compensation, ignoring legal expenses cover can leave you out of pocket. Don’t risk it.

11. Do’s: Plans For Seasonal Adjustments

Different seasons can bring different risks. Whether it’s busier periods leading to increased chances of accidents, or quieter times where thefts might be more likely – adjusting your coverage to match these fluctuations can be a smart move.

12. Don’ts: Underestimating Equipment Cover Needs

Your beauty salon relies on its equipment to function. Underestimating the need for full equipment cover can be a costly mistake. If equipment breaks down, or is stolen, having to replace it out of pocket can be a huge financial burden.

13. Do’s: Updating Insurance Provider On Changes

Any changes to your business should be relayed to your insurance provider. This includes changes in services offered, the number of staff, or even changes to your premises. Keeping your provider updated ensures your coverage remains relevant and adequate.

14. Don’ts: Skipping Regular Risk Assessments

Regular risk assessments can help you identify potential issues before they become problems. Skipping these assessments can mean overlooking a threat that could affect your insurance claims. Don’t be complacent – regular checks should be a standard part of your business operations.

15. Do’s: Consistent Record Keeping For Claims

Keeping consistent records is key when it comes to making an insurance claim. This includes receipts, invoices, and incident reports. These documents will support your claim and make the process smoother.

16. Don’ts: Making Quick Decisions On Your Excess

Choosing a level of excess is a critical part of setting up your insurance policy. Making quick decisions on how much to have as an excess without considering the potential impact on your business could lead to higher costs in the event of a claim.

17. Do: Choose Salon Saver

Salon Saver is the next evolution of beauty salon insurance. Our insurance policies are straightforward, providing core protection without the unnecessary extras. Our goal is simple – to deliver affordable, essential protection to businesses that know what they need and don’t want to pay for more than necessary. With Salon Saver, you can focus on what you do best – running your salon. And remember – when it comes to insurance, prevention is always better than cure. Make sure you’re fully covered and ready for whatever comes your way.

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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