10 Common Insurance Mistakes Hairdressers Make and How to Avoid Them

By Dean Laming on July 27th, 2023

People often realise the importance of reliable hairdresser insurance only after an incident occurs, when faced with costs their insurance doesn’t cover.

Unfortunately, this realisation comes too late to prevent the financial or other losses associated with the incident. For example, a hairdresser might decline coverage for a particular event, thinking it’s unlikely to happen, only to have the worst happen.

Looking back, they realise that paying for the additional coverage would have been much less costly than dealing with the event without insurance. Here’s what can happen if you’re not prepared.

1. Underestimating Liability Coverage Needs

One of the most significant insurance mistakes that hairdressers make is underestimating the importance of comprehensive liability coverage.

As a hairdressing professional, you face potential legal claims from clients who may experience dissatisfaction or injury due to your services. In such cases, having sufficient liability coverage can save you from incurring substantial financial losses.

General and professional liability policies are essential for every hairdresser, as they protect against claims arising from accidents, injuries, or property damage caused by your business operations.

An ideal policy will also cover legal fees for defending yourself against potential lawsuits. To avoid this mistake, assessing your unique risks and working closely with an insurance expert to find tailored coverage solutions that meet your needs is crucial.

2. Overlooking Business Interruption Insurance

Another common oversight is not considering business interruption insurance. This coverage provides financial support when unforeseen events like natural disasters or prolonged power outages force you to stop work temporarily.

Without business interruption insurance, you risk losing significant income during these periods due to lost bookings and client cancellations—revenue that might be difficult to recoup once you’re up and running again.

To safeguard the longevity of your business, ensure that you have adequate business interruption insurance alongside other key policies.

3. Skimping on Property and Contents Cover

When insuring their salons, many hairdressers focus solely on covering the building itself without giving proper attention to its contents—the tools and equipment needed for daily operations. Salon equipment can be costly to replace if damaged or stolen; hence securing ample property and equipment insurance is paramount.

To determine suitable limits for this coverage type, take stock of all your items—including chairs, styling stations, and mirrors—and evaluate their replacement value accurately.

4. Neglecting Employers’ Liability Insurance

Suppose you employ staff. In that case, employers’ liability insurance is a must-have as it covers claims related to employee injuries or illnesses that result from their work duties. Failing to obtain this coverage can expose you and your business to costly legal battles in the event of an accident or injury at work.

Employers’ liability insurance provides financial protection against such claims. It demonstrates a commitment to ensuring a safe working environment for your team members—a crucial aspect of maintaining strong employee retention rates in the competitive beauty industry.

5. Choosing Inadequate Public Liability Coverage

Public liability insurance is another essential policy for hairdressers. However, selecting insufficient coverage can expose you financially if a client suffers an injury. To avoid this mistake, evaluate the risks associated with your operations, consider factors like foot traffic and potential hazards (e.g., wet floors), and choose a public liability policy tailored accordingly.

6. Failing To Cover Mobile Hairdresser Risks

For those who offer mobile hairdressing services, overlooking unique risks associated with offsite appointments can be detrimental. Travelling between locations presents additional challenges like equipment theft from vehicles or accidents while en route—ensure these risks are fully covered within your existing policies or through specialised mobile hairdresser insurance options.

7. Ignoring Treatment Liability Risks

It’s also relevant to note that there’s an increasing frequency of personal injury claims. As beauty treatments evolve and become more complex, it’s crucial not to ignore treatment-specific liability exposure.

  1. Not Reviewing Insurance Coverage Annually

Insurance needs are hardly static—they change as your business does. Failing to review and update coverage annually can expose you to emerging risks or overpaying for unnecessary insurance. Plan annual check-ups with your insurance agent to ensure policies remain relevant, comprehensive, and cost-effective.

9. Omitting Legal Expenses Protection 

Many hairdressers overlook the importance of legal expense protection in their overall insurance package. This specialised coverage helps cover costs related to various legal disputes, including employee claims, contract disagreements, or regulatory investigations. This valuable safeguard allows you peace of mind when navigating complex legal situations.

10. Forgetting Cyber Insurance for Online Services

In today’s digital age, it’s critical not to forget cyber insurance for online booking systems or eCommerce platforms that store clients’ personal information. Cyber attacks targeting small businesses have steadily risen; securing this coverage type protects against financial fallout from data breaches or system disruptions due to malicious activity.

11… Not Choosing Salon Saver!

Navigating the insurance landscape as a hairdresser can be challenging, with potential pitfalls.

With so many insurance options to consider and various risks associated with your profession, it’s easy to fall into traps—choosing incorrect coverage, underinsuring your business, or neglecting critical policy features.

These mistakes could expose you to significant financial risks, interrupt your business, and harm your client relationships.

Thankfully, these pitfalls can be successfully avoided. By being aware of common insurance mistakes and understanding how to prevent them, you can secure reliable hairdressing insurance for your business, build a safe environment for your clients, and ensure your peace of mind.

Dean Laming

Dean Laming is a Chartered Insurance Broker with more than 25 years insurance experience. Through various underwriting, operational and management roles, Dean has built up extensive knowledge of the hair and beauty sector and is now Managing Director of Salon Saver, part of the wider Henry Seymour Group.

All articles by Dean Laming

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