10 Things to Look for in Good Hairdressing Insurance

By Dean Laming on July 28th, 2023

Picture this scenario: you’re midway through a complex hair colouring process for your favourite client when an allergic reaction occurs. Now your client is threatening legal action.

The legal fees could be substantial, not to mention the potential damage to your hard-earned reputation.

As a hairdresser, dealing with such unforeseen situations can be distracting–after all, you have a business to run. But the potential for severe financial liability and reputational harm is real and palpable.

A comprehensive hairdressing insurance plan can shield you from these threatening circumstances, ensuring your peace of mind and business continuity.

This article will guide you on what to look for in good hairdressing insurance.

1. Public Liability Coverage

One of the essential insurance components for hairdressing businesses is comprehensive public liability coverage. This insurance protects your business from claims made against it due to injury or property damage caused by your operations.

An increase in public liability claims is often associated with a rise in foot traffic by specialist insurers. So if a client slips and falls on a wet floor in the busy salon you offer your services, you may be liable for any medical expenses.

A good hairdressing insurance policy will offer at least £1 million in public liability coverage, although higher limits are available depending on the size of your business and potential risk exposure. It’s crucial to ensure that this policy aspect is robust enough to cover any potential legal costs associated with defending against such claims.

2. Employers’ Liability Insurance

You must legally have employers’ liability insurance in place as an employer.

This covers you for claims arising from employee injuries or illnesses sustained during their employment with your business. Employees may seek compensation if they develop a health issue related to their work (e.g., back pain from prolonged standing).

The minimum requirement for employers’ liability insurance is typically £5 million; however, many insurers offer up to £10 million as standard practice.

Be sure that this coverage level meets your legal obligations and adequately shields your business from financial risks associated with employee-related incidents.

3. Business Interruption and Loss of Income Protection

Unexpected events like fires or floods can disrupt normal operations and lead to significant revenue loss for hair salons. A quality hairdresser’s insurance policy should include adequate protection against these interruptions by providing loss-of-income reimbursement while repairs are being made or alternative premises are found.

When considering various policies, consider offering indemnity periods long enough (usually 12-24 months), allowing ample time for recovery without compromising ongoing expenses such as rent and staff wages.

4. Equipment and Stock Cover

Hairdressers invest heavily in tools, equipment, and stock—everything from hairdryers to styling products. Insuring these items against theft, damage, or loss is crucial for maintaining peace of mind and financial stability. A comprehensive policy should include coverage for the replacement cost of your salon’s equipment and inventory.

However, it’s important to note that different insurance providers may have varying definitions of “equipment.” Ensure you understand precisely what the policy covers so you can confidently proceed with your business operations without concern.

5. Treatment Risk and Malpractice Coverage

Despite years of training and experience, mistakes happen in the beauty industry—whether through an accidental cut or a reaction to certain treatments like dye application. It’s also key to note the upward trend in hairdresser injury claims.

Your insurance policy must cover potential claims from treatment-related incidents and professional malpractice allegations.

A suitable policy will protect direct injuries and any consequential damages clients incur following treatments, such as lost wages or medical expenses related to emotional distress.

6. Personal Accident Insurance for Hairdressers

While workplace safety measures are critical in preventing accidents, there remains a risk of personal injury while working in a hair salon setting. Personal accident insurance financially supports hairdressers who become temporarily unable to work due to accidents sustained on the job.

This additional coverage compensates for income losses during recovery periods, so you don’t have to worry about meeting basic living expenses while recuperating.

7. Legal Expenses and Representation

Disputes are an unfortunate part of running any business; thus, accessing legal advice and representation when needed is invaluable.

Quality hairdressing insurance policies typically cover legal expenses relating to employment disputes or defence against liability claims made by customers or suppliers.

Ensure that sufficient levels of coverage are included within this aspect of the policy so that, if required, you can obtain appropriate legal assistance without breaking the bank.

8. Seasonal Increases and Extensions

The nature of many hairdressing businesses means there may be periods of higher revenue (e.g., the Christmas season) or temporary expansions such as outdoor events. It’s crucial to have an insurance policy flexible enough to accommodate these fluctuations and extensions.

Look for options to increase coverage during peak seasons or specific events, ensuring your business remains protected no matter how it evolves.

9. Flexible Payment Options

Running a business can involve significant expenses, so your hairdresser’s insurance policy must offer flexibility regarding premium payments. Many insurers provide options such as monthly instalments or annual premiums with discounts for early settlement.

Access to various payment methods allows you to choose the most suitable option depending on your financial situation while maintaining comprehensive coverage.

10. Tailored Policies for Your Business’s Needs

Every salon is unique, which means its insurance needs will differ from others in various ways.

The looming threat of accidents and legal complications can cast a constant shadow of uncertainty over your business.

And a single incident, like damage to your equipment or an unforeseen liability claim, can quickly become a financial nightmare.

But it doesn’t have to be this way.

A good insurer will work closely with you to customise a policy addressing all potential risks related to your business operations. This tailored approach ensures you receive the best protection without spending more than necessary on unnecessary coverages.

By securing dependable hairdressing insurance, you ultimately equip yourself with a protective shield against unforeseen setbacks.

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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