What Does Cheap Hairdressing Insurance Not Cover?

There’s nothing quite as disheartening as realising that the insurance policy you thought would protect your business falls short when it’s time to make a claim.

From employer’s liability exclusions to personal accident limitations, this article highlights policy limitations and exclusions, helping you make an informed decision about what’s really important regarding adequate insurance coverage. So, if you’re looking for a complete hairdressing insurance policy that truly covers every eventuality, you need to read this post!

1. Essential Vs. Non-Essential Coverage

In the world of hairdressing insurance, there is a fine line between essential and non-essential coverage. It’s important to understand what cheap hairdressing insurance policies might not cover so that you can decide on the type of coverage your salon needs.

Essential coverage typically includes employer’s liability, public liability, professional indemnity, equipment and stock protection, business interruption provisions, legal expenses support and personal accident or illness compensation. However, each policy may vary regarding the extent of this core protection.

On the other hand, non-essential coverage refers to additional features that are nice to have but not crucial for safeguarding your hairdressing business. These extras can include seasonal increases in coverage limits or temporary staff inclusion.

2. Employer’s Liability Exclusions

A primary concern for any salon owner is their responsibility towards employees. While cheap hairdressing insurance may provide some level of employer’s liability protection against claims from injured staff members or those suffering work-related illnesses, this cover might exclude specific circumstances such as voluntary workers or apprenticeships without proper documentation in place.

It’s against the law not to have employers’ liability insurance, and you could be fined if you don’t have a policy in place.

Furthermore, it’s essential to verify whether your chosen policy offers adequate financial protection against substantial injury claims—which could be damaging if left uncovered by insufficient insurance limits.

3. Public Liability Limitations

Public liability insurance helps protect your business from claims made by third parties if they suffer injuries or property damage due to your negligence within the salon environment—like slips and falls caused by wet floors after a recent shampoo service.

However, cheaper policies might put restrictive caps on maximum claim payouts per incident or year overall while excluding specific scenarios like treatments provided outside the salon premises (mobile services) without prior consent from insurers.

4. Professional Indemnity Gaps

Providing expert advice and consultations is part and parcel of running a successful hairdressing establishment, but clients may hold you accountable when things go wrong with styling decisions. Professional indemnity insurance helps protect against such claims, but cheaper policies might leave gaps in coverage if they don’t include protection for specific treatments or lack coverage for trainee employees without proper supervision.

5. Equipment and Stock Coverage Shortcomings

Your salon’s valuable equipment and stock need adequate protection from risks like theft, fire or flood damage. However, cheap hairdressing policies might skimp on this essential cover by only providing basic compensation with low limits or applying strict conditions on the type of equipment eligible under the policy terms.

6. Business Interruption Omissions

If unforeseen circumstances force your salon to cease operations temporarily—such as a natural disaster or extended property repairs—business interruption insurance can provide financial assistance during that downtime period. But more affordable policies may not offer this indispensable element of protection altogether, leaving you with no safety net in times of crisis.

7. Legal Expenses Discrepancies

Legal disputes can arise unexpectedly and quickly become costly for any hairdressing business owner. While some budget-friendly insurance options will cover legal expenses up to certain limits, scrutinising policy details thoroughly is crucial to ensure relevant scenarios are included, like employee disputes or supplier contract disagreements.

8. Personal Accident and Illness Limitations

Protecting yourself as a salon owner is vital too—which is where personal accident and illness insurance comes into play by offering financial support if you cannot work due to injury or sickness. Unfortunately, cheap policy alternatives may feature limited payouts over shorter periods than their comprehensive counterparts, potentially putting you under strain should an incapacitating event occur.

9. Seasonal Increases and Temporary Staff

During peak seasons—like holidays—salons often experience increased demand leading them to employ temporary staff members while also stocking up on additional inventory resources needed for extra client appointments throughout those busy periods.

Unfortunately, these factors aren’t usually factored into inexpensive insurance policies causing potential issues if your temporary personnel aren’t adequately covered or you suffer a loss of increased stock during these high-demand times.

10. Unoccupied Premises and Theft Restrictions

Finally, it’s essential to consider the limitations surrounding unoccupied premises and theft restrictions within cheap hairdressing insurance policies. Many insurers will require you to inform them of any extended periods when your salon is left unattended—like vacations or renovations—which could result in reduced coverage for incidents occurring during those times.

The Bottom Line

Cheap hairdressing insurance isn’t the bargain it first appears to be. The gaps in coverage can leave you exposed and vulnerable to the exact risks you sought to avoid.

Take time to analyse your insurance policy. Understand the potential drawbacks, and assess whether cheaper alternatives meet your specific needs before deciding on coverage options.

Ultimately, don’t compromise on reliable hairdressing insurance to save a little money in the short term. Cheap hairdressing insurance is more expensive in the long run.

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