What’s the Difference Between Cheap and Expensive Hairdressing Insurance?

By Dean Laming on July 2nd, 2023

The world of hairdressing insurance can feel overwhelming with a myriad of options and price points to consider. But how do you know whether you should opt for the more affordable coverage or pay a premium fee for a seemingly better policy?

While an expensive policy may seem alluring, it’s not always the best option. It might be padded with non-essential add-ons that unnecessarily inflate your premium without adding value to your coverage. But a cheaper policy may leave you short of coverage.

The real trick lies in identifying the ideal insurance partner and striking a balance that suits both your coverage needs and your budget. So, read on to explore the fundamental differences between cheap and expensive hairdressing insurance…

1. Types of Hairdressing Insurance: Comparing Cheap and Expensive Options

When it comes to hairdressing insurance, various types of policies are available in the market. Some may be more affordable, while others can be pretty expensive.

But what exactly sets them apart?

The main difference between cheap and expensive hairdressing insurance options lies in the extent of coverage and benefits they provide.

Cheap insurance policies usually offer basic coverages such as public liability, employers’ liability, and treatment risk. They tend to have lower limits and may not include certain additional benefits that could be beneficial for your business.

On the other hand, expensive insurance policies generally offer a more comprehensive range of coverages, including business interruption, legal expenses, stock & equipment protection, and even cyber liability.

2. Coverage Differences: What’s Included and What’s Not

As mentioned earlier, the primary factor distinguishing cheap from expensive hairdressing insurance is the extent of coverage each option provides. While cheaper policies typically provide essential protections like public liability or employers’ liability coverage, they might not offer other vital coverages like property damage or theft.

Expensive policies are known for providing an extensive range of coverages that cater to virtually all aspects of your business operations—this could include specialised treatments, mobile services or salon-specific risks (such as colour bar exposures). It’s crucial to carefully assess your needs based on your unique circumstances and decide which option best suits your requirements.

3. Desired Protection: Establishing Your Hairdressing Insurance Needs

Before settling on a policy type—either cheap or expensive—it’s vital to analyse your specific needs as a hairdresser to decide which level of protection you require.

Consider factors such as:

  • Size & nature of your business
  • Number/type of treatments offered
  • Type/size/complexity/age/value/location/business model
  • Potential liabilities (e.g., clients slipping on wet floors or reactions to treatments)
  • Any regulatory requirements/industry standards you must adhere to

4. Impact of Excess on Premium Costs: How Much You Pay Out-of-Pocket

Excess refers to the amount you agree to pay out-of-pocket before your insurer covers the remaining costs in case of a claim. This is important when comparing cheap and expensive hairdressing insurance options, as it directly impacts your premium costs.

Generally, cheaper policies have higher excess amounts, meaning you’ll need to pay more upfront should a claim arise.

Conversely, expensive policies tend to have lower excess amounts—which means less out-of-pocket expense for you but typically results in higher premiums.

It’s essential to carefully weigh these costs against potential savings on premiums when choosing between cheap and expensive insurance options.

5. Assessing Customer Service Quality and Support: A Crucial Consideration

Whether an insurance policy is cheap or expensive, customer service quality and support are crucial factors that shouldn’t be overlooked during your decision-making process.

Policies with excellent customer service can provide invaluable assistance in case of claims or any related issues—even if they come at a slightly steeper price point.

Check online reviews, seek recommendations from other industry professionals, and assess insurers’ responsiveness during initial inquiries before committing yourself financially.

6. Legal Requirements and Industry Standards: Meeting UK Regulations

In the UK, employers’ liability coverage is legally mandatory for businesses with employees (including apprentices). An instance of an employee claim can be seen in the case of a hairdresser from Melbourne who attributed her irreversible wrist injury to her heavy workload—a claim her employer has to face.

Public liability insurance isn’t lawfully obligatory but is recommended due to its protection against unforeseen incidents involving third parties—like injuries sustained by clients within your premises or property damage caused during treatments/services.

7. Potential Hidden Costs and Benefits: Digging Deeper Into Insurance Policies

When evaluating both cheap & expensive hairdressing insurance options, don’t forget hidden costs/benefits that may not be immediately apparent. For example, some policies might cover legal expenses relating to employee disputes or accidental breaches of data protection laws—which can save you substantial sums over time.

Other benefits like access to complimentary helplines for HR/health & safety/legal advice may also be included in certain policies—providing added value/support during challenging situations.

8. Professional Liability Insurance: Comparing Cheap Versus Expensive

Professional liability insurance is another vital consideration when comparing cheap and expensive hairdressing insurance options. This coverage protects your business against claims arising from injury or breach of professional duty during your services.

Cheaper policies may not include professional liability as standard and may have lower limits, potentially exposing you to costly claims if an issue arises. Equally important is the rise in personal injury claims. More expensive policies tend to offer higher levels of protection, including this valuable coverage as a built-in feature.

9. Reputation Matters: Background Research on Insurance Providers

Considering the price and researching prospective insurers’ reputations is essential before purchasing a policy. Check online reviews and consult other industry professionals for insights into the quality and reliability of their offerings/services/experiences—ensuring peace of mind knowing that your chosen insurer is reputable & trustworthy.

10. Claims Handling Procedure: What to Expect in Different Price Brackets

Finally, it’s essential to understand how different insurers handle claims within each respective price bracket (i.e., cheap versus expensive).

While more inexpensive providers might offer more affordable upfront costs—they could present difficulties when filing claims; slow response times or low claim approval rates are potential concerns when choosing budget-friendly options.

Conversely, more expensive providers generally invest in efficient claim-processing systems/comprehensive support networks (including 24/7 emergency assistance)—making it easier should you ever need them during challenging moments.

Choose Salon Saver for Affordable Hairdressing Insurance

In conclusion, there’s no one-size-fits-all answer when it comes to choosing between cheap and expensive hairdressing insurance policies. Factors such as coverage needs, desired protections, excess costs, customer service quality and more must be carefully considered – allowing you to strike a balance that suits your unique circumstances.

At Salon Saver, our mission is to provide affordable insurance for hairdressers seeking budget-friendly options without compromising essential coverages. Through our comprehensive approach and commitment to delivering exceptional service, we’re proud to help hairdressers nationwide secure peace-of-mind, knowing their enterprises are safeguarded against unforeseen risks, challenges, and setbacks. Contact us today to learn more.

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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