10 Things to Look For in Good Salon Insurance

By Dean Laming on July 7th, 2023

10 Things to Look for in Good Salon Insurance

Salon business owners work tirelessly to create a welcoming environment for clients to enjoy top-notch hair and beauty treatments. But there’s more to running a business than the services provided. You also need to make sure you’re protected by the right salon insurance – specifically, a comprehensive policy that covers all the potential risks and financial losses associated with running a beauty salon.

But with so many providers and options to choose from, how do you know what makes for good beauty salon insurance? We explore 10 essential factors all salon owners should consider when choosing an insurance policy.

1. Comprehensive Commercial Property Insurance

First and foremost, a good salon insurance policy should offer comprehensive coverage to protect your business premises from a variety of risks that you may face. This includes commercial property insurance.

What Is Commercial Property Insurance?

This form of coverage protects salon owners from potential losses related to their physical property. Commercial property insurance covers the building itself (if owned by the salon operator) and its contents against risks such as fire, theft, flooding, and accidental damage.

In the event of unforeseen incidents, it ensures that businesses can recover and rebuild without facing substantial financial setbacks. This type of beauty salon insurance is crucial for business owners to protect their investments and ensure continuity of operations.

2. Adequate Public Liability Cover

As a salon owner, one of your primary concerns is making sure anyone who enters your beauty or hair salon is safe and well taken care of. Good salon insurance should include public liability cover.

What Is Public Liability Insurance?

This type of salon insurance provides coverage against claims made by clients or members of the public who have suffered injuries while on the salon premises.

This type of insurance is vital for salon owners as it offers protection in scenarios such as a client slipping on a wet floor or any other potential accidents in the beauty salon environment.

Public liability insurance covers legal fees and compensation claims arising from such incidents. This ensures that your business can continue running without any major financial setbacks.

3. Employers’ Liability Insurance

If you employ staff at your salon, it’s crucial to have employers’ liability insurance in place.

What Is Employers’ Liability Insurance?

This type of insurance will cover you if an employee decides to sue following an accident or illness sustained on the job or as a result of their work duties. For instance, if a stylist develops a skin condition from handling certain products or a receptionist slips and injures themselves on the salon floor, employers’ liability insurance would cover the legal fees and any compensation awarded.

Employer’s liability insurance is a legal requirement in the UK – you could face hefty fines if you do not take out a suitable policy. It applies to any staff, whether full-time, part-time, or even apprentices.

4. Professional Treatment Risk Insurance for Salon Treatments

All salons offer specialised beauty treatments of some kind – hair colouring, waxing, facials, and so on. There are some additional risks associated with these procedures which public liability policies might not cover fully. If you want full protection, you will need professional treatment risk insurance.

What Is Professional Treatment Risk Insurance?

Often referred to as ‘treatment risk cover’ or ‘treatment liability insurance’, professional treatment risk insurance is specifically designed to protect salon professionals against claims arising from their treatments, such as UV tanning and manicures. If a client alleges that they have suffered personal injury, harm, or dissatisfaction due to a service, treatment, or advice given by the salon or its employees, this insurance offers coverage.

For instance, if a client reacts adversely to a hair dye or facial treatment, professional indemnity insurance would cover the legal costs and any potential compensation awarded

5. Business Interruption Insurance in Case of Unexpected Events

If unexpected events lead to the temporary closure of your beauty or hair salon, business interruption protection is vital.

What Is Business Interruption Insurance?

This type of coverage provides financial assistance during the period when your salon is unable to operate. If, for instance, a beauty salon is forced to close temporarily due to a fire, flood, or other unforeseen event, this insurance would cover the lost income during the closure period.

It aims to help you cover overheads such as rent and employee wages while you work towards reopening. Business interruption insurance can also cover additional costs and expenses incurred, such as rent for a temporary location or increased operating expenses.

6. Product Liability Insurance for Salons that Sell Goods

If you sell products in your beauty or hair salon, such as facial moisturisers, hair sprays, shampoos, clothing, or jewellery, you should also ensure your policy includes product liability cover.

What Is Product Liability Insurance?

This type of insurance protects you against claims made by customers who experience harm or loss due to a product you supplied. If a customer experiences an adverse reaction or injury from a hair product or skincare item, this insurance will cover the legal costs and any potential compensation awarded.

Importantly, you don’t need to have manufactured the goods yourself – you may be held liable simply for selling a faulty product.

7. Contents and Stock Cover to Safeguard Your Assets

As well as your beauty salon itself, your equipment, furniture, and product stock are valuable assets that also need protection. This is where contents and stock cover comes in.

What Is Contents and Stock Cover?

Insurance policies offering contents and stock cover ensure reimbursement for damaged or stolen items essential for running your business effectively. This includes everything from expensive hairdressing tools to the hair and beauty merchandise on your shelves.

In the event of unforeseen incidents like theft, vandalism, fire, or water damage, this type of beauty salon insurance ensures that salon owners can replace or repair their valuable contents and stock without bearing the financial burden themselves.

8. Flexible Payment Options Tailored to Your Budget

Finances play a critical role in determining which beauty or hair salon insurance policy will work best for you. However, it’s important not to sacrifice essential cover or choose an inadequate policy simply to save money, as it may end up costing you more in the long run.

Shop around and look out for insurers who offer flexible payment options tailored to meet your budgetary requirements, such as monthly rather than annual premiums. Having the ability to spread the cost of insurance premiums over time or choose a payment schedule that aligns with your business’s revenue patterns can alleviate potential financial pressures.

9. Industry Expertise in Salon Insurance

Choosing a beauty or hairdressing insurance provider with experience in the industry makes all the difference. Their understanding of specific risks, challenges, and vulnerabilities beauty salons face ensures comprehensive policies suited to this particular sector.

Moreover, insurers with industry expertise can offer relevant advice, make informed recommendations, and respond effectively to claims. Always select a company that specialises in beauty salon insurance rather than a generic insurance provider that may not fully appreciate the specifics of your beauty salon business and services.

10. Excellent Customer Support and Claims Handling Process

Lastly, good customer service plays an integral part in ensuring smooth communication between beauty or hair salon owners and the insurer throughout claims handling processes.

Excellent support means quick responses to queries as well as timely payouts following claims made against your policy. Check reviews from other salon owners to make sure you choose a reputable and highly-rated insurance company.

Choose Specialised Salon Insurance for Salon Owners

By considering these 10 essential aspects when shopping for salon insurance, you can ensure proper financial protection, leaving you free to focus on running and growing your beauty business.

If you’re looking for good salon owners’ insurance, Salon Saver is here. We are mindful of beauty salon insurance costs and specialise in providing affordable protection through comprehensive insurance plans designed specifically for salon businesses. Contact us today to find out how we can help!

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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