6 Reasons Why Salons Need Insurance: A Business Owner’s Perspective

By Dean Laming on June 12th, 2023

6 Reasons Why Salons Need Insurance: A Business Owner’s Perspective

In an industry where client satisfaction is paramount, it’s crucial to ensure that every aspect of your salon is protected – from the premises itself to the services provided by your skilled team. Unexpected events, accidents, and setbacks can occur even in the most careful and well-managed salons. This is where insurance steps in.

We delve into six reasons salon insurance is important, exploring how comprehensive coverage protects your investment and raises your reputation as a responsible salon owner.

1. Protection Against Liability Claims

Liability claims can arise from various circumstances that may occur within a salon, such as accidents or injuries to clients or employees due to salon equipment malfunction or slip-and-fall accidents. The main types of liability insurance are:

Public Liability Insurance

A cornerstone of this protection is public liability insurance, which covers salon owners if a customer or member of the public is injured or their property is damaged while on the salon premises or due to the salon’s operations. For instance, if a client trips over an electrical cord, they might lodge a compensation claim. With public liability insurance in place, the salon owner can address such claims without the financial outlay.

Employers’ Liability Insurance

Employers’ liability insurance is a legal requirement for any salon owner who employs staff. This insurance protects the owner against compensation claims made by employees who might get injured or ill because of their work. Employers’ liability insurance ensures the salon owner is covered against such compensation claims, meeting legal responsibilities and keeping the business stable.

Product Liability Insurance

Given that salons often use and sell a selection of products, product liability insurance becomes essential. It protects business owners if a client or any other person claims that a product sold or used by the salon business caused them harm.

2. Coverage for Property Damage

Property damage is an unfortunate reality faced by many businesses across various industries – salons included. Fires caused by faulty electrical appliances or wiring can devastate a salon’s interior, while break-ins resulting in theft or vandalism may leave both employees and customers feeling unsafe at the salon.

A policy that includes property insurance helps mitigate these risks by providing funds needed for repairs or replacement of damaged items from such events.

3. Business Interruption Coverage

Unforeseen events like natural disasters such as floods or fires can cause significant damage to a beauty salon’s infrastructure, forcing it to close down temporarily while repairs are made.

Business interruption insurance provides financial assistance to cover ongoing expenses, like salaries, rent, and utilities, when the salon cannot operate. This type of insurance helps ensure the business’s survival during difficult times and allows it to resume operations once it’s safe and feasible to do so.

4. Professional Indemnity Insurance

Professional indemnity cover, also known as professional liability insurance or professional treatment risk insurance, is especially important for salon owners due to the nature of the services. Clients trust professionals with various beauty treatments involving potentially harmful chemicals or delicate procedures.

However, mistakes can happen, and if a client suffers harm as a result, they may file a claim of professional liability. Without proper insurance coverage, salon owners could face substantial expenses, making professional indemnity insurance essential protection for their businesses.

5. Legal Expenses Coverage

Legal fees can quickly accumulate when dealing with any legal disputes stemming from beauty salon operations. Having a policy that includes legal expenses insurance for all your legal costs allows a beauty salon owner to focus on running their business instead of worrying about how to cover mounting legal defense fees.

6. Protection for Equipment and Stock

Salons invest a considerable amount of money in equipment and stock required to provide professional services, from high-end hairdressing chairs and styling tools to expensive beauty products used for treatments.

These valuable investments are at risk of being damaged or stolen without proper insurance coverage in place. This makes it vital for business owners to ensure they have appropriate policies protecting their assets against potential risks associated with loss or damage.

Get Unbeatable Salon Insurance from Salon Saver

As a salon owner, it’s essential to recognise the risks that come with running a business. From liability claims to property damage, these hazards can threaten the success of your salon. That’s why investing in comprehensive insurance tailored to your unique needs is a necessity.

Salon Saver’s salon insurance is designed specifically with these requirements in mind – offering core insurance covers needed for safeguarding businesses without unnecessary added costs often associated with traditional insurance offerings. Contact us today to learn more on how we can protect your salon.

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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