Common Salon Insurance Mistakes and How to Avoid Them

By Darragh Timlin on June 15th, 2023

One of the trickiest parts of being a salon owner is trying to juggle the demands of running a successful business. Amidst the hustle and bustle, it’s easy to overlook crucial aspects like insurance coverage. Unfortunately, though, neglecting your salon insurance can lead to disastrous consequences for your business.

Are you confident that your current policy provides adequate protection against unforeseen events? When was the last time you updated your insurance coverage? Do you have safeguards in place for potential business interruptions or public liability claims?

If these questions leave you feeling uncertain, read on. In this guide, we’ll explore seven common salon insurance mistakes and provide valuable tips on how to avoid them, ensuring peace of mind for both yourself and your clients.

1. Failing to Obtain Adequate Salon Coverage

One of the most common mistakes salon owners make is not obtaining adequate insurance coverage for their business. While this may be a genuine oversight, many salon owners do this in an attempt to save money, by choosing the cheapest policy possible. Unfortunately, this can leave your salon and spa vulnerable to financial losses if an accident or damage occurs.

To protect your business, it’s crucial to obtain comprehensive insurance that covers all aspects of potential risk. When selecting a policy, consider factors such as the size and location of your salon, types of services offered, and any specialised equipment you have in place. It’s essential to evaluate the risks involved in operating a salon or spa properly and choose an insurance plan tailored to your specific needs.

2. Neglecting to Update Your Salon Insurance Policy Regularly

As your business grows and evolves over time, so do the risks associated with it. Therefore, it’s essential to review and update your salon insurance policy regularly – ideally once every year, or whenever significant changes occur within your operations. You’ll need to update your insurance provider on all aspects of your business, from the services you provide to your annual turnover.

Neglecting this vital aspect could leave you exposed to potential lawsuits or damages not covered by outdated policies. Stay on top of industry trends and new service offerings that may require additional protection or adjustments to existing coverages.

3. Not Insuring Against Business Interruption Risks

Business interruption risks can arise from a plethora of unforeseen circumstances, such as natural disasters, power outages, or even temporary closures due to fire or flood. Many of these situations are impossible to predict, and they can all potentially lead to lost revenue during downtime periods.

Many salon owners overlook this important aspect when purchasing their insurance policies, believing the chance of business interruption to be small. But the potential risks of not taking out this type of coverage are huge – could you afford to absorb the cost of not opening your salon for a few days? A week? A month or more? To ensure the long-term success of your business, it’s worth considering.

4. Overlooking the Importance of Public Liability Insurance

Public liability insurance is not a legal requirement, so many salon owners disregard it in the hopes of saving money. However, it is a critical type of insurance for any customer-facing business such as a hair or beauty salon. It provides coverage for claims made by clients who suffer injuries or property damage while on your premises.

Failing to have proper public liability coverage could result in costly legal battles should accidents happen at your establishment – putting both finances and reputation at risk.

5. Ignoring the Need for Professional Indemnity or Treatment Risk Insurance

As a salon or spa owner, your professional expertise is an essential aspect of your business. However, errors can happen – and when they do, professional indemnity insurance can protect you from potential legal complications.

This type of coverage ensures that if a client suffers loss or damage due to negligence or incorrect treatment advice, the insurance provider will handle any compensation claims. Your employees may be fully trained and knowledgeable, but they are only human – mistakes can happen.

6. Not Considering Products Liability Insurance

If you supply or sell any kind of products in your salon – such as moisturisers, hair sprays, tan accelerators or anything else – it’s important to take out products liability insurance. This kind of coverage protects you against any injuries or damage caused by an item you sold or provided.

Many salon owners make the mistake of believing that their public liability insurance would automatically take care of this kind of claim. However, this is not necessarily the case. For example, while it may cover you for a customer slipping and falling on your salon floor, it may not cover a claim made by someone who suffered a reaction to a product purchased in your salon.

By failing to consider products liability insurance, salon owners could face serious consequences such as fines and lawsuits resulting from unsafe products.

7. Disregarding Property and Contents Insurance

Property and contents insurance should never be overlooked when considering overall business protection. This type of policy covers damages to your salon and its contents – including expensive equipment such as styling stations, chairs and appliances – in the event of theft, fire or natural disasters.

Having comprehensive property and contents coverage will ensure that even if disaster strikes, rebuilding won’t be financially crippling for your business.

Choose Salon Saver

We know that navigating the ins and outs of salon insurance may feel overwhelming. At Salon Saver, our objective is simple – we want to provide all salon owners with peace of mind, knowing that every aspect of their business is protected financially. This leaves you free to focus on running your salon, growing your business and achieving success without worrying about unnecessary risks along the way.

We specialise in comprehensive, low-cost salon insurance tailored specifically to meet the needs of your business. Contact us today to find out more and obtain a free quote.


Darragh Timlin

With over 25 years’ experience, Darragh is an expert in all things insurance. Starting his career in commercial property underwriting, Darragh has worked for a number of global insurers and is now Managing Director of Salon Saver, part of the wider Henry Seymour Group.

All articles by Darragh Timlin

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