What Does Cheap Salon Insurance Not Cover?

By Darragh Timlin on June 30th, 2023

Have you ever wondered what might be missing from that cheap salon insurance policy you’ve been eyeing? While it’s tempting to save money on insurance premiums, it’s crucial to understand the potential risks and gaps in coverage that could leave your business exposed.

In this blog post, we’ll delve into seven key areas where cheap salon insurance may fall short: limited professional liability coverage, insufficient public liability protection, exclusion of employer’s liability insurance, inadequate business interruption coverage, lack of stock and contents cover, absence of legal expenses insurance, and no personal accident or illness protection. So before you sign on the dotted line for that budget-friendly policy, read on to ensure you’re making an informed decision about safeguarding your livelihood…

1. Limited Professional Liability Coverage

Cheap salon insurance may not provide comprehensive professional liability coverage, which is essential for any salon business. This type of coverage protects your business against claims arising from errors or omissions made by you or your employees while providing professional services to clients.

A limited policy might only offer a low limit of liability, meaning that if a claim is filed against your business for damages caused by negligent service, the amount of compensation offered may not be enough to cover the full extent of the damage. In some cases, there might even be specific exclusions related to certain treatments or services that are uncovered in cheap policies.

To avoid this risk, it’s essential to thoroughly evaluate any potential insurance policy and make sure it offers adequate professional liability coverage for all aspects of your salon operations.

2. Insufficient Public Liability Protection

Public liability protection is another vital aspect of a comprehensive salon insurance package. It covers claims made by third parties who suffer injury or property damage as a result of your business activities.

Cheap policies might offer lower limits on public liability protection than more expensive options or exclude certain incidents from coverage altogether. This can leave you vulnerable should an accident occur at your premises resulting in significant financial loss.

Ensure that the public liability protection included in your chosen salon insurance offers sufficient limits and does not contain any unreasonable exclusions that could put you at risk.

3. Exclusion Of Employer’s Liability Insurance

Employer’s liability insurance is necessary when employing staff members within your salon business. It protects you against claims brought by employees who suffer injury or illness due to their work with you.

This type of insurance is compulsory, so no matter how cheap your insurance package, it should be included. So, when selecting an affordable policy for your salon, ensure it includes employer’s liability coverage suitable for the size and nature of your workforce.

4. Inadequate Business Interruption Coverage

Business interruption insurance is essential for any salon business that relies on daily footfall and revenue. This coverage protects you against losses incurred due to unexpected closures or downtime caused by factors such as fire, flood, or other disasters.

Cheap salon policies may not offer adequate business interruption protection, potentially leaving your business exposed in the event of a prolonged closure. Ensure your chosen policy provides sufficient coverage for potential lost revenue and ensures your business can continue operating during difficult times.

5. Lack Of Stock And Contents Cover

Stock and contents cover is important for salons who hold valuable equipment, products, and furnishings within their premises. This type of insurance protects against loss or damage specifically of stock resulting from theft, vandalism, fire, or flood.

Salon businesses that opt for cheap insurance may struggle to find comprehensive stock and content coverage included in their policy. To ensure the safety of valuable assets within your salon space does not compromise the affordability of your policy.

6. Absence Of Legal Expenses Insurance

Legal expenses insurance covers costs associated with disputes arising from employment issues, contract disputes or other legal matters that can significantly impact a small business financially. It’s essential to consider whether a cheap salon insurance policy includes legal expenses coverage as this can save you significant financial stress should an issue arise requiring legal representation.

7. No Personal Accident Or Illness Protection

Personal accident and illness protection are often overlooked aspects of salon insurance but are invaluable should you become unable to work due to injury or illness sustained while running your business.

Many cheap policies do not include personal accident or illness protection by default; it’s crucial to inquire about adding this onto any potential policy before committing fully.

Salon Saver understands the importance of providing low-cost core protection without sacrificing quality when it comes to insuring businesses like yours. By carefully evaluating all aspects of affordable salon insurance policies – including professional liability coverage limits, public liability exclusions employer’s liability needs – we ensure our clients receive the coverage they need without paying for unnecessary extras. Join us in embracing a new wave of salon insurance that puts your business’s safety and financial stability first, allowing you to focus on achieving your ambitions with peace of mind.

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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