The different risks of owning a beauty salon and how salon owners can protect themselves
Beauty salons are hugely popular in the UK. Only three years ago, hair and beauty salons were the top two business types1 keeping the high street buoyant. There were almost 43,0002 salons listed as providing hair, nail, face and body treatments in the UK in 2019.
While COVID-19 has had a massive impact on the profession, all types of salons had reopened at the time of writing. If the number of pre-booked appointments is anything to go by, recovery will hopefully be swift: during the pandemic, some salons reported waiting lists of 2,000 people.3
For anyone reopening or launching a salon in the UK, there are a few different types of insurance to consider.
Owning premises, working with members of the public, having a team of people and using chemicals in treatments - they all leave you open to risk. It’s therefore important to obtain the right insurance, so you and your business are protected from potential liability claims and any associated costs involved.
Salon Public Liability Insurance
Any business that welcomes other people into their premises should have this insurance cover in place. You have suppliers, customers and other members of the public coming into your salon; this insurance protects you if someone makes a claim for an injury they sustained during their visit or if their possessions are damaged.
A delivery driver bringing hair washing products slips on some water on your salon floor. He damages his back and is unable to work, so he puts a claim in to cover the loss of earnings. Your insurance will ensure that the loss does not get passed on to you and covers all your legal costs.
Products Liability Insurance
Even though colour and skin tests are carried out, there is still a risk that one of your clients could have a reaction to, or get hurt by, one of the products used in your salon. Similarly, one of their possessions could get damaged by products that you or your staff have used. Products liability covers you against any kind of claim. Also, it covers you in case your salon or belongings are damaged in some way.
Bleach is spilt on the coat of a customer and damages it. She puts in a claim to cover the cost of the coat, which is very expensive. Your insurance will cover these costs.
Professional Indemnity Insurance
If someone feels you or your staff have offered the wrong advice, given a bad treatment, or delivered flawed design work, your professional indemnity insurance covers any financial loss resulting from a claim. This is slightly different to accidental damage, so it does require a separate policy.
A customer is upset at the result of his eyebrow treatment. He claims he cannot go to work and is suffering psychological damage from the outcome. Your policy covers you for all the legal advice, costs and compensation arising from his claim.
Employer Liability Insurance
This is a legal requirement if you employ staff. It protects you and your business if one of your employees gets ill or is injured at work. If there are legal defence costs or compensation claims, you will be covered.
Your front door ricochets and hits an employee in the forehead, giving her a severe concussion and a scar. She puts in a claim. Your insurance covers you for all costs and compensation granted.
Regardless of the treatments you offer, salon insurance is a vital part of your business plan. You can never prepare for the unexpected, which is why it’s essential to have the right insurance to protect you when accidents do happen.
Getting it right is vital ‒ the key is to try and recoup losses, not risk more.
Call us to discuss your insurance needs on 0330 134 4564, and we can develop a package that suits your requirements. Or, if you know what you want, you can get an online quote now.
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