You can be sued, whether you are at fault or not. Anything from a client falling over and hurting themselves inside your salon to accidently cutting a client
Owning a hairdressing salon comes with risks.
You can be sued, whether you are at fault or not. Anything from a client falling over and hurting themselves inside your salon to accidently cutting a client with scissors, if you cause bodily injury to the customer this may result in a costly liability lawsuit.
On top of that, expensive equipment such as hairdryers, curling irons, brushes and scissors are prone to theft and damage.
Therefore, hairdressers or hairstylists need suitable insurance to cover their risks.
However, shopping for suitable insurance can be complex. Not all policies are made equal, so it’s essential to understand what you’re getting. When you start looking for business insurance, there are many things to keep in mind.
What Insurance Does a Hairdressing Salon Require?
Like other retail businesses, a typical salon requires public liability insurance for hairdressers, commercial property insurance, business interruption insurance and workers compensation insurance.
Here is a brief explanation of each insurance type:
Public Liability Insurance:
Public liability insurance is one of the most important covers for Australian businesses regardless of their size and type. And hairdressing salons are not an exception.
Anything can go wrong at your salon on any given day. Your extremely hot iron damages the client’s locks and burns their skin. Your wet floor can lead to a “slip and trip” incident resulting in grave injuries.
Therefore, public liability insurance is essential for your profession as a hairdresser or hairstylist.
It may cover the costs arising from claims for damages and injuries caused by your business activities.
Commercial Property Insurance:
Commercial property insurance can financially cover your salon for the damage caused by plate glass breakage, fire, floods, or theft. Make sure that you are insured for the total value of your property, including fit out and contents.
Product Liability Insurance:
Many salons offer a range of hairstyling and hair care products to their clients, including shampoos, conditioner, hair creams and colour.
Your salon can be sued for an injury or side effect caused by defective products. Therefore, you also need to consider product liability insurance to protect your business from claims arising from products not performing to customer expectations.
Business Interruption Insurance:
Many events can bring your salon’s trading to a halt, including fire, water damage and power failure. It is challenging to continue your operations at normal trading levels until these issues are resolved. But you still must pay rent and wages in such scenarios.
Business interruption insurance can help keep your salon up and running. Also known as business continuity insurance, this insurance can replace lost income caused by fire and water damage. It may help cover wages and other ongoing expenses such as rent.
Insurance Requirements for Mobile and Home Hairdressers
Mobile and Home Hairdressers require public liability cover. They also should consider commercial motor insurance and personal accident insurance.
How Much Does Hair and Beauty Salon Insurance Cost?
The price of insurance for hairdressers and hairstylists is determined by factors such as coverage requirements, turnover and number of staff.
If your salon has 10 hairdressers, the cost will be more than a salon with 3 hairdressers.
The location of your business also plays an important role. For example, if your business is located near high-risk areas for glass breakage and burglary, you can expect more costly premiums than those located in “safer areas”.
(DISCLAIMER:
The cover may be available subject to meeting insurers underwriting criteria. Cover inclusions vary significantly from insurer to insurer. DO NOT rely upon the above. Check your policy schedule carefully for inclusions and exclusions and limitations. Talk to a business insurance broker for more information.)
Author Bio:
Romit Malhotra is the brand representative of Public Liability Insurance Australia, a leading Australian insurance broker. A big foodie, he loves to travel the world. Also, a diligent businessman, Romit likes to pen down his thoughts on related topics whenever he finds some free time.
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