In today's litigious society, where no-win-no-fee solicitors make it easy for customers to file claims for even the smallest issues, having the right insurance is paramount. News stories about treatments gone awry are not uncommon, and how a salon manages such situations can significantly impact its reputation.
So, what key considerations should you keep in mind when selecting an insurance policy for your business?
Contents
When evaluating policies, prioritise those offering “new for old” contents cover. This is crucial to avoid situations where, for example, a stolen machine originally purchased for the value of £10,000 results in a meagre £100 payout for a second-hand replacement. Reinstatement policies give you back what you lost on a like-for-like basis, Indemnity policies take money off for wear and tear.
Tenants Improvements/Fixtures and fittings
If you are renting your premises you need to insure any improvements you have made to the property – you need to allow for the cost of replacing items such as sinks, mirrors, flooring and general décor as well as the contents.
Glass
Replacing shopfront glass can be a costly affair. Consider coverage that not only addresses the expense of glass replacement but also accounts for potential costs associated with redoing lettering if the window requires replacement.
Business Interruption
In the event of a loss that forces you to cease trading whilst the premises are being repaired, business interruption insurance becomes invaluable as your income would come to a halt. Furthermore, your customers could go elsewhere in the meantime and aren’t guaranteed to return when you re-open. Business interruption covers the costs of relocating to a temporary salon premises, ensuring continuity in your operations. It will also cover your loss in profits so you can keep trading as you were before the loss occurred, so that you don’t suffer whilst you are
rebuilding your client base.
Employers’ Liability
By law you need a minimum of £5 million Employer’s Liability cover if you employ staff (including work experience personnel). This covers illness and injuries to staff that occur on business premises which you are alleged to be responsible for.
Public Liability
Covers you if a member of the public sustains an injury or damage to their property on your premises. But beware; claims arising from treatments are not covered under this section.
Treatment Liability
Arguably the most crucial coverage for salon owners, treatment liability protects you from claims related to treatments you provide—such as burns, scalds, and allergic reactions. Many mainstream packaged policies either do not include this coverage or offer insufficient limits, making it imperative to secure adequate protection for your business and clients.
By carefully considering these factors, you can make an informed decision when choosing the insurance policy that best aligns with the unique needs of your business.
In 2016, HJ, in association with InEvexco Ltd, introduced Hairdressers Journal Direct—a bespoke insurance service specifically designed for the hairdressing industry. Regardless of whether you're a self-employed individual or a salon owner, HJD provides comprehensive policies to safeguard your business interests.
If you would like a quote or further information, please call the friendly, knowledgeable team on 0345 340 3550 or visit the website to obtain a quote or take out instant cover using the simple to use quote and buy system.
