The importance of insurance

It has never been more important for businesses to have the correct insurance. Premierline Direct’s Barrie Wells reports.For a start-up salon, insurance is probably the last factor the owner thinks about – way down the list of priorities below designing the salon, choosing the products and recruiting the team. And equally, for the established players in the industry, business insurance is still likely to be considered something of a hindrance, to be dealt with at renewal season and then forgotten unless a claim arises. But, like many other financial products, insurance is boring until the time comes when you actually need to check your policy to see if you’re covered for a particular risk – when it suddenly becomes rather interesting indeed. For instance, according to the Health & Safety Executive, 70% of all hairdressers in the UK suffer some kind of skin damage. If a junior assistant is suing you for an allergic reaction to one of the products they use during their day-to-day work, the quality of your insurance cover will play a significant role in determining the impact of the incident on your business. The Key Areas To Consider

• Fire
• Theft
• Workplace disagreement
• Glass and sign breakages
• Public, product and employer’s liability

In 1993, the New York Times alleged that the position commonly used for shampooing at beauty salons, with the neck tipped far backward over the edge of a sink, diminished the blood supply to the brain, sometimes precipitating strokes in older people. In 2004, Medical News Today had a similar complaint from a UK widower, convinced that his wife died of a stroke as a result of her head being bent back while being washed. Needless to say, all salon owners must have the correct insurance to protect their businesses against such complaints. And that comes down to risk management: preparation, preventing losses where it is possible to do so, making sure you have adequate cover and finding the proper balance between costs and benefits. Some Key Considerations Should Be:

• How well does your insurer understand your business?
• I have a claim to make – how responsive is my insurer?
• What services are provided?
• What do I get back?
• What kind of changes do I need to make in the future for that policy?

A good insurer will provide a variety of resources to help your business operate within the right framework of cover – providing industry-specific loss prevention information, industry lines, newsletters and website access/information. Take advantage of these resources to get the most value from your insurance cover.