Most people understand how insurance for buildings and contents works because they’re already insuring their home and its contents against losses due to accidental damage and theft. They also understand how motor insurance works because they’re already insuring their private car. They may have heard of legal expenses insurance because as well as being a type of business insurance that’s available, it’s also sometimes an extension to private household or motor insurance.
But business insurance is a mystery to many people, and hairdresser’s insurance is even more of a mystery because it contains some specific extensions to tailor it to the specific risks that hairdressers face.
So, what does hairdressers insurance cover, and why do you need it?
Public liability insurance
Public liability insurance protects you if a client or member of the public claims compensation from you because you have either done something, or failed to do something, and that has resulted in them being injured or has damaged their property.
Hairdressing is very much a people business, so the risk of compensation claims is very real. And compensation claims can be expensive. If you cause a serious injury, it could easily result in a compensation award of more than £250,000 and the legal fees would take to total cost to a much higher figure. Public liability insurance is essential for hairdressers.
Products liability insurance
Like public liability insurance, products liability insurance protects you against compensation claims, but instead of protecting you in the event of a compensation claim arising from something you have done or failed to do, it protects you in the event of a compensation claim arising from something you have sold or supplied.
Public liability insurance policies often include products liability insurance but it’s important to check just in case.
Treatment risk extension
This is a vital cover extension for hairdressers because hairdressing is a profession and standard public and products liability insurance policies exclude claims arising from professional activities. This could mean that you would be uninsured in the event of a compensation claim being made against you following a treatment or advice that you had given, so it’s important to have treatment risk to make sure you’re covered.
Financial loss extension
This is another vital extension for hairdressers because standard public and products liability insurance policies only cover compensation claims involving injuries or property damage. Usually compensation claims for purely economic losses are not covered.
An example would be if you had cut a model’s hair badly. The haircut wouldn’t be classed as an injury as the hair would grow back, but it could mean lost income if the model was unable to work in the meantime. Without a financial loss extension, a compensation claim for that lost income would be uninsured.
Other types of hairdresser’s insurance
Covering your freelance or mobile business assets against losses due to accidental damage and theft and motor insurance have already been mentioned. However, there are other types of business insurance that aren’t specific to hairdressers but are nevertheless required because hairdressers are businesses.
Employer’s liability insurance is one. This protects you if you employ staff and one of your employees make a compensation claim against you. If you employ anyone, employer’s liability insurance is a legal requirement. You are also required to display a Certificate of Employer’s Liability Insurance. There are severe penalties for anyone who fails to comply.
Personal accident insurance is the other main one. If you are self-employed, you won’t get sick pay if you are unable to work. This means that you won’t have any income and won’t be able to pay your bills. If you are unable to work due to an injury or an illness, personal accident and sickness insurance pays you a weekly benefit until you are back on your feet and able to work again. It also pays out a lump sum if your injury or illness means you won’t be able to return to hairdressing.