Financial Loss Insurance

The public liability section of your policy will provide cover for injury to a client or member of the public and also property damage caused by your negligence. But what would happen if a client were to suffer a financial loss that was not caused by injury or property damage? Not a problem – we have included a valuable extension in our policies to be sure you are fully protected.

Also known as the Non–Injury Treatment Extension, your Salon Gold freelance policy will automatically provide cover if a client or member of the public incurs a financial loss as a result of work or a treatment carried out by you in the course of running your business.

So for example, a client has a reaction to a treatment which did not actually cause an injury but turns their hair green or discolours their skin and as a consequence, they are unable to work. They may not accept your offer of a refund and may not want you to rectify the damage. Instead, they may make a claim against you for their lost earnings. If the client’s loss of earnings was a direct result of your professional negligence, this extension will provide cover for you.

Financial loss insurance covers you for any workplace incidents that cause a customer or other third party to lose money. This is also known as the non–injury treatment extension to public liability insurance. We include public liability in all of our policies as standard, and this cover is paid out if personal injury or property damage is involved. Financial loss insurance, however, is for circumstances that don’t cause physical damage. For example, if you offer a treatment that doesn’t harm a customer, but leaves them temporarily unable to work (like using a cream that discolours their skin), they could make a claim against you for any lost earnings. In this instance, you would be covered by your financial loss policy.

Our financial loss insurance has a standard limit of £10,000, with £1,000 excess, or 10% of your claim if this figure is greater. You can increase this limit to £50,000 for an additional premium if you wish. Whether you work from a salon or clinic, at home, or on a mobile basis, you’re covered in the UK, the Isle of Man and the Channel Islands, as well as having temporary (up to 14 days) cover for work abroad (excluding the USA and Canada). You’re additionally insured for accidental damage to employees’ and visitors’ personal belongings, and provided with £250 compensation per day if you are required to attend court.

Your personalised insurance package will be created in line with your specific business needs. For example, if you work in hair or beauty, you will be offered treatment risk cover to offset any claims associated with the professional services you provide. This could include everything from an allergic reaction to hair dye, to an accidental burn with hot wax. Whereas if you run a holistic, health or fitness company, malpractice insurance will be included to cover claims for bodily injury, and mental and psychological damage from physical procedures and advice. We know that no two businesses are the same, so give your livelihood the best possible protection with Salon Gold’s tailor-made insurance package.