Hair salons face risks and several types of insurance are available in a hair salon business insurance package that can protect you against these risks.
Hair salon insurance is similar to a standard business insurance package but it includes something called a treatment risk cover extension.
Property insurance covers your business property. It covers your building and its contents such as the fixtures and fittings, your business equipment and stock against accidental damage or loss due to theft.
This covers compensation claims made against you by your employees. It’s legally required if you employ anyone. As well as covering any compensation awarded it also covers any associated costs and expenses. Your insurer will help you deal with any legal issues involved in the claim.
This is similar to employer’s liability insurance although it covers claims made by third parties rather than your employees. It’s not legally required but you need it as some compensation claims can cost over £250,000 to settle.
The standard cover only covers you for claims involving an injury or damage, so you should make sure that you have a financial loss cover extension so you’re covered if a claim for a purely economic loss is made against you.
Rather than covering claims made by people who allege that something you have either done or failed to do has resulted in them being injured or their property being damaged, products liability insurance covers claims arising out of defects in any products that you have sold or supplied.
This type of insurance protects your income if you’re unable to work because you are ill or have been injured. A weekly benefit is paid while you are off work, and a lump sum is payable if you will be unable to return to work.
The covers your legal fees if you become involved in legal action. Your legal expenses insurer will also be able to help you deal with the legal action.
The public liability section in a standard business insurance package excludes compensation claims arising out of professional acts. This means claims arising out of hairdressing would not be covered.
The treatment risk cover extension addresses this issue so you’re not uninsured in the event of such a claim.