Explaining the need for insurance in a salon
All businesses face risks and, although you can minimise the risk your salon faces, you can’t completely eliminate risk. You can increase your salon’s security, but there’s still a chance that it will be broken into. You can try to be as careful as possible, but there’s still a chance that an accident will happen.
When something does go wrong, it can prove to be costly. Salon Insurance is vital when that happens because it protects your salon business from the unexpected losses that you might otherwise struggle to afford. But there are other reasons that you should have insurance for your salon.
Help with claims
Some claims are complicated to deal with. Claims involving legal matters are particularly difficult to settle.
Legal expenses insurance and liability insurance are two types of insurance that help you in this respect. Legal expenses insurance protects you against unexpected legal bills that arise when you become involved in legal action. Liability insurance protects you if a compensation claim is made against you.
But as well as protecting you against the financial outlay in the event of a claim, these types of insurance also give you access to a legally trained team and qualified solicitors that can handle the claim on your behalf, leaving you to get on with running your salon. The costs of these legal professionals are paid for by the insurance.
Obviously, it’s better if you don’t injure your customers and other members of the public, but as mentioned, accidents do happen. And if you find yourself in that situation, the person that you’ve accidentally injured or that has had their property damaged by your actions could make a compensation claim against you.
If that person has their claim dealt with swiftly and professionally by your liability insurer, they are likely to be considerably more forgiving. Rather than complaining about you to everyone they meet and all over social media, they could even recommend your salon as a result of the incident because, even though nobody likes it when things go wrong, it’s reassuring when problems are sorted without any fuss.
Keeping your clients
Most salons tend to have a number of regular clients. And regular clients are great because it costs serious money to find new clients, particularly if your salon is in a town or city where there are competing salons.
Because of this, if you’re unable to trade because the unexpected has happened, this is a bigger problem than just losing out on the income you’d lose while your salon was closed. If your regular customers have to use a different salon during your closure, there’s a good chance that they’ll become regular customers of that salon instead of yours, and getting them back could be difficult.
Having insurance in place to help you get your salon back up and running quickly means that there’s less chance that your regular clients will find that they have to go elsewhere.
Although most types of insurance aren’t required by law, if you employ anyone, you’re legally required to have employer’s liability insurance. This type of insurance covers you if an employee makes a compensation claim against you alleging that something you have done, or failed to do, has resulted in them being injured.
If you have any employees but don’t have employer’s liability insurance, you can be fined up to £2,500 per day. You are also required to display an employer’s liability certificate in your salon where your employees can see it and you can be penalised if you fail to do so.