Understanding Your Salon Insurance: 3 Possible Pitfalls

Dean Laming ACIIBy Dean Laming on July 30th, 2016

To find the best insurance cover for your salon, you need to first understand the kind of cover that you need. To be fully protected, it is important to have a policy which provides a range of cover. As a salon open to the public, you will need public liability, buildings, cash, stock, contents and equipment insurance.

It’s vital that you have liability insurance for your salons because if a client were to trip over a lead, or slip on a wet floor, they would be able to claim against you and your salon. Moreover, if a treatment goes wrong as can sometimes happen, the salon owner needs to be protected. It’s not unusual for some people to have an adverse reaction to chemicals which are used in salons and for treatments to go wrong. Therefore, it’s foolhardy for salon owners not to ensure that they are covered for this eventuality.

The risk of under insurance

It can be a costly mistake to try to save money on insurance and think that theft, fire or flood would never happen to you. However, such catastrophic events are more common than we all like to believe. When considering insurance, it’s important to plan for all eventualities and think ahead to how much it would cost to replace your contents or business building. Your salon is your livelihood and you need to invest in adequate cover to ensure that you will not be adversely affected by such catastrophes.

If you are not adequately insured when you make an insurance claim, you will not be covered for the full value of your contents and valuable equipment. This could mean that you would be left to finance the cost of your contents yourself. Many salon owners under estimate the value of their contents in terms of stock and equipment and tend to underinsure it as a result. This could leave you unable to trade as effectively as you could prior to the insurance claim and could ultimately affect the viability of your business, as well as your hard-earned reputation.

Putting together a comprehensive list of your contents, including equipment, stock, furniture, fixtures and fittings, and costing these accurately, is vital to ensure you are adequately covered. Replacement costs of equipment can often be much higher than expected, so researching this information is vital for accurate cover. Having such information on record stored online can cut down on stress should you be forced to make a claim due to fire, flood or water damage.

Incorrect salon insurance

Some salon owners pay little attention to their insurance and whilst they may be covered for carrying out treatments, they are not covered for their building and contents which may include valuable equipment. Shockingly salon owners are under the impression that they are covered, and when they come to claim if they have a fire or theft or water ingress, they discover they aren’t covered and are left out of pocket to purchase stock and equipment themselves. Whilst insurance is not the most complicated area of business, it is important to read the small print and ensure you fully understand your policy should you be in the invidious position of having to make a claim. Taking out adequate cover not only gives you peace of mind, but also ensures that your business can be back up and running again very quickly, as if nothing happened.

Salon Gold provides both hair salon insurance and beauty salon insurance. See further information on our salon insurance policies.

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