Types of Coverage for Hair and Beauty Salons

Hair and Beauty Salons

There are four types of insurance that every salon should have to protect their business properly. These include:

Public Liability
Public liability insurance provides the necessary protection against your legal liability for injury to third parties (your customers) or in case of any damage to their property which they may experience during a visit to your salon.

Products Liability
Products liability insurance offers protection against your legal liability, compensation costs, and expenses in the unfortunate event that a client experiences injury or damage from using products that you have sold or supplied.

Employers’ Liability
Employers’ liability is a legal requirement for all businesses if you employ full/part-time employees, contractors, casual workers or temporary staff. It secures protection for your business by safeguarding your legal liabilities to pay compensation for any injury or illness that your employees or trainees may suffer during the course of the business.

Treatment Liability
Treatment risk insurance tends to be an extension of the Public Liability section of your insurance coverage and can be tailored to provide cover for any injury to your customers or any damage to their property that arises out of the treatments you undertake. Depending on the services your businesses offer, you can get cover for any of the following treatments from most good small business insurers (particularly those who specialise in the hair and beauty industry).

Some of the most popular treatments that need coverage tend to include:

  • Hair-cutting, colouring and styling
  • Waxing and other forms of hair removal
  • Nail art and treatments
  • Skin care and facial treatments
  • Tanning
  • Deep tissue/aromatherapy massages

Depending on whether you own or rent your premises it’s also important to look into building, contents and stock insurance too.

What to Factor in for Insurance Coverage

Factor in for Insurance Coverage

There are a number of factors that can affect how much your insurance policy costs as a salon business owner. Here’s a checklist to ensure you’ve taken each one into account, they include:

  • Your business’ location
  • The square footage of your salon
  • Building type and ownership/rental agreement
  • What fire alarms and security systems you have in place
  • What type of treatments you offer
  • The number of employees on your team
  • The insurance provider you consider
  • Your insurance claims history
  • Your personal and business credit

The Cost of Insurance

Depending on the factors I’ve just mentioned, the other influence on cost will be the type of coverage you select. Choosing more coverage will typically increases the cost to your business. 

A word of warning though, it’s safer to err on the side of caution rather than cost-cutting when it comes to protecting the business you’ve worked so hard to build up. Cover yourself and your employees not just against accidents that may happen today but to safeguard your future earnings too. Consider it an investment in yourself and your business and get insured today!

  1. Salon Transform
  2. Beauty Salon Business Plan
  3. Beauty salon insurance

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