Working within a beauty environment means therapists, hairdressers and beauty technicians alike get up close and personal with the general public. While there’s no doubt, the results of any treatment are designed to enhance the way clients look and, most importantly, feel, the reality is that there is always the potential for a treatment to go wrong. Likewise, events may happen that financially threaten the business, such as theft of stock or damage to any equipment. That’s why insurance should be a top priority for any beauty business, with some insurance types also are a legal requirement.
According to the insurance comparison website NimbleFins’ salon insurance guide, all those who work within the beauty industry need to consider taking out four primary types of insurance. This includes public liability insurance, product liability insurance, treatment liability insurance, and employers’ liability insurance. Some additional insurance types also exist that may be relevant depending on how a business operates.
For beauty salons that want to ensure they have comprehensive cover to protect their business in case of legal action or financial loss, here is what to consider, along with the available avenues to arrange beauty salon insurance cover.
Beauty Salon Insurance Considerations
- Business interruption
- Client injury or irritation
- Damage to client’s property
- Defective products
- Equipment and stock value
- Incorrect technique or product preparation
- Number of employees
- Relevant qualifications of employees
- Safety of the general public within the salon
- Therapist or hairdresser’s ability to work (loss of income)
- The level of financial cover required to protect the business
- Types of treatments given
Beauty Salon Insurance Stats
- Beauty salon insurance costs £472 on average per year (£9.07 per week) for £2,000,000 worth of cover
- Failure to take out employers’ liability insurance can result in a fine of up to £2,500 for each day the beauty salon has gone uninsured
- The average individual insurance claim for a beauty salon is £2,894
- Approximately 6% of people have had an adverse reaction to PPD, which is a chemical used within most hair dyes
- A leading personal injury solicitor has advised beauty salon related claims can range between £2,220 and £98,380, depending on the severity of the injury caused
Beauty Insurance Comparison Websites
Insurance comparison websites have undoubtedly made the process of finding insurance quotes for any type of insurance far easier than in previous times since the relevant details only need to be entered once to be presented with a wide range of quotes.
In addition, it’s also possible to toggle the options to include the exact aspects that the salon requires cover for such as personal accident insurance for hands, stock cover and even failure of a telephone line, along with many other specific scenarios that can threaten the operation of any beauty business.
The key with insurance comparison websites is to ensure they cater to the beauty industry since generalised business insurance may not provide the level of cover that a beauty business realistically needs. If in doubt, researching the types of claims the general public can make against a beauty business is a great place to start, at least where treatment insurance is concerned.
Insurance brokers typically work independently of any insurer and offer special deals and incentives that can’t always be found elsewhere. In addition, unlike comparison websites, insurance brokers work directly with their clients to understand their business needs and match them with the most appropriate insurance options.
However, not all insurance brokers are created equal. As well as ensuring the professional knows the beauty industry with regards to the cover a business will need, some additional elements need to be researched before selecting an insurance broker. For example, which insurers the broker has relationships with, if they are well established, and how they approach analysing the business’s claims history. A broker should also declare how they are being paid for their services and whether they have any affiliations with particular insurers.
Specialist Beauty Insurance Companies
By far, the biggest advantage of working with an insurance company that specialises in the beauty industry is that such companies have insider knowledge on the different types of treatments provided, rather than offering a blanket level of cover. Given beauty treatments are becoming ever more invasive in line with changing trends, having an insurance policy that can keep up with all the potential pitfalls of offering certain treatments is essential.
Though, one consideration with specialist beauty insurance companies is that businesses won’t have full access to all the available insurers in the UK. This may mean the deal they receive isn’t as competitive, especially if they were to opt for an insurer they already hold other policy types with (i.e. car or home insurance), which may work out much cheaper. So, as with any insurer type, diligent research is required.
To Sum Up
When it comes to how to get insurance as a beauty salon, the main considerations are whether to opt for a beauty-specific insurance company, a broker or a general insurance comparison website. The final decision may mean businesses receive more specialist advice in exchange for less competitive quotes. That is why as well as taking the time to read through the small print; businesses should consider which aspects of their insurance take precedence to ensure they are protected for every eventuality.