Running a small business is rewarding, but it’s also full of risk. Accidents and mistakes can happen in any workplace, and beauty salons are no exception! It may be wise to prepare for worst-case scenarios so you’re not entirely caught off guard if they happen.
Insurance for beauty salons is one way you might do this. Different types of coverage can help protect your business from a variety of risks—from treatments gone wrong to a fire in the salon.
Let’s look at some of the reasons why beauty salons get insurance, the types of policies available, and how much you might expect to pay for coverage.
Why do beauty salons need insurance?
There are many reasons why hairdressers, barbers, salon owners and other beauty professionals get business insurance. Here are a few:
You face many risks
This is true for any small business, including beauty salons. Insurance could help you address hazards as varied as unhappy clients, accidental third-party property damage, extreme weather, broken windows, fire, theft, and unplanned business interruptions—just to name a few!
It may be required
If you are a member of the New Zealand Association of Registered Beauty Professionals (or want to be), you must have Professional Indemnity insurance. Other forms of coverage, such as Public Liability, may be a requirement to lease salon space.
Your clients might expect it
Most people won’t trust their hair, nails, or skin to just anyone. Business insurance is one way to show clients that you are a true pro. You value your business and professional reputation, and insurance shows that you’ve taken steps to help protect it.
Claims and lawsuits can be expensive
When things go wrong, it’s typically up to you as the business owner to fix them. This could be anything, from a broken sink or cracked mirror to an injury lawsuit brought by one of your clients. Repair bills, replacement costs, compensation, and defence expenses can quickly add up, costing you thousands of dollars (and maybe even your business).
It can help you stress less
Accidents and mistakes are a fact of life, no matter how careful you are. Having insurance coverage could help you work with more confidence and less stress. You’ll know that if the unexpected happens, you won’t be left out of pocket for expensive repairs, claims, and lawsuits.
What insurance do salons need?
There are many types of beauty salon insurance that you might consider as a hairdresser, barber salon owner, or beauty pro. Depending on how your salon operates, you may buy:
Professional Indemnity*
Clients come to you for beauty treatments, advice, and recommendations. You likely take great care when working with clients and sharing your knowledge, but things could still go wrong. A simple mistake or accident can cause an ugly mess for your finances and reputation.
Professional Indemnity is designed to respond to claims against your business for losses resulting from actual or alleged negligent acts or omissions in the delivery of your professional service or advice. These policies also assist with the legal costs associated with responding to or managing claims which are covered by the policy.
Public Liability*
Your beauty salon is likely a space of peace and relaxation. However, accidents and property damage could still happen despite your best efforts! Spilling hair dye on a client’s handbag or a delivery person injuring themselves after slipping and falling in a puddle of water are just some of the events that could leave you with an expensive claim.
Public Liability insurance is designed to provide protection in the event a customer, supplier or a member of the public sustains property damage or is injured (and not covered by the ACC) as a result of your negligent business activities.
Business Insurance*
There’s a lot that could go wrong when you run a business. A fire, flooding, or other wild weather could damage your equipment, stock, and building itself. Break-ins, theft, and unplanned business interruptions might make it impossible to see your clients. You may want to consider insurance coverage that can help you protect every layer of your small business.
Business Insurance is a coverage package designed to protect your business contents, stock, tools and commercial premises when an insured event occurs. Your Business Insurance policy can be customised to include different forms of cover, such as:
- Building Insurance – Covers physical loss or damage to your insured buildings caused by an insured event.
- Business Interruption – Helps you cover ongoing expenses (such as rent and wages).
- Contents – Can protect your stock, business equipment, records, fixtures, fittings, and furniture in the insured location.
- Money – Covers you if your money is stolen, lost or damaged while on your premises, in transit or temporarily stored in a private residence.
- Portable Equipment – Covers portable computer equipment and cell phones anywhere in the world for loss or damage.
- Theft – Covers theft of insured property where there is evidence of violence or forcible entry (but not fraud or shoplifting).
Do I really need all that coverage?
The above are some of the most common types of beauty salon insurance that salon owners consider. It might be shocking to learn about all these different policies, especially if you’re new to the beauty industry. But there’s no need to stress—choosing the right insurance for your salon may be simpler than you think.
Every salon is different, and the policies you might need or want may vary from the salon down the road, in the next suburb, or two cities away! It often helps to think about the risks you may face to help decide which policies you’ll buy.
Make a list of all the things that could go wrong in your business and how expensive it would be to set things right. This could help you decide which policies to buy and the amount of coverage you may need.
Thinking a bit outside the box could be helpful. For example, an electrical fire may cause not only damage to the appliance but also the premises and any incidental contents. In this instance, this may result in cancelled appointments and temporarily pausing business while repairs are completed.
How much does insurance for beauty salons cost?
Price is a big consideration for many business owners searching for beauty salon insurance. If you’re working with a tight budget, the thought of spending money for insurance coverage might make your hair stand on end!
However, insurance for beauty salons could be more affordable than you think. It often helps to understand the factors that go into calculating an insurance premium, such as:
Your services
The services your salon offers can impact how much you pay for beauty salon insurance. Services that are considered higher risk (for example, tanning beds) could equal higher premiums for your salon.
Your employees
The people you hire can impact the premiums for some types of insurance. Typically, Public Liability and Professional Indemnity premiums are higher for salons with a larger staff. This is because more employees increase the chances of a mistake or accident happening in your salon.
Your revenue
A booming business may also mean higher insurance premiums. Courts often take your income into consideration when awarding judgements. Therefore, the more you make, the more it may cost your insurer if a claim is made.
Your location
Where your salon is located can also impact how much you’ll pay for insurance. If you’re in a neighbourhood with a high crime rate, wild weather, or prone to flooding, you should expect to pay more for your beauty salon insurance.
Your coverage amounts
The amount of insurance coverage you seek will also partly determine how much you’ll pay for it. If you need or want a higher level of coverage, this will generally increase your premium.
Often, the best way to know how much you’ll pay for beauty salon insurance is to compare quotes from different insurance companies. This can also help you find cover that works for your small business at a price point that doesn’t break the bank!
A cut above the rest!
Running a busy beauty salon is hard work, but insurance could help you protect what you’ve built. Insurance for beauty salons can shield you against many mishaps and disasters—from a slip and fall accident to a late-night break-in. Without it, claims and lawsuits could cut away your hard-earned savings and potentially cost you your salon.
Thankfully, there’s insurance to help stop this from happening. And there’s BizCover to help you sort your beauty salon insurance needs.
BizCover makes it easy to compare insurance for beauty salons for your growing business. In just minutes, you can get multiple quotes from trusted NZ insurers and buy online instantly. No paperwork, no waiting, no dramas!
Why not compare beauty salon insurance today? Start your quote now and experience hassle-free business insurance!
This information is general only and does not take into account your objectives, financial situation or needs. It should not be relied upon as advice. As with any insurance, cover will be subject to the terms, conditions and exclusions contained in the policy wording.
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