Many ask why would you need a good hair salon insurance policy or a barber shop insurance insurance policy? The day-to-day operations of a hair salon require hard work, dedication and some serious taste for style. Creating gorgeous hair masterpieces is certainly a big responsibility. Hair salon owners also have a responsibility to their employees, customer satisfaction and duty of care, stock control and risk management and reductions – – that’s a lot to think about, right?!
So, if you own a hair salon or barber shop in Perth, or you’re thinking about starting one, here’s a guide to what’s involved in hair salon insurance. Same applies for Barber Shop Insurance. Read more to find the best insurance cover for your unique business needs.
Why Do Hair Salon and Barber Salon Owners Need Insurance?
Whether it’s customer allergic reactions to hair products, tripping over equipment, to damage of property, there are a range of risks associated with owning and operating a hair salon.
There are three main areas of cover that Frans Du Plessis and the team at Grace Insurance in Perth recommend for small businesses, like hair salons:
- Third-party bodily injury,
- Property damage,
- Theft on premises,
- Plus, many more reasons you probably haven’t thought were relevant.
While not a specific type of insurance, hair salon insurance provides a combination of business policies styled to suit the unique needs of hair salons. With great expertise and ownership comes great hair masterpieces. With hair salon insurance, comes peace of mind, so you can focus on running your business and wowing your customers.
What Legal Claims Could Be Made Against a Hairdresser?
- A customer could slip and receive serious injury on wet floor inside your hair salon. As a store owner, if you haven’t put up a wet floor sign how would this affect you? You need to make an effort to dry the area as soon as possible or advised people of the potential hazard, then you may be liable for negligence, should they suffer an injury.
- Covering lost stock and/or money from a break-in. Did you know ‘glass cover’ is an option under your hair salon insurance packing? This ensures the repairs or replacement of front windows in the case of accident or malicious damage.
- A workers’ compensation claim could be made if an employee is hurt at your hair salon, as a result of a workplace accident or illness.
Depending on the size of your hair salon, these claims (and more) could cost you thousands. Sometimes even millions of your hard-earned dollars. Could you afford to pay for the repairs or associated legal expenses? Below are types of insurance that can ease the costs related to unfortunate, unlikely, but still very real circumstances.
Salon insurance and Barber Shop Insurance
What Type of Insurance Do Hair Salon Owners Need?
- Professional indemnity – The goal of your business is for your clients to look and feel great with the new look or style you provide. Hairdressers, like all people, are not infallible and have the ability to make mistakes. Not just emotionally traumatic, a compensation claim against you or your business could potentially ruin your business and reputation. Professional indemnity insurance protects your business from financial costs related to legal fees, settlements, and court costs associated with any legal action pertaining to negligence or allegations of poor quality service provisions.
- Public liability insurance –Whether you work from your own salon, or mobile service, you’re always in close contact with your clients. This makes Public liability insurance essential for hairdressers. In the unlikely event of a customer, supplier or member of the public sustaining injury or property damage as the result of negligent business (in)actions. Trips, falls, chemical hazards, electrical malfunctions causing injury and/or razor, scissor accidents are all very real hazards an employee or member of the public may experience in a salon.
- General Property Insurance – General Property Insurance is crucial for hairdressers and barbers as it provides coverage against loss or damage to tools and equipment that are vital for their daily operations. Whether it’s clippers, scissors, or styling tools, this insurance helps ensure that the business can continue running smoothly even in the face of unexpected incidents. It typically covers risks such as theft, fire, and other types of accidental damage.
- Commercial Property Insurance – – For salons and barber shops, Commercial Property Insurance offers a more comprehensive protection. It not only covers the contents and equipment like General Property Insurance but also extends to the physical building itself. This type of insurance is vital whether you own or lease your space, as it protects against major financial losses caused by disasters such as fires, storms, or vandalism. It ensures that the structural integrity of your workspace is safeguarded, helping you to quickly recover and rebuild if disaster strikes.
- Workers Compensation – Medical bills and wage replacements for hair salon employees who experience a work-related injury or illness such as breathing in hazardous chemicals or repetitive stress injuries such as carpal tunnel from cutting hair.
Do I Need Insurance as a Freelance Hairdresser?
In Australia, whether you operate a stationary salon or offer mobile hairdressing and beauty services, Public Liability insurance is an essential component of your business protection strategy. This type of insurance is crucial because it covers you against legal and medical costs that could arise if a client or member of the public suffers an injury or property damage as a result of your business activities.
