salon insurance Compare quotes to find the best insurance policy for you
UK salon insurance protects business from various risks associated with running a salon, including property damage, liability claims and business interuption. It can cover things like damage to the building, its contents, stock, and equipment, as well as legal costs if a customer or employee makes a claim.
Here’s a more detailed look at what salon insurance typically covers:
Public Liability
This protects the salon from claims made by clients or third parties if they suffer an injury or damage while on the premises. For example, if a client slips and falls or has an allergic reaction to a product.
Employers Liability
This is a legal requirement for any business that employs staff, and it covers the costs if an employee is injured or falls ill due to their work.
Buildings Insurance
This covers the cost of repairing or rebuilding the premises if they are damaged by fire, storm, or other insured events.
Contents Insurance
This protects the salon’s belongings, such as furniture, equipment, stock, and personal items, from damage, loss, or theft.
Business Interuption Insurance
This provides compensation if the salon is forced to close due to an insured event, such as a fire or storm.
Legal Expenses Insurance
This covers the cost of legal fees and other expenses if the salon is sued or has to take legal action.
Profession Indemnity Insurance
This protects the salon if a client makes a claim due to a negligent service, such as a hair treatment that causes damage
Navigating salon insurance cover in the UK: a comprehensive guide
Operating a salon business in the UK, whether it’s a hair salon, beauty salon, or a combination, involves a unique set of risks that necessitates comprehensive insurance coverage. This guide will delve into the essential aspects of salon insurance in the UK, exploring the various types of coverage available, factors influencing costs, and the importance of compliance with relevant regulations.
Core salon insurance policies
1. Public liability insurance
This is a cornerstone of salon insurance, shielding your business against claims arising from accidental injury or property damage sustained by third parties on your salon premises or due to your business activities. For instance, if a client slips on a wet floor and injures themselves, public liability insurance would cover legal fees and potential compensation payments. It typically offers protection up to £5 million.
2. Employer’s liability insurance
If you employ staff, Employer’s Liability (EL) insurance is a legal requirement in the UK. This policy protects you against claims made by employees who become injured or ill as a direct result of their work for your salon. This could include claims for injuries sustained due to faulty equipment or illnesses caused by workplace conditions. The minimum required coverage is £5 million, though many insurers offer £10 million as standard. Failure to obtain this insurance can result in significant daily fines.
Also referred to as professional indemnity insurance, this cover is vital for salons offering hair, beauty, or other aesthetic treatments. It protects against claims of negligence, mistakes, or inadequate services that lead to loss or damage for clients. This might include claims arising from allergic reactions to products, unsatisfactory results from treatments, or incorrect advice provided by staff. Treatment liability insurance would cover legal defence costs and any potential compensation payouts. It’s crucial to note that this is usually offered on a claims-made basis, meaning the policy must be active when the claim is brought, not just when the incident occurred.
4. Commercial property insurance
This protects the physical assets of your salon, encompassing the building (if you own it or are responsible for insuring it), equipment, furniture, fixtures, fittings, and stock. This coverage typically extends to damage or loss caused by events like fire, theft, vandalism, and natural disasters. Contents insurance is specifically for the items within the salon, while building insurance covers the structure itself.
5. Business interruption insurance
Should your salon be forced to temporarily close due to an insured event, such as a fire or flood, business interruption insurance offers crucial financial support. It helps cover lost income and ongoing expenses, including employee salaries, while your premises are being repaired or rebuilt. This can be vital for salon continuity and preventing cashflow issues during unforeseen disruptions.
Other important covers
6. Product liability insurance
If your salon sells products, product liability insurance is essential. It protects your business if a client or any other person claims that a product sold or used by your salon caused them harm or injury.
7. Legal expenses insurance
This coverage assists with the cost of defending your business in court or pursuing legal action against others. Legal expenses can arise from various situations, such as disputes with clients, suppliers, or even employees.
8. Cyber liability insurance
In today’s digital age, salons store client data electronically, making cyber liability insurance an increasingly relevant consideration. It can offer protection against losses arising from data breaches, cyberattacks, and related legal and regulatory costs. While not legally mandated, complying with the General Data Protection Regulation (GDPR) is crucial for all businesses handling personal data.
9. Personal accident insurance
This insurance can provide financial protection for you or your covered employees in the event of an accident that results in injury or disablement.
Factors affecting salon insurance costs
The cost of salon insurance in the UK varies widely depending on several key factors:
Size and Revenue: Larger salons with higher annual turnovers typically incur higher premiums.
Location: Salons in areas with higher crime rates or increased risk of flooding may face higher insurance costs.
Services Offered: The types of treatments provided significantly impact the premium. For example, salons offering advanced aesthetic treatments like laser hair removal or microblading may have higher premiums due to the increased risk associated with these services.
Number of Employees: As employer’s liability is a legal requirement, employing more staff will naturally increase insurance costs.
Claims History: A history of previous claims can result in higher premiums.
Level of Coverage: Choosing higher limits for liability or property insurance, for instance, will generally lead to higher premiums.
Voluntary Excess: Agreeing to pay a higher voluntary excess (the amount you pay towards a claim before the insurer contributes) can reduce premiums.
Compliance and risk management
Adhering to health and safety regulations, including conducting thorough risk assessments and providing adequate training for staff, is crucial for both preventing incidents and demonstrating responsibility to insurers. This includes maintaining records of treatments, obtaining client consent, and ensuring products are used and stored correctly. Compliance with GDPR is equally vital, encompassing lawful and transparent data processing practices.
Conclusion
Salon insurance is an indispensable aspect of operating a successful and secure hair and beauty business in the UK. A tailored policy combining the necessary covers, such as public liability, employer’s liability, treatment risk, and property insurance, can safeguard your business against a range of potential risks and financial losses. By understanding the various insurance types, the factors influencing costs, and the importance of risk management and regulatory compliance, salon owners can make informed decisions to protect their businesses and ensure peace of mind.
To provide the best experiences, we use technologies like cookies to store and/or access device information. Consenting to these technologies will allow us to process data such as browsing behavior or unique IDs on this site. Not consenting or withdrawing consent, may adversely affect certain features and functions.
Functional
Always active
The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
Preferences
The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
Statistics
The technical storage or access that is used exclusively for statistical purposes.The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
Marketing
The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.
