Will public liability insurance cover claims due to incidents caused by the products I advised?

If your client files for a claim due to a beauty product, you can use product liability insurance. Public liability may be used for client claims due to accidents that happened in your place of business.

What type of insurance does a hair salon need?

Beauty salon business owners may choose from a wide range of business insurance policies depending on their services. Also, take into account the risks involved in your type of business, especially if you provide mobile service.

What insurance fits freelance beauticians?

Freelancers may have general property cover insurance to protect themselves from equipment damages. Professional indemnity policy also works well by protecting the therapist from a claim due to wrong advice and services.

Top Beauty Industry Insurance Claims: What you should know

Keep your business protected and be ready for anything

There are a lot of risks involved when operating a beauty business. Accidents, for one, is top on the list. There are other exposures too which can potentially lead to financial loss and possible business interruption.

Learn about the most common beauty industry insurance claims reported by Sparrow Insurance, and some quick tips on how to minimise risks when operating your business.

5 Common Types of Claims in the Beauty Business

While it might be easy to believe that nothing could go wrong once you started running your salon, there are times when unexpected incidents occur at the most inconvenient times. Whether yours is a small studio or a large clinic, you may possibly encounter these claims.

Accidents

Even if as an experienced beauty professional you know your job by heart, untoward incidents happen, that could cost a person’s health, or worse, their life. Chemical spills, slips-and-falls, and exposure to hot items are all common accidents in beauty salons and clinics, which can potentially lead to clients filing claims.

Public Liability insurance is one type of business insurance policy that may cover the costs of claims caused by accidents to third-party members.

Theft

Equipment or product theft is one common claim in the beauty industry. When you are robbed of your hair and beauty machines, it would be difficult to provide your services to your customers, not to mention costly to replace everything.

Clients may also lose their property while at your salon, and you could be held liable. As such, adding a policy to protect your beauty business against theft claims is important and helpful.

Advice gone wrong

Even though you and your staff are experienced professionals, and the advice provided is general advice. What works well with many of your clients, could suddenly go wrong with another client.

Claims due to professional advice that seemed inappropriate or dissatisfactory for clients are very common in the beauty business industry. What most beauty businesses do is secure professional indemnity insurance for if in the unfortunate event this were to occur.

Fire & Storm Damage

Natural and accidental disasters are things that people have no control over. You will never know what could happen to your business if a calamity strikes. Property damage due to floods, fires, and storms are devastating, and could have a significant impact on the running of your business.

Fire and storm damage is one of the most common claims made by beauty businesses. Insurance policies may vary depending on several factors to do with your business, make sure you thoroughly discuss the details with your insurance broker.

Business Interruption

This happens when a beauty business needs to relocate, renovate, or stop due to adversities like a natural disaster or a pandemic, among other things. An insurance policy may only offer coverage for what is likely happening at the present, it’s important to plan for what uncontrollable circumstances may come that could cause interruption to your business and finances.

How To Minimise the Risks and Avoid Claims

While it is impossible to avoid risks in your salon completely, there are some ways to decrease your chances of a claim being made against you and you small business.

Train your employees

Ensure you and your staff are appropriately trained and qualified for the treatments and services that you are performing. This includes the products and equipment you are using, which should only be used in the way they are intended following manufacturers instruction.

Secure your premises

Install adequate electronic security devices such as CCTV, intruder alarms and security lights. Inform your insurance provider of what security measures you have taken.

Put a risk management plan in place

Prepare for severe weather conditions or a possible natural disaster. Include reviewing emergency evacuation routes, testing fire safety detectors and maintaining the premises to protect it from flying debris.

Have a suitable insurance policy

You can further safeguard against risks by making sure you have the right insurance policies in place to protect your business. Whether that is professional indemnity, public liability, building and contents or business interruption, plus others.

Arrange the Right Type of Salon Insurance

There is a wide array of insurance products. It can be challenging to find the right policy for you and your business. Seeking the advice of a professional insurance broker will ensure that you have a policy in place that is designed to protect you, and will make a significant difference to the outcome if a claim were made against you.

Here are some types of insurance that you should consider:

Contact Sparrow Insurance directly for further information and recommendations on salon insurance. Call today on (07) 5502 8326 or get an instant quote online here!

General Advice Warning

This advice has been prepared without taking into account the client's objectives, financial situation or needs.

Because of that, before acting on the above advice, the client should consider its appropriateness (having regard to their objectives, needs and financial situation).

If the advice is related to the acquisition of an insurance contract, the client should obtain a Product Disclosure Statement relating to the product before deciding whether to acquire it.

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