Hairdressers insurance comes typically in public liability insurance, which provides cover for costs incurred due to a third-party claim. Public liability cover is not a legal requirement. Still, it’s widely considered essential in all public-facing industries, and few professionals have as much day-to-day contact with clients as hairdressers. Public Liability Insurance for salon-based and mobile hairdressers will cover you if you are found legally liable following a claim for compensation from a client or other third party.
Public liability insurance will typically cover:
- Malicious damage or interference
- Loss caused through your negligence concerning maintaining and repairing your equipment or premises or supplies used for services provided
- Injury to a person due directly or indirectly to your negligence arising out of professional services provided.
A hairdresser operating as a business, especially one employing staff, should consider taking out public liability insurance at a minimum. It is important to note that public liability insurance does not cover you for any damage or injury caused by your negligence directly or indirectly to your staff.
Public liability insurance will typically include the following optional extensions:
- Employers’ liability: this covers you against claims brought by members of staff who are injured at work through your negligence.
- Product liability: this covers you against claims brought by customers who have been injured by a product being used during service or treatment.
- Property damage: this covers damage to property caused directly through your negligence in the course of providing services, such as losing a client’s valuable diamond ring while cleaning it or damaging a customer’s car while loading equipment into it.
- Business interruption insurance: (sometimes called ‘loss of profits’ or ‘business income’ insurance) will cover the costs associated with your business being put out of action due to an event beyond your control.
- Professional Indemnity Insurance: This will help you protect yourself against the risk of being sued by a dissatisfied client. If you successfully defend claims made against you, your insurer will pay the amount awarded to the client’s attorneys up to your policy limit.
In addition to public liability insurance, businesses should consider adding other forms of business insurance to their cover. Business interruption insurance will cover the costs of your business if it is put out of action for a prolonged period by an event beyond your control, such as a natural disaster or fire.
As public liability is not a legal requirement, it is not always available. Businesses regarded as ‘high risk’ may find that they are refused cover or end up paying very high premiums for cover with exclusions that render the policy almost worthless. These exclusions might include everything from animals in the salon to employing staff who are also hairdressers, depending on the insurer.
Why is Hairdressers Insurance Important?
Protection against negligence claims is the most critical factor when considering whether to take out public liability insurance. Even if you have public liability insurance, you may still be liable for damages as a result of an injury caused by your negligence. In this case, the client may bring a claim against you and claim any costs from their medical treatment as well as their attorney’s fees. In many cases, the client will only bring a claim against you if they can show they sustained a loss or damage due to the injury or damage to them. This means that clients will often settle cases out of court to avoid the risk of them losing.
Professional indemnity insurance will cover you against claims for fees lost through damage to your reputation resulting from a client’s complaint against your professional services. Professional indemnity insurance will also cover you for damages and costs awarded against you. For example, if you are awarded damages to be paid by your customer for failing to provide the service they requested.
As with public liability insurance, professional indemnity insurance is not a legal requirement for hairdressers. Most claims relate to poor service or negligence in product knowledge, mix-ups with colour matching and incorrect haircuts. The cost of defending claims in these areas can be severe, particularly in the case of a successful claim against a business owner or senior staff member.
Employers’ Liability Insurance
To fully protect your business, you may consider taking out Employers’ Liability insurance. This will cover you for the loss or damage your business might incur if an employee suffers injury or illness as a result of work-related activities, where the injury or illness occurred due directly or indirectly to your negligence. Employers’ Liability Insurance will generally not cover liability arising from the use of chemicals, wiring, plumbing and electrical systems, risk assessment methods or equipment maintenance. This means that adequate protection for risks arising from these areas is essential. Employers’ liability is generally the most expensive cover to take out due to the extensive range of conditions, some of which are unique to the hairdressing profession.
The cost of insuring a salon depends on such factors as location, size and business type. The insurance cost will depend on the level of insurance coverage you purchase and the level and type of coverage you take out. The minimum guidance for hairdressers is to hold public liability insurance. Still, it is often advisable to purchase higher levels of cover, which reduce the risk of an accident that would threaten the business.
Find out more about the importance of Hairdressers Insurance here.
Other useful links about business insurance:
Business Contents Insurance
Business Building Insurance
Employers’ Liability Insurance
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