Navigating insurance options is one of the more boring aspects of running a business, but it is essential nonetheless. Having the correct insurance in place can help to protect your business and prevent you from being personally liable for damage or harm to employees or customers. It can also protect you against financial loss in the event you are robbed or are unable to trade.
In this Salon Iris guide, we’ll break down some of the essential types of business insurance you should consider. And look at the need for insurance in a salon.
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If you have employees in your place of work, you need insurance to protect yourself from the cost of compensation claims from your employees. Without this, your business would be liable for the amount. This could mark the end of your business if you are unable to pay.
Imagine a worker slipped when in your salon and broke their wrist. You later discover the cause of the fall was a puddle by the washbasin that should have been mopped up but wasn’t. The worker would be unable to work and could be eligible for compensation if they make a claim. Without employer’s liability insurance, you would be responsible for the payout, which could end your salon.
Before you sign a commercial lease, you should always check who is responsible for building and contents insurance. Sometimes, the landlord takes care of the building insurance and you have to take out contents insurance.
Contents insurance will protect your business from loss as the result of theft, flood or fire. This will mean you will get a lump sum payout to help replace items that have been lost. Being careful won’t provide the same level of protection. A lot of businesses try to avoid this type of coverage as they assume they will never need it. And it’s true, you might never make a claim. But if you do ever need to make a claim, you’ll be grateful you had the foresight to get this type of insurance.
This type of insurance protects you from compensation claims made by the public. This could be your customers or people who are outside your business. Without this type of insurance, you could face very costly compensation claims.
Imagine a member of the public is walking outside your business and your sandwich board sign tips over and pushes them down. If they are seriously injured, they could make a claim against your company.
And it doesn’t have to be a member of the public. Imagine a chair breaks unexpectedly and a customer falls on the floor. If they are injured, they could make a claim against you. It might seem very unlikely, and you might think that your customers would never do something like this, but it is always better to be safe.
This is a contentious issue at the moment, as many salon owners did have business interruption insurance, but many insurance companies have tried to get out of paying. Business interruption insurance typically includes events like power cuts or maintenance outside your premises. Many insurers decided that
If the road has to be dug up to fix a broken water main, and you are unable to get into your salon to continue trading, you would be covered for a predetermined daily amount. The higher your premium, the more coverage you will get.
You can’t plan for the unexpected, but you can insure your business against it. Remember that being unable to trade is not only a loss in terms of the missed bookings, but it can also be a blow to your reputation. It might not be your fault, but the person who has to look elsewhere for a last-minute appointment before a special night won’t see the distinction.
We’ve covered all aspects of the business except you! Personal accident insurance will provide a cash payout in the event you have an accident and are injured at work. It might not seem like dangerous work, but salons are filled with chemicals, electricals and trip hazards. You should make sure you are protected so that you won’t be out of pocket if you are unable to work.