Whether you are opening a hair salon, nail salon or beauty salon, it is important to keep your business safe from any potential compensation requests by buying insurance. A business is a business and it needs to be protected when it is still new and creating an image upon its market. Here are some examples of the types of insurance that a hair salon will need.
Like a Nail Salon will require Nail Salon Insurance in order to protect it from any claims from the public, your hair salon will require Public Liability to provide the same cover. Whilst it is not illegal to not have it, if one of your clients ends up reacting to hair dye, as one unlucky girl experienced when she had a claim when her hair came out green, or comes out in a rash, then your business will be liable for paying their compensation. Although a minor claim can cost only around $1000, this number will be dramatically increased once your legal fees are added to the cost. Instead of risking bankruptcy, it is better to be safe than sorry. An added bonus to this insurance is that it can also cover any wages that the claimant has lost as a result of the incident, any legal fees and associated costs or expenses.
Extra Unwanted Attention
According to Park Insurance, the rise in salons can be attributed to ‘consumer trends, the influence of fashion and the desire to look younger, coupled with economic growth, and the associated increase in real disposable income.’ However, whilst most of your clients will come to try out your hair treatment, your store may also gain some unwanted attention. Vandals and thieves certainly would not miss the opportunity to try and break into your business, especially if your glass windows could be easily broken. With a destroyed building, then you cannot conduct your business as the environment would not be safe to invite customers in. Therefore, it is essential that your salon must receive an insurance policy to cover the costs of any potential break ins or destruction on the premises.
it is essential that your salon must receive an insurance policy to cover the costs of any potential break-ins or destruction on the premises.
You may also want to look into insurance against potential flooding and fire accidents should they create a loss of profit, as you never know when a rogue straightener could catch fire. It is best to be as covered as possible.
You can never tell how a product is going to react with a client’s hair or scalp, especially if the client rejects a patch test. There have been horror stories on the internet of clients having rashes, swellings or, worse, their hair falling out. Thus, it is essential to have Product Liability cover so that you cannot be liable for any product used that resulted in any damage or loss. If you are worried about being sued, then it is also best to have your clients sign a waiver to take on responsibility, or at least a disclaimer to acknowledge that they understand any potential risks of putting the product upon their scalp.