As a qualified hairdresser, you might be close to achieving your dream of owning your own salon, but you also need to consider the risks involved. As a business owner, insurance takes on a whole new meaning, because there are various scenarios that could leave your vulnerable which could lead to a claim being made against you. The right type of insurance will protect you from some of the larger risks to hairdressers, therefore it is important that you get the right cover. Risks within your salon include, but are not limited to, the following:
- Accidental injuries to clients in the salon
- Claims of negligence from clients
Accidental injuries can include spilling hot wax on your client or burning them with perming or hair straightening chemicals and slipping on a wet floor. Whilst you should ensure your salon has the correct risk management in place to avoid these incidents, unfortunately they can still happen. To ensure you are covered for risks of accidental injuries to clients, you need Public Liability Insurance.
In an incident where you provide your client incorrect advice, either before, during or after a treatment they could also submit a claim again you for negligence. Ensure you are covered for these types of claims with a Professional Indemnity Insurance policy.
Your business model also makes a makes a difference to the insurances you need. Your two business models are either owning your own salon or renting a chair in a salon, the latter being an increasingly popular start-up business model. Let’s take a look at both of these business models, so you will know which type of insurance cover you need for your new hairdressing business.
Insurance cover for hair salon owners
Fitting out your own salon can cost you thousands of dollars in equipment, but what happens if your property is damaged or you have a break in? Make sure you discuss with your insurance professional cover for your property and belongings, otherwise in the event of an incident, this could be costly and reduce money from your profits. If you are looking to employ workers or apprentices, ensure you have the adequate Worker’s Compensation insurance solution.
Business Interruption Insurance is yet another type of insurance that is important for owners of salons, because it covers you if you can’t operate your business. If your building is flooded, suffers fire or storm damage and you can’t operate your salon until repairs are completed, this insurance can cover all your on-going costs until you can operate again. Bills such as your lease, employee wages, council rates, electricity and water, as all these bills still need to be paid, even if you can’t operate.
Insurance cover for the ‘rent a chair’ business model
If you opt for the ‘rent a chair’ business model, you avoid all the insurances required by a salon owner, however you do still have a duty to cover yourself. You need to check whether or not you are covered under the salon’s Public Liability and Professional Indemnity Insurance, because if you aren’t covered, you will need to obtain these yourself.
It all comes down to whether you are considered an independent contractor or an employee. As an independent contractor, you won’t be covered under the salon’s Worker’s Compensation Insurance, so it is important to consider taking out Personal Accident Insurance to cover yourself against work-site injuries.
As you can appreciate, insurance cover for independent hairdressers can be complex, depending on the business model you select and your own needs. For help deciding which insurance policies are suitable for your business model, talk to an insurance specialist today.
General Advice Warning
The information provided is to be regarded as general advice. Whilst we may have collected risk information, your personal objectives, needs or financial situations were not taken into account when preparing this information. We recommend that you consider the suitability of this general advice, in respect of your objectives, financial situation and needs before acting on it. You should obtain and consider the relevant product disclosure statement before making any decision to purchase this financial product.