Salon Insurance Guide: Cut Costs, Not Cover

Salon Insurance Guide: Cut Costs, Not Cover

The hair and beauty business is booming in the UK. According to IBISWorld, the sector is now worth a whopping £4.1bn, is made up of over 41,000 business and employs over 152,000 people. Here at Coversure Grantham we have seen a sharp rise in the number of requests for salon insurance quotes over the past few years, particularly for barber shop insurance.
This remarkable growth has meant hundreds of new professionals – everyone from hairdressers and barbers to nail and skin care professionals – have been able to realise their dream of owning their own establishment.

Salon Competition Rises: Time To Cut Costs

One downside of this flood of new entrants to the market has been that competition for clients has become fierce and margins have been squeezed. Customers are looking around for discount vouchers online and with marketing-savvy owners using tools such as social media to increase word of mouth recommendations, cutting costs on essentials like salon insurance has never been more important.

To help you do just that – and to help ensure you have the protection you need – here is Coversure Grantham’s Salon Insurance Guide. In it we’ll share some insider’s tips on cutting the costs of cover and guide you to the elements you need to have in a policy to ensure the dream of running your own business doesn’t turn into a nightmare…

We hope that you will find this useful, but if you would like some personalised salon insurance help then please get in touch. You can call us on (01476) 565 590 or start your online salon insurance quote here.

What Cover Does Your Salon Need?

From an insurer’s perspective, salons, barbers and nail bars are fairly complex risks – much more so than other retail presences likes a shop or a café. Having members of the public come and go, undertaking numerous treatments on customers, having staff, stock and premises, means there’s a lot to consider. To ensure your business is properly protected, here’s our checklist of features you may want to include in your policy:

  • Treatment liability – accidents can happen and treatments can go wrong. With treatment liability cover in place you’ll be financially protected should a client sue you following the application of a treatment
  • Public liability – while not a legal requirement, you’d be well-advised to have a public liability insurance in place. With customers and suppliers coming and going all the time the possibility of someone slipping, tripping or sustaining on a stray flex, lock of hair or splash on water, an injury is an ever-present one. Should this happen and they take legal action against you, your public liability insurance will help protect your business financially
  • Employers’ liability – does your business have staff? Whether you have a Saturday girl, a chair renter or an entire team of hair and beauty technicians, your salon needs employers’ liability insurance – that’s the law
  • Money cover – while payment methods are changing and many people now use cards or even mobile wallets to pay for your services, cash is still important for many salons – especially for those whose customers are younger or older. Money cover could be important then. A typical money cover policy will cover you for a loss of up to £3000; be that through theft from the premises, loss while on the way to the bank or theft by a member of staff
  • Legal cover – whether it’s a sudden HMRC investigation or an employee breaking their restrictive covenant, unexpected legal wrangling can happen. These can be hugely distracting, stressful and costly, so having legal cover of up to £100,000 is a small price to pay for great peace of mind
  • Business interruption – your salon isn’t just your passion, it’s also your livelihood. So, what would happen if you had a flood or a fire and you were unable to open up? What then? Bills would still come in; employers would still need paying and you’d still have to spend time rearranging clients’ appointments. Well, with business interruption cover as part of your package you can guarantee an income until you’re ready to re-open

As with any insurance protection there are some add-on options that you may also want to consider. In the case of a barbers or salon owner, these include:

  • Product liability – did you know that if you use or recommend a product to a customer and that it causes them harm or costs them money that you can be held liable? Even if you don’t make the product, you can face legal action. Whether you’re a beautician, a hairdresser or a barber, products are an essential part of your working day so this could be a wise option
  • Contents cover – if you rent your premises then your landlord should have your buildings insurance sorted. Contents though are usually down to you and between chairs, basins, mirrors, scissors, straighteners and sound systems, replacing your contents could prove costly
  • Stock cover – whether its lost through theft, through fire or through flood, replacing your stock of products – the tools of your trade – would be an expensive exercise. Stock insurance can make this headache go away should the worst come to the worst
  • Tenants’ improvement cover – if you have made improvements to your rented premises – such as adding fixtures and fittings – then these will need to covered on a separate policy as your landlord’s cover may not include them
  • Cyber insurance – this may seem an odd one, but 50% of UK businesses were victim of a cyber-attack last year. Salons and barbers are not immune to this. If you have a computer, use social media for marketing and a website and email for your business then you are at risk. Cyber insurance won’t prevent an attack, but it will make picking up the pieces afterwards a whole lot easier…

How To Save On Salon Insurance

So that’s what you need; now how can you get cheaper salon insurance quotes? Well here’s Coversure Grantham’s top five tips for saving on salon cover:

1. Protect your business – insurers calculate premiums on the basis of risk of a claim. Lower your risk and you can lower your premiums. If you have retail premises then invest in a burglar alarm, CCTV and security lights. Fit grills or shutters to the front window and move any stock or tools out of sight and remove cash from the premises or put them in a safe. If you are mobile then make sure you remove valuables from your vehicle at night and keep it parked either off-road or in a well-lit space

2. Pay annually – some insurers will allow you to pay by monthly instalments and while this is convenient from a cash flow perspective, it may well end up putting up your salon insurance quotes

3. Use a broker – yes, as a broker we would say that but the fact is that all policies are not the same and if you talk to an experienced broker like Coversure Grantham you can save time and money. We’ll take the time to get to know your business before seeking out a policy that gives you the protection you need for an affordable premium

4. Raise your excess – raising your excess – the amount you pay in the event of a claim can reduce your premiums. If you have a good claims record then this can be a great option. Of course, if you do have to make a claim then this can prove to be a false economy

5. Keep claims to a minimum – nothing is more certain to push up your premiums like a claim. To avoid this, try and keep claims down by conducting regular checks on your equipment, check for leaky sinks, lose wires on plugs and ensure that your security measures are in good order

Like Some More Salon Insurance Help?

We hope that you will find this useful, but if you would like some personalised salon insurance help then please get in touch. You can call us on (01476) 565 590, email Coversure Grnatham here or start your online salon insurance quote here.

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