Insurance for Beauty Salons

In this article, we’ll talk you through some of the more common kinds of business insurance policies that you may want to consider.

What are the risks of running a beauty salon business?

Like all businesses, owning a beauty salon comes with a number of risks. So, it’s important to be aware of what these risks entail and to prepare yourself if the unexpected were to happen. Here’s a list of five potential claims made in the beauty industry:

1. Fire and Storm Damage:

Some accidents you can prevent, but unfortunately some you can’t, such as fire and storm damage. 2. Back in business: Similar to Fire and Storm Damage, forced closure could be another common claim scenario, where salon owners find themselves in a position where they have to shut for an extended period of time due to an unexpected event. Note, this would usually exclude claims for closures due to the pandemic as this is a common exclusion on most policies*.

3. Glass:

With a lot of salons located in busy streets, there could be a number of broken/ smashed windows claims. Thankfully, this is something you can often get cover for within your policy.

4. Theft:

Theft could be another common claim made by salon owners. So, apart from making sure you are locking your doors properly, check that your policy covers you for stolen contents and/or stock.

5. Public Liability:

As with any type of business, there’s always a risk of injuring or damaging someone or their property while they are in your salon.

Public Liability Insurance

First up, we have Public liability insurance*. Now this type of insurance is actually compulsory for a lot of Australian businesses. Public Liability Insurance can help cover legal fees and compensation costs if a customer, member of the public, or a supplier sues you for injury or damage to their property as a result of your alleged negligent business activity. For example, let’s say a client or visitor slipped and hurt themselves in your salon and they made a claim against your business. You’d be counting your lucky stars for Public Liability Insurance, as it could help cover legal and compensation costs if they were to sue you for negligence.

Professional Indemnity Insurance

Next up, we’ve got Professional Indemnity Insurance*. This type of insurance may be important for businesses that offer professional advice or specialist services. Professional Indemnity Insurance could help to respond to claims that result in losses due to actual or alleged negligent acts or omissions. On top of that, it could help cover legal costs.

Tax Audit Insurance

Tax Audit insurance* doesn’t sound very fun, does it? But this type of insurance could help cover your salon for specified costs in the event that it’s selected for auditing by the Australian Tax Office. Typically, this will be the costs of accountants assisting you to respond to the audit.

Personal Accident and Illness Insurance

Even when you run the most professional and organised salon in town, sometimes accidents happen. That’s why some salon owners choose to take up Personal Accident and Illness Insurance*. Should an accident happen, this policy could help provide an income if you’re unable to work due to illness or injury.

Business Interruption Insurance

Business Interruption Insurance* can help cover for you for the loss of income and increased costs of operating your salon caused by a specified insured event, such as malicious property damage, or fire. It could also help pay ongoing expenses, such as your staff’s wages or rent.

Building & Contents Insurance

Last up, we have Building Insurance*. With a suitable policy, you could be covered for loss and damage to your salon, as a result of an insured event like storm, wind or fire. Contents Insurance* could also help cover the loss or damage of stuff inside your insured salon. Like laser machines, stock, and other equipment.

How do I find an insurance policy for my salon?

You’re probably thinking that’s quite a hefty list of policies. Good news is, you don’t necessarily need to have all of these insurance policies. You just need to find suitable cover for your salon. Not sure where to start? Start with us! iSelect and BizCover take all the hard work out of finding a suitable insurance policy. Start comparing multiple business insurance quotes from a range of leading insurers online, or call our team on 13 19 20.

Last updated: 20/08/2021

*As with any insurance, cover will be subject to the terms, conditions and exclusions contained in the policy wording.

Sources:
1. https://business.gov.au/Risk-management/Insurance/Business-insurance