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Small business insurance for hairdressers
Fri 18 August 2017 - 9:53 amExpert | Featured | Finance | Industry Finance | Insurance | Professional Services | Small Business | Sponsored
You’ve done the hard yards washing hair, booking appointments, and sweeping floors. Now it’s finally time to work for yourself. As a hairdresser, there’s plenty of opportunity to grow your own business, from renting a chair, to opening your own salon. Just as important as growing your business however, is protecting it. In this article, we’ll outline the top risks professional hairdressers face, and how to insure against them.
Protect Your Business
If you work in a hair salon, you’re expected to know the ins and outs of many different tasks, from hair styling and cutting, to perms and colouring, and even product sales. As a professional and qualified hairdresser you have a legal obligation to provide services with due care and skill, of a sufficient quality. However, despite your best efforts, there may be times that clients will be unhappy with the work performed, or become accidentally injured in the salon. These clients may bring legal claims that cost tens of thousands of dollars.
Fortunately, there are two kinds of insurance that can help protect your finances against such claims:
- Public Liability Insurance covers legal claims from clients who are injured in a salon, for example as the result of hot wax or straightening chemicals.
- Professional Indemnity covers legal claims for negligence, including those from advice given before, during, or after treatment.
Do you own a Salon?
From chairs and wash basins, to cutting stations and hair accelerators, salon fit-out costs thousands of dollars. As a result, you’ll want to make sure your equipment is covered. General Property and Material Damage Insurance will protect your business against certain kinds of damage to your salon’s possessions and premises. You may also need Business Interruption Insurance, to protect against loss of revenue if a storm, fire, or other covered natural disaster, leaves you unable to open up shop.
If your salon employs other hairdressers or apprentices, you are required by law to hold Workers Compensation Insurance. This kind of insurance covers your workers against injuries they may sustain whilst at work. The exact cover you’ll need depends on your State, so make sure you get the right policy for your location.
Are you ‘renting a chair’?
One of the best parts of a hairdressing career is the ability to work for yourself, on your terms. Many hairdressers choose to “rent a chair”, and run their own business from an existing venue. But working for yourself in someone else’s salon can pose its own unique risks. As an independent contractor, or renter, you may not be covered by the salon owner’s Public or Professional Liability Insurance.
If you are not an employee of the salon, you won’t be covered by the salon owner’s Workers Compensation Insurance. Make sure you understand whether you’re protected, and what insurance you still need. Consider taking out Personal Accident Insurance to protect against loss of income if you become unable to work.
Hairdressers can have varied and complex insurance needs, and it can be tough to know whether or not you’re fully protected. We recommend you speak to a small business insurance expert, to make sure you find the cover that’s perfect for you.