How To Check If A Beauty Salon Has Insurance
Whether or not the provider is insured is probably not high up on anyone’s agenda when looking to book a beauty treatment. But if something were to go wrong with a treatment such as bodily harm or damage to property, a lack of insurance could mean it would be highly unlikely the victim would receive insurance.
Likewise, anyone looking to take over a beauty salon business should also be asking about any existing insurance policies since the business will need to be covered in case anyone takes legal action against it.
Many different parties can want to check that a beauty salon has insurance to avoid financial ruin should the salon lack appropriate insurance cover. To learn more about what insurance a salon should or must have or to get quotes, see the NimbleFins salon insurance comparison guide.
Where Is An Insurance Certificate Displayed In A Salon?
There are various types of insurance a salon may have. However, when it comes to employers’ liability insurance, it is a legal requirement to have this type of insurance and display the certification in a prominent place where staff members have access to it.
As for other types of insurance, such as public liability insurance or treatment insurance, there is no requirement to display the certification since it’s not a legal requirement. Again, though, such certificates and qualifications staff may have often been displayed in reception areas or within individual treatment rooms for customer peace of mind.
Some beauty salons may also list other insurance types by placing a sticker on their window, writing information on their website or stating so on social media pages. Ideally, though, salons should state their general insurance status in a place where customers have access to this information within the building itself.
What Insurance Should A Beauty Salon Have?
Any type of insurance should cover the nature of the work the business does, along with any potential risks that could lead to legal action or any financial loss to the business.
Within a beauty salon, the main aspects that require insurance cover are any employees, the safety of the public, treatments given, products used, the value of the stock and the potential for business interruption.
Here are some of the top insurance policies to look out for as a beauty salon owner which covers these elements.
Employers’ Liability Insurance
As mentioned, it’s a legal requirement that beauty salons have employers’ liability insurance and display evidence of this within the salon itself. Any beauty salon which doesn’t have employers’ liability insurance can be fined up to £2,500 for each day they have traded without it.
This particular insurance type will cover the salon owner against claims made by their employees, should they receive an injury or fall ill due to any event that takes place within the salon.
Scenario example: An employee trips over a cable, smashing their knee on the salon floor. They require surgery and cannot work for over a year. They sue their employer for the injury they sustained and the loss of earnings.
Public Liability Insurance
Beauty salons are public environments in which many people aside from just clients will enter. Public liability insurance covers any claims made by the public if they are injured or have their property damaged within the salon.
One distinction to be aware of is that public liability insurance does not cover accidents or damage that arise from beauty treatments directly.
Scenario example: A client is given a glass of water following a facial; only the glass is severed at the top. The client suffers a deep gash to their lip when they go to drink from the glass. They are a model and lose work because of the incident.
Treatment Liability Insurance
Treatment liability insurance will protect against claims made either due to injury or damage to property sustained directly because of a beauty treatment.
Considering beauty salons have a number of different tools, equipment and products that can cause injury or damage even when instructions have been followed correctly, this is one area in which beauty salon owners need to be careful.
Scenario example: While performing a wax treatment, a therapist accidentally burns the skin of the client. The injury takes several weeks to heal and requires ongoing medical care.
Product Liability Insurance
At the end of any beauty treatment, it’s standard practice that take-home products may be offered. But, if the products are found to be defective, or if they damage the client’s property, the salon that supplied the products may be liable to pay compensation.
Product liability insurance offers cover for products that are supplied to customers. Therefore, if the salon owner needed to claim on their insurance, any insurance costs would be covered along with the cost of legal representation.
Scenario example: An at-home peel is sold to a customer, but the strength is too extreme due to a batch fault. The client suffers a severe reaction and sues the salon.
Various other insurance types exist that may prove beneficial to beauty salon owners. This includes the likes of contents insurance, stock insurance, business interruption insurance, and cyber insurance.
It is the responsibility of the salon owner to research which insurance types apply to the business fully. In addition, the required insurance types may differ depending on whether treatments take place solely within the salon or in the clients’ homes.
To Sum Up
It’s a simple fact that any reputable beauty salon should be insured for its services. If this is the case, then the salon should publicly display certification proving that they are acting within the law and offering peace of mind to its customers.
Therefore, all salon owners should take the time to check that they not only have the full range of cover that they need but that their insurance policies are continually renewed to avoid possible financial ruin should any claims be brought against them, or if an event takes place that threatens their ability to trade.