The Importance of Business Insurance

Small business insurance is a way to protect your business from financial losses like compensation claims, property damage or theft.

Your insurance company can tailor your quote and choose from different cover options to meet the needs of you and your salon business. It is therefore vitally important to understand the risks your salon might face and be reassured that you won’t be left out of pocket if something unexpected does occur.

As an employer and business owner, it is your responsibility to protect your business, clients and employees.

To receive a quote for your salon business, you will need the following information:

• Your name and address

• The name, address and nature of your industry business

• Whether you are a sole trader or a limited company

• Number of employees

• Details about your premises

• Your range of services and products

• Your projected turnover

Your insurers will then be able to use these details to determine how much to charge you for a policy.

The main types of business insurance are:

1. Public liability insurance provides cover should a member of the public injure themselves or make a claim against your business. For example, someone slipping and injuring themselves on your premises.

2. Employers’ liability insurance protects you, your business and your employees, should a member of staff lodge a complaint. For example, a team member tripping over a cable, falling, and breaking an ankle.

3. Product liability insurance can protect your salon should a client make a claim against a faulty product you have developed. For example, if you produce your own skincare items and a client, after purchasing such products, makes a claim that they do not work.

4. Professional indemnity insurance is designed for professionals and salons. It provides cover should certain errors occur while performing professional services. This will prevent you or your staff from being sued by a client or third party for problems or adverse reactions that might occur as a result of a professional service. It provides peace of mind and allows you and your staff to work with greater confidence.

Professional indemnity insurance dates back to the 1700s. Today, the risks of something going wrong is as significant as ever, and mistakes can cause an owner to lose his or her reputation and business should there not be adequate cover from n insurance company.

Depending on the policy purchased, it will cover negligence, errors and inability to follow correct procedures. It should also cover the liabilities, which are the result of negligence, such as business interruption and the significant legal costs incurred from being sued.

Some policies will also offer protection for business or financial loss caused by defamation, loss of paperwork, dishonest conduct of employees, and unintentional breach of confidence.

Having insurance that covers technical work is also important as it allows you to offer services without incurring additional costs should mistakes occur.

Without insurance, salons are exposed to a great deal more business risk, It is far better to take out an insurance policy to protect you and your business against any undesirable business outcomes so that you can operate more competitively as a result.