5 of the most common beauty liability insurance claims

Have you considered beauty liability insurance? If you own a beauty salon, then you should be aware of the risks involved in this type of business and the benefits of having the right type of insurance cover. So, to help you understand the importance of insurance cover for your business, let’s take a look at five of the most common problems that affect beauty salons. 

  1. Burglary & theft

You might be surprised to learn that burglary and theft are the cause of many beauty liability insurance claims. Whilst it might not be as common for stores located inside shopping malls (because of the additional security), for beauty salons that have 24/7 pedestrian access it can be a real threat. The contents of your store can be stolen or trashed, locks and doors can be damaged, and windows were broken. The total claims might not amount to much in dollar terms, but it can put your business out of action for days at a time, particularly if vital equipment is stolen.

  1. Accidents in the beauty salon

Despite all the care in the world, customers and employees can still slip and fall in your salon, resulting in injuries, medical bills and loss of income. If you don’t have the right type of insurance cover, your business may face a substantial bill for these costs, particularly if you need to go to court. However, with beauty liability insurance, all these costs may be covered, and the insurance company will investigate the matter to make sure that the injuries and costs are substantiated.

  1. Injuries due to beauty treatments

Whilst all beauty therapists undergo rigorous training and are highly qualified, sometimes customers are injured or suffer an adverse reaction to a treatment. In these circumstances, the damage to your business’s reputation can not only be fatal, but the financial costs can be overwhelming. This is another instance when the right type of beauty liability insurance is vital to keeping your business operating, preventing you from suffering a crippling financial loss. 

  1. Natural disasters can close your business overnight

Floods, bushfires, electrical storms, torrential rain and high winds, these can all pose a severe risk to your business. Without the right type of insurance, you may be left to foot the recovery bill yourself, being unable to operate until the repairs are complete. These disasters can result in ceilings and internal walls collapsing, stock and equipment unusable, and furnishings and decor left in ruins. The right type of insurance cover can help you replace this stock, repair your salon and get back to business.

  1. Loss of revenue due to extended closures

Another common claim made by beauty salons is for the loss of revenue from being unable to trade. This is usually due to a natural disaster, as mentioned above, but whilst you may have cover to replace all your stock and repair your shop, who pays your bills? Not being able to operate means that you have no revenue, but your rent and your employees still need to be paid. Do you have the type of insurance that covers loss of revenue?

Beauty liability insurance, as well as many other types of business insurance policies are designed to reduce your business risk. It pays to be insurance savvy!

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