As an aspiring salon owner, you’re likely well aware that the success and longevity of your nail salon relies on more than just delivering skilful nail treatments and ensuring satisfied clients.
One vital component of running a nail salon is obtaining a comprehensive insurance plan to shield yourself from potential liabilities. Astonishingly, a whopping 17% of all beauty salon insurance payouts result from nail treatments gone wrong, according to a 2022 report.
In this guide, we’ll delve into the world of insurance and discover how these three vital policies can provide peace of mind and a secure future for your nail salon.
1. Public liability insurance
According to the specialist brokers at Salon Gold, “public liability insurance is the backbone of any nail salon insurance policy, and protects you should your work activities cause injury or property damage to a third party.”
Given the constant customer interaction that comes with running a salon, prioritising public liability cover is imperative. This kind of insurance covers legal fees and compensation for injuries or illnesses suffered by your customers, suppliers, or the public while in the salon — including slips, trips, allergic reactions, and burns. It offers financial support and peace of mind for potential liabilities.
As touched upon earlier, public liability insurance also covers for property damage. So, if you accidentally spill acetone on someone’s clothes or get polish into their handbag, you can rest assured knowing that the associated costs will be taken care of by your insurance policy.
2. Employer’s liability insurance
Employer’s liability insurance is a crucial type of coverage that safeguards you as the employer, in the event that your employees file compensation claims against you due to work-related injuries or illnesses. Whether you have full-time, part-time, or temporary staff working at your nail salon, it’s important to note that employer’s liability insurance is a legal requirement should you hire employees.. Failure to comply can lead to fines of up to £2,500 per day for each day your business operates without the necessary coverage.
Beyond the legalities though, employer’s liability insurance is a crucial safety net that helps cover you financially if an employee gets injured or becomes ill while carrying out their duties within your salon. It ensures that you are prepared to handle potential claims and helps mitigate the financial impact that these could have on your business.
3. Product liability insurance
As a nail salon owner, you likely offer a range of products to your customers, including nail polishes, lotions, and other beauty supplies. While you strive to provide safe and high-quality products, issues can still arise. Product liability insurance is essential in these cases.
This third type of insurance covers the costs of legal expenses and compensation payments that may result from claims related to defective products sold or used in your salon. Even if you didn’t manufacture the products yourself, you can still be held liable for any harm they cause to your customers.
For example, if a client has an adverse reaction to an expired nail polish or sustains an injury from a faulty cuticle remover, they could sue your salon. Product liability insurance offers financial protection in such situations, helping you address claims without putting your business at risk.