As the old English saying goes,
‘Stitch in time saves nine.’
Taking the precaution never hurts, does it? Then why hesitate in taking insurance over your livelihood? If you are a salon owner and your earnings come straight from the salon, you need a backup in case things go southside.
You might wonder why insurance is necessary for a salon as the business is ever-lasting, the customers keep coming and it’s a bustling time at every time of the year. Even if your salon is one of the most famous and busiest at every hour in every season, insurance. Why do you ask?
In this blog, we will resolve this curiosity of yours as we convince you into getting insurance for your salon. Keep reading further!
The story of a Drowning Business:
I know Kevin for a long time. We were in school together and then graduated from the same college. After graduation, our paths diverged and he established a salon in the neighbourhood. Initially, word of mouth spread and clients started coming in. For a long period of time, his business boomed and flourished around the town. He hired many new professionals and established a foothold in this business. But, it cannot always be the day.
One day, while giving permanent curls to a female customer, one of the staff members burnt her hair slightly. Not much harm was done, but the customer got furious. Such accidents were prominent in every salon but she was adamant to not let this go. She sued Kevin and his salon on the grounds of ‘dangerously handling deadly equipment.’ Kevin went in grave peril. He tried to reason with the customer but it eventually took to court and the customer won the case. I remember Kevin asking everyone for help but we were quite helpless at the time. We asked if he had insurance, and he denied it. He regretted not having insurance in those days.
He went bankrupt, the court took away his license and he lost his salon. Today, he is working as a clerk to fill in the debts of his past professional.
What would have happened if he would have had the Public Liability insurance? He would certainly not be in this condition as he would still have the capital to make his business function. Therefore, dear salon business owners, be very sure to have insurance.
Still not convinced if you should take insurance? Read along!
Why insuring a salon business is important?
In the salon business, your reputation matters the most. And thus, once you are acclaimed in any kind of an accident or involved in a lawsuit, your reputation might fall down ungraciously. So, having insurance is extremely necessary at these times.
Of course, it’s better not to hurt customers, but as mentioned above, accidents do occur. And if you fall into this situation, anyone who is accidentally injured or whose property is damaged by your actions may claim damages against you.
If this person processes the claim promptly and professionally by your liability insurance company, they can be much more forgiving. Instead of complaining about you to everyone they meet or to social media as a whole, they may recommend your salon.
Helps in Keeping loyalty in your clients
As stated in the previous blogs as well, keeping the loyalty of your customers is very important (Read our blog on ‘How to have an effective customer relationship’). Thus, having insurance helps in creating faith among your customers. They would be loyal to you as they would understand the gravity of safety you assure them and the professionalism you promised.
Most salons tend to have a lot of regular customers. And repeaters are great because it costs a lot of money to find new clients, especially if your salon is in a city with contemporaries.
For this reason, being unable to trade because of something unexpected has been a bigger problem than losing the income you lose while the salon is closed. If a patron has to go to another salon while the store is closed, it’s likely that you’re a patron at that salon instead of you, and it can be difficult to get back. Insurance that supports the restoration and rapid operation of the salon means that patrons are unlikely to find that they need to go elsewhere.
Helping in Claims
As stated above, it would be a ‘disgrace’ for the salon to be in a legal case, that too, if sued by a customer. Thus, it is necessary to be ‘insured’ in case there comes a stain in your name. It is very normal in the salon industry to have ruined businesses due to accidents.
Legal fees coverage and legal responsibility coverage are forms of coverage that assist you in this respect. Legal fees coverage protects you from surprising criminal payments that get up while you turn out to be concerned in a criminal action. Liability coverage protects you if a reimbursement declaration is made towards you.
But in addition to shielding you towards the monetary outlay within the occasion of a declaration, those forms of coverage additionally provide you with get entry to a legally educated crew and certified solicitors that may take care of the declaration on your behalf, leaving you to get on with running your salon.
Did you know all the Chartered Accountants and even the government has made it extremely crucial for one to have insurance no matter what kind of business they have? This is because in any kind of business it might be, losses occur constantly and no one has enough capital to ensure enough loss in one’s business. Thus, many legal requirements state for any business, especially a salon business which runs on heavy equipment, to have insurance.
Most types of insurance are not required by law, but if you want to hire someone, you need to have legal liability insurance. This type of insurance covers you if an employee makes a claim against you claiming that you were injured by what you did or did not do. If you have employees but do not have employee liability insurance, you will be fined up to lakhs per day. You also need to display the Employer Liability Certificate in the salon so that employees can see it. If you do not display it, you may be penalized.
Thus were the many pointers on why is it so important to have insurance for your salon business. We hope that you are convinced to ensure your business and will be doing so as well.
If you found this blog useful, do not hesitate to like it and share it with your friends and family who have a salon but do not own insurance.
Stay tuned for more updates!
Q.1 If we have an employee but do not have an employer’s liability insurance, what might happen?
Ans. If you have any employees but don’t have employer’s liability insurance, you can be fined up to 1 lakh per day.
Q.2 I am an owner of a salon. What reasons might be which would involve me in some legal action?
Ans. They can be –
– Disputes with neighbours or clients
– Criminal charges being made against you
– Employment tribunals
– Tax/VAT inspections
Q.3 What is personal accident insurance?
Ans. Personal accident insurance replaces your lost income when you’re unable to work due if you have been injured or you are ill by paying a weekly benefit.
Q.4 Is a glass cover insurance necessary?
Ans. Salons tend to be in stores, so there is a risk of front window damage due to theft or attempted vandalism. Not all salon insurance covers broken glass, but most professional salon insurance providers have an extension of glass coverage that covers the cost of replacing broken glass and glass labels on your property. We guarantee that you will be covered by insurance.
Q.5 What does liability insurance covers?
Ans. Liability insurance covers claims against you if someone believes you are responsible for personal injury or property damage