Understanding salon insurance might not be the most exciting part of running a salon, but it’s one of the most important. When things go wrong, knowing what your policy does (and doesn’t) cover can be the difference between a quick recovery and a major setback.

We’ve put together a practical guide to five essential insurance terms that often catch salon owners off guard. Whether you’re new to the industry or have years of experience, understanding the basics will help you stay protected and confident.

 

Business Interruption

What it means: Protection for your income if your salon has to close unexpectedly. If something like a fire, flood, or burst pipe forces you to shut your doors, this cover can help replace the income you would have made during that time.

Example scenario: A leak from the flat above causes a ceiling collapse. The salon has to close for four weeks for repairs. Business Interruption cover pays for lost income and fixed costs like rent, helping the business stay afloat during the downtime.

Tip: Many policies only provide 12 months of cover, which might not be enough if your repairs take longer. It’s worth checking.

 

Treatment Risk Cover

What it means: Covers injury or damage caused by treatments you provide. Most salon owners assume Public Liability covers everything, but it often excludes accidents during treatments. That’s where this cover comes in.

Example scenario: A client has a severe allergic reaction to a lash lift. The treatment wasn’t listed on the policy, so the stylist had to cover legal costs personally. Had Treatment Risk been in place, and the treatment properly declared, the outcome could have been very different.

Tip: Always ensure every service you offer is listed on your policy. If it’s not specified, it’s not covered.

 

Employers’ Liability

What it means: Covers you if someone working for you becomes injured or unwell due to their work. This cover is a legal requirement in the UK if you employ anyone, even if they’re part-time, on work experience, or casually helping out.

Example scenario: A salon owner was fined for not having cover in place for a Saturday assistant who wasn’t technically an employee but was working under their direction. The law still applied.

Tip: Penalties for not having Employers’ Liability insurance can reach £2,500 per day. It’s a legal obligation, not an optional extra.

 

Stock & Contents Cover

What it means: Covers the cost of replacing stolen or damaged items in your salon. This includes tools, stock, furniture, tech, essentially everything that keeps your salon running smoothly.

Example scenario: A break-in results in the theft of colour stock, straighteners, and laptops. With this cover in place, the salon is able to replace everything quickly and minimise disruption.

Tip: Don’t underestimate the value of your equipment, it can affect how much you’re paid out in a claim.

 

Public Liability

What it means: Protection if someone is injured or their property is damaged while in your salon. This is one of the most common types of insurance claims in the industry and covers legal fees as well as compensation costs.

Example scenario: A client slips on a wet floor near the backwash and breaks their wrist. Public Liability insurance covers the cost of the claim, including legal representation.

Tip: Make sure the limit on your policy is high enough, legal and compensation costs can escalate quickly.

 

Final Thoughts

You don’t need to become an insurance expert, but a working understanding of what your policy includes can help you run your salon with greater confidence. It’s about avoiding surprises, staying compliant, and protecting what you’ve worked hard to build.

If you’re unsure whether your current policy covers everything it should, or you’d just like a second opinion, we’re always happy to help. Click here to get in touch.