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Do hairdressers need professional indemnity insurance?

What is Professional Indemnity insurance?

Professional indemnity insurance is a type of insurance commonly associated with professional advice given by accountants, lawyers, engineers, and other professional services. Professional indemnity insurance generally covers financial or legal costs that may arise due to negligence, error or omission in professional advice given.

But what about hairdressers, do hairdressers need Professional Indemnity for the advice that they give to their clients?

Do hairdressers need Professional Indemnity insurance?

As a hairdresser you know that you are giving advice all the time, from what styles are current, to what products to use and what treatments will give the outcome your clients are looking for. However, at the end of the day hairdressers are primarily a service provider rather than a professional advisor which means that professional indemnity insurance is not usually the right fit for them.

Some insurance advisors may recommend it, but at Grace Insurance we think there is a better way to cover your hairdressing business.

What insurances do hairdressers need?

For the advice and service that a hairdresser provides, rather than professional indemnity insurance, one of the most relevant types of insurance for a hairdresser is public and products liability insurance.

Imagine you’ve had a consultation with a client and performed a treatment that somehow damages their hair or scalp. This may result in consequences such as adverse reactions, scarring or health issues for which you may be liable. Should your client pursue compensation or legal action for damages, Public Liability coverage is generally the most appropriate protection when injury has occurred. Or should a product you sell cause an adverse reaction at home, then product liability insurance may cover your hairdressing business for claims made.

It is not only Public and Product Liability insurance that a hairdresser requires to protect their business from the unexpected. Other types of insurance that may be important for a hairdresser to look into include:
  • Building and/or Glass Insurance
  • Contents Insurance
  • Portable Equipment Insurance
  • Business Interruption Insurance
  • Business Insurance
  • Cyber Insurance

You may not have considered Cyber Insurance for your hairdressing business. However, Cyber Insurance is important for any business that holds customer data or processes payments electronically, including hairdressers.

But what about different types of hairdressers who don’t necessarily operate a salon? Do all hairdressers need the same insurance types?

What insurance do hairdressers who lease a chair, or mobile and work from home hairdressers need?

You may operate a salon in your own premises or rented premises, or you may structure your hairdressing business differently, by leasing a chair, working from home or having a mobile hairdressing business. Every hairdressing business will require insurance coverage, however, the insurance coverage you need will differ depending on the structure of your hairdressing business and your unique set of risks.

You may find that leasing a chair, rather than leasing a full salon space, excuses you from building and glass insurance, but still requires you to insure your specialist equipment and to have public liability insurance to protect your clients as well as your suppliers (including the operator of the salon you lease a chair from).

Mobile hairdressers may need other coverage such as business car insurance or portable equipment insurance. You will also need to check whether your other insurances cover you in different locations rather than in one space.

How can I find the best cover for my hairdressing business?

The complexities of covering your unique hairdressing business are easily navigated by an experienced insurance broker who has worked with hairdressers before.

At Grace Insurance we have helped many businesses like yours determine exactly what sort of insurance you need for your hairdressing business to cover the different risks you face. Reach out and connect with us today to find the right solution for your hairdressing business.

General Advice Warning: This advice is general and does not take into account your objectives, financial situation or needs. You should consider whether the advice is appropriate for you and your personal circumstances. Before you make any decision about whether to acquire a certain product, you should obtain and read the relevant product disclosure statement.

All information above has been provided by the author.

Aimee Henderson, Grace Insurance, ABN 63 133 156 742, AFSL 233750

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