Common Beauty Insurance Claims
As much as we like to hope otherwise, unexpected events happen! Things can go dreadfully wrong despite the best efforts we take to prevent them – and the simplest of setbacks can have a devastating effect on your business. We look at the most common claims beauty & hair salon owners are likely to experience – and show you how much having good business insurance coverage can save a small business.
In Australia we are no stranger to the devastating effects of natural disasters. Whether you own your own building or lease your salon premises, it’s important to take into consideration how you would recover should a disaster happen such as fires, storms, and floods.
As our client Amanda knows all too well! Her beauty salon suffered extensive storm damage after in 2016. Heavy rain caused part of the gutter to collapse causing damage to both the ceiling, walls and some stock.
Amanda lodged a claim along with a quotation for repairs to the building and replacement of her stock. Within a few days her insurer paid out $11,265 and she was able to get back to business in no time.
Lock your doors
According to recent claims data, burglary and theft are one of the most common claims arising from the professional beauty industry; however, it is usually the least expensive type of claim. Regardless of the security measures you take, having a policy that provides coverage for stolen contents and/or stock can mean the difference between continuing on running your salon as normal or experiencing disruption of your day to day trading which can end up costing your business.
Deanne’s beauty salon was burgled during the early hours of the morning with the offenders breaking in through a door by damaging the door and locks and they even disconnected the alarm.
Deanne’s Laser machine worth $5,550 was stolen, as well as some other minor stock items from the salon which resulted in a total payout of over $6,214.50 for Deanne.
Slippery when wet
Whether you operate a salon, run a home-based business, or provide a mobile service, no matter what precautions you put in place, there is always a risk of injuring or damaging someone or something. It is important to identify, manage, and prevent any risks within your business, it is just as important, if not more, to ensure your business is covered against such risks with Business Insurance.
Natasha, the owner of a day spa who employs a number of beauty therapists notes, “I rent my premises and it was a requirement under my lease agreement to hold a Public Liability policy. I’ve always enforced the strictest health and safety procedures, so I never really thought any accidents could happen”.
Yet, in late 2013 a therapist who we’d recently employed, failed to replace a non-slip mats in one of the spa rooms after cleaning up. The next customer, slipped and fell down sustaining a broken leg and ligament damage to her left foot. She instigated legal proceedings against the day spa for the cost of the medical treatment she incurred as a result of the injuries sustained, as well as the loss of her income as she was unable to work.
The entire process took 2 months to finalise and total costs incurred for the insurance assessor and solicitor’s were over $22,250.
Back in business
Have you ever stopped for a moment to consider what would happen if a disaster or catastrophic event disrupted the normal daily operations of your salon? Would your business survive? Fire, flood, and the loss of utilities or even burglary can cause your business to come to a grinding halt.
It takes time to recover from a major claim.
Fortunately for Loretta, her Business Interruption cover came in handy after her hair and beauty salon was temporarily shut down when a fire broke out. Loretta was busy working on a client when she noticed an electrical burning smell. “I looked to the back of the salon and noticed smoke, it was coming out from the back of the shop”, says Loretta.
If the fire had been worse she could have potentially been out of business for a few weeks, or even months.
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