Do you need both public & product liability insurance?
Accidents happen, we all know that, but when it happens in your salon and you don’t have the right insurance cover in place it can be financially catastrophic to your business. This is where you need public & product liability insurance, because your business can be held legally responsible for property damage or physical injuries that occur to third parties. However, if one of your employees is injured at work, they will be covered by Worker’s Compensation Insurance. This is another insurance policy that you are actually legally required to take out if you have at least one employee.
It’s most probably comes as no surprise to learn that the employees and customers at your hair salon are exposed to numerous potential accidents every day. From slipping on a wet floor to scissor cuts, chemical and water burns, hair salons can be dangerous places. There’s also the problem when a customer is injured from using one of the products sold to them in your salon.
All of these issues mean that as the owner of a hair salon, you need both public & product liability insurance to reduce your risks if your salon is sued by a third party. Let’s take a look at both of these different types of insurances (with examples), so that you can understand why both of these policies are essential for your hair salon.
What is product liability insurance?
Whilst you don’t manufacture products in your hair salon, you do mix products for bleaching and colouring, and you sell other people’s products to your customers. If you make a mistake mixing these products for example, then you need professional indemnity insurance, not product liability insurance.
On the other hand, if you sell a product to a customer and it burns their scalp or makes their hair fall out then you need a product liability policy. In this case, you have a legal responsibility because you sold the product to the client, in good faith, but it’s still your responsibility. Of course, if you actually manufacture your own products and sell them to your customers, you also need this type of insurance to cover your risks. This policy will cover your legal costs and any compensation ordered by the courts.
What is public liability insurance?
This policy reduces your risks in the event that a third party (customer, shopper, supplier, cleaner etc.,) is injured in your salon or third party property is damaged. An example of third party injuries is when a customer falls as she is sitting in a treatment chair and bangs her head on the sink. An example of property damage is when a customer drops her mobile phone and the treatment chair rolls over it, breaking the glass. Property damage can also include losses suffered by an adjoining property if your salon catches fire or floods due to a candle catching a towel on fire. Often, both public and property damage policies are a requirement when you lease a commercial property for your salon.
Apart from public & product liability insurance, there are also other types of insurance policies that important for owners of hair salons. Two of these have been mentioned above (Worker’s Compensation & Professional Indemnity), but there are others that are just as important. Why not call one of the Salonsure insurance specialists to discuss your needs?