lindsaykim88
New Member
hey guys, im doing my business assignment for my level 3 and i need to find out the average insurance you have to pay if you are a salon owner. i have tried looking on the web but am not getting much luck! please help!!
Business assignment
- Thread starter lindsaykim88
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Just Hair Ins
Well-Known Member
Hi, Salon insurance is (usually) issued by an insurance company's Shop/ Retail package policy.
Unfortunately, insurance premiums are calculated on the following factors: -
For nominal sums insured and 1 to 2 members of staff (hairdressers) premiums start from £200; but subject to the above factors.
Whatever the sums insured, Insurers automatically provide the balance of covers thrown in (already pre priced), these include the following: -
- Employers Liability; Indemnity for legal liability at common law and under statute to employees for death, bodily injury, disease, illness and nervous shock sustained during and in the course of employment with the company (Salon). The indemnity limit is £10 million as standard.
- Public Liability; Legal Liability to third parties for accidental death, bodily injury or accidental damage to third party property arising out of the business (Salon). The indemnity limit varies from £1 million up to £5 million dependent on the insurer.
- Hairdressers Treatment Risk; The Insurer will indemnify the Insured (Salon) against all sums that the Insured shall become legally liable to pay as damages and costs and expenses of claimants in respect of accidental injury arising from lack of care or skill in the carrying out of any operation undertaken in the ordinary course of a hairdressers and or beauticians business. The indemnity limit varies from £100,000 up to £5 million dependent on the insurer; the norm is £1 million.
This extension of cover is subject to strict compliance or the insurance company will refuse to indemnity the Salon and will not pay the claim/ award to the customer. The main items include: -
a) Undertake Skin Test/s
b) Comply with manufacturers directions/ guidelines
c) Sterilise razor/ clipper blades, steel combs or any other item which could pierce the skin or use brand new items
d) Adhere to the definition of a Qualified Hairdresser/ Beautician; varies with insurers but usually aged 18 and must have 3 years continuous hairdressing/ beautician experience or has 2 years technical college experience
e) Employees/ trainees not deemed qualified (per above point) must be supervised at all times by a qualified employee other than when washing/ drying of hair (or wigs)
f) What types of treatment (hairdressing or beauty) is provided ( a list will be provided)
- Business Interruption/ Gross Profit; Loss of Gross Profit following physical loss or damage to the premises or contents by an insured peril (e.g. Fire). The sum insured is usually £500,000 and notes a 24 month indemnity period (represents the maximum period during which insurers will provide cover in the event of loss or damage, reflecting the time necessary to rebuild or reestablish premises, equipment and resources)
- Money; loss of or damage to money/ injury as a result of robbery or attempted robbery (at Salon or whilst in transit). Limits vary from £500 to £5,000.
If you need specifics, I will gladly provide dummy quotations to illustrate an average premium if these are required contact me direct.
If you need any more info, check out our website or refer to our article published in Hairdressers Journal
http://www.hji.co.uk/blogs/2010/01/insurance-the-right-cover-for.html
I assume you have covered all things Health & Safety/ Risk Assessments; if not check out the HSEs Hairdressers Risk Assessment template on line http://www.hse.gov.uk/risk/casestudies/hairdressers.htm
http://www.hse.gov.uk/risk/casestudies/pdf/hairdressers.pdf
Good luck.
Unfortunately, insurance premiums are calculated on the following factors: -
- Post Code; to determine flood affected areas/ high theft and vandalism areas
- Location of the Salon; if a Salon is based in a Shopping complex the premiums are generally higher (dependent on the Complex) in view of high risk of terrorism
- Security; intruder alarm/ roller shutters/ security grills dependent on the area (City Centres which have a high theft/ vandalism experience), these maybe required before cover is provided but in the main any of these fitted lessen the risk and attract premium discounts
- Number of Qualified Hairdressers/ Beauticians; this is seen as the highest risk in view of the number of treatment claims and awards
- The sums insured for Contents/ Buildings (if insuring)/ Tenants Improvements (alterations to the fabric of the building, such as suspended ceilings/ new flooring etc) and Stock
- Claims history; 1 minor claim in the past 3 years can usually be discarded but anything beyond this will attract a premium claims loading
- Whether the Salon/ employees work away from the Salon; Photo Shoots/ In Competition etc
For nominal sums insured and 1 to 2 members of staff (hairdressers) premiums start from £200; but subject to the above factors.
Whatever the sums insured, Insurers automatically provide the balance of covers thrown in (already pre priced), these include the following: -
- Employers Liability; Indemnity for legal liability at common law and under statute to employees for death, bodily injury, disease, illness and nervous shock sustained during and in the course of employment with the company (Salon). The indemnity limit is £10 million as standard.
- Public Liability; Legal Liability to third parties for accidental death, bodily injury or accidental damage to third party property arising out of the business (Salon). The indemnity limit varies from £1 million up to £5 million dependent on the insurer.
- Hairdressers Treatment Risk; The Insurer will indemnify the Insured (Salon) against all sums that the Insured shall become legally liable to pay as damages and costs and expenses of claimants in respect of accidental injury arising from lack of care or skill in the carrying out of any operation undertaken in the ordinary course of a hairdressers and or beauticians business. The indemnity limit varies from £100,000 up to £5 million dependent on the insurer; the norm is £1 million.
This extension of cover is subject to strict compliance or the insurance company will refuse to indemnity the Salon and will not pay the claim/ award to the customer. The main items include: -
a) Undertake Skin Test/s
b) Comply with manufacturers directions/ guidelines
c) Sterilise razor/ clipper blades, steel combs or any other item which could pierce the skin or use brand new items
d) Adhere to the definition of a Qualified Hairdresser/ Beautician; varies with insurers but usually aged 18 and must have 3 years continuous hairdressing/ beautician experience or has 2 years technical college experience
e) Employees/ trainees not deemed qualified (per above point) must be supervised at all times by a qualified employee other than when washing/ drying of hair (or wigs)
f) What types of treatment (hairdressing or beauty) is provided ( a list will be provided)
- Business Interruption/ Gross Profit; Loss of Gross Profit following physical loss or damage to the premises or contents by an insured peril (e.g. Fire). The sum insured is usually £500,000 and notes a 24 month indemnity period (represents the maximum period during which insurers will provide cover in the event of loss or damage, reflecting the time necessary to rebuild or reestablish premises, equipment and resources)
- Money; loss of or damage to money/ injury as a result of robbery or attempted robbery (at Salon or whilst in transit). Limits vary from £500 to £5,000.
If you need specifics, I will gladly provide dummy quotations to illustrate an average premium if these are required contact me direct.
If you need any more info, check out our website or refer to our article published in Hairdressers Journal
http://www.hji.co.uk/blogs/2010/01/insurance-the-right-cover-for.html
I assume you have covered all things Health & Safety/ Risk Assessments; if not check out the HSEs Hairdressers Risk Assessment template on line http://www.hse.gov.uk/risk/casestudies/hairdressers.htm
http://www.hse.gov.uk/risk/casestudies/pdf/hairdressers.pdf
Good luck.
lindsaykim88
New Member
thank you so much all info was really helpful! life saver!
