How to protect your beauty business against rising insurance costs

The beauty industry has seen a significant rise in the cost of insurance premiums over the past few years and there are several reasons for this – an increase in the number of aesthetic-type treatments being carried out, the un-regulation of those treatments leading to unqualified or inexperienced staff carrying out those treatments, and a huge increase in claims. 

The traditional beauty salon is fast disappearing in terms of the type of treatments being offered to clients. Not many businesses can now compete just by offering standard treatments like nails, waxing and facials.  

To make an impact and profit, more salons are turning to high value offerings such as laser-based treatments, IPL and fat reduction. Although these treatments can be hugely profitable, they leave the salon open to more things going wrong and the level of professionalism and care to the client increases significantly. 

Although change is coming, as it needs to, the proper legal requirements for staff carrying out these treatments has not been in place and this has led to inexperienced and unqualified people carrying out invasive and potentially dangerous procedures on clients. 

This in turn has led to a huge increase in claims and has seen the insurance companies look to protect against these by raising premiums and making certain treatments extra add-ons to policies. 

This had led to the no win no fee solicitors looking at the beauty industry as an easy target and moving forward, I think we will see more of these firms advertising and promoting their services to clients visiting our salons and clinics. Some have even set-up dedicated departments that deal exclusively with claims against businesses within our sector.

But, how do we go about trying to lessen the impact on our businesses individually?

There are several measures you can take to ensure you protect yourself, not only from rising premiums but also from claims being made against you:

Paul Beatty is managing director of Beauty and Man at the Gate in Holton-Le-Clay, which won the 2018 North East Large Salon of the Year Professional Beauty Regional Award

Hear from other PB Award-winning salons on the link between employee happiness and customer satisfactionand the pros and cons of self-employed vs payroll staff