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When setting up a business, it will not be too long before you consider what insurance policies you need in order to comply with the law and protect yourself from insurance claims that could threaten the existence of your business and possibly put you at the risk of ruinous personal losses. But there are very few hard and fast rules about what insurance policies you need to get so keep reading if you want to find out more.

Employer’s liability

Employers liability insurance is the only insurance-policy that companies are 100% legally required to procure if they have any employees. This covers the cost of damages and legal fees incurred if employees are injured or are made ill through the fault of the employer and is compulsory to ensure employees do not miss out on their rightful compensation. NHS costs can also be recouped. The minimum level of EL must be £5million, while most policies provide cover up to £10million. You must display an up to date certificate and can be fined up to £2,500 for every day you are not covered.

What type of company is your business?

There are a few situations where a company does not require EL: if it is not a limited company and you or your close family members are the only employees it is not essential and limited companies with a sole employee who owns at least 50% of it are also exempt. But in many cases these businesses do invest in a policy because the cost otherwise can be ruinous. If your business is not a limited company then you can be held liable for any damages, so insurance is even more critical.

Public liability

If you own premises or work in close proximity to the public then you should definitely get public liability insurance. This covers and damage or loss suffered by a member of the public caused and will mean your insurer pays expenses, legal fees, damages and medical fees. Your premium will depend on the type of business you are, so construction companies can expect to pay more than a marketing company, while horse riding companies are required by law to be covered. If you sell or give away any physical items that causes damage or loss and is considered not ‘fit for purpose’, product liability will cover you. The normal amount of cover is £2million.

Professional Indemnity

If it isn’t products you sell but, instead, your knowledge or skills you should find the best deal on professional indemnity insurance. PI protects you if a client makes a claim for a loss or damage that came about as a result of your negligence, and also covers legal costs of fighting the claim. There are a number of professions where PI is compulsory, including solicitors, accountants, architects, mortgage brokers, financial advisers and charters surveyors while most designers, PR agencies and advertising firms are covered too.

Specialist policies

There are a number of industries which require their own special insurance policies – like commercial property owners should have Landlords-insurance – and it is best to seek the advice of a specialist federation or a broker specialising in business insurance.

There is no set policy, no matter what the salon insurance costs, that provides the entire cover as standard. For a start, there are so many different types of salons, ranging from hair salons, hair extension salons, salons specialising in beauty treatments, nail salons, slimming salons, massage salons and tanning salons. Most however, have one thing in common, and that is they specialise in female beauty. Not that men keep away from salons; the modern man certainly goes out of his way to keep trim, tints to hide any grey hair and professionally manicures his nails. Beauty products now go all out to attract male buyers, and many men thoroughly enjoy having a facial or a massage.

With all this on the go, it is definitely essential to weigh up salon insurance costs. The two most important items of insurance for consideration are

• Public Liability insurance to cover your business in case of customer injury or else their property damaged through your business. The claim for these costs could be large, and without insurance, your business stands a chance of being crippled financially.

• Employer’s liability insurance to cover staff in your employ for illness through the business, or any injury on the premises, and legal expenses, should they occur. Employer’s liability insurance is a requirement by law.

There, are several optional cover types for salon insurance worth looking into as protection for the business, when you are considering buying insurance and are weighing up all the costs involved.

• Professional indemnity,
• Your business equipment
• Cover for your stock
• Cover for employee theft
• Revenue protection
• Fixtures and fittings
• The glass front of your premises

Starting a business is not just a case of opening the doors for the type of business or salon that you want to be in; there are licences, insurance and other cost factors that you have to take into account as well. Even if your salon is a home run business, you have to think about insurance and other costs carefully before you start. You stand the same chance of things going wrong at a home salon as you do in a salon situated inside a commercial building.

Look up salon insurance costs and get quotes at specialistrisks

When running a business you need to be absolutely certain that you have thought about all possible things that could go wrong and cause a potential loss of earnings. The main ones of these are usually things that stop you from opening up; such as a fire, floor, or damage that could be caused by criminals and vandals. These are some things that can often not be avoided, but may still happen. For things like this; you can get specialist insurance to cover it. One of the businesses that you may run could be a restaurant. And so you will need the specific restaurant insurance to cover it. The restaurant insurance can cover many different things (lots of information available at Restaurant Insurances.co.uk). These include public liability, employers liability, potential stock in transit problems, and business interruption.

Insurance is a very important thing to take into account when starting a business up. This is because you can not foresee what will happen in the future, and accidents always happen. Employers liability insurance is set up so that you can protect your members of staff in the event of any accidents happening to them. For instance, if someone spills a drink in a comment pathway that people have to walk down to serve food to customers, and someone slips on this drink because it was not properly dealt with, they are liable to claim for any compensation they may require. This could be anything from simply injury compensation all the way up to compensation because they are no longer able to work.

Public liability insurance covers your business in the event of any member of the public inside the service area of your restaurant getting injured through any accidents that may happen. For example, if a member of staff trips over and drops a scalding hot dish onto a customer, then they are likely to claim for their injuries and potential damages to possessions as well. This is where you need your public liability insurance as if they do claim, your insurance pays out all of the expenses. If you did not have the public liability insurance and this proceeded to happen, then you would have to pay out of your own pocket for any claim that the customer may wish to bring upon you. This can often lead to the closure of the business entirely, as it may be seen as an unsafe workplace, which means it should not be open.

Stock in transit insurance is designed to cover you from any accidents that may happen when your stock is being transported to you. For example, should the transport system stop for any reason, such as a crash, you may not be able to open your restaurant as you would have liked to; which will lead to a loss of earnings. This is what the insurance is designed to cover as it is no fault of your own that this has happened, and sometimes it is not possible to avoid these situations as they are accidents, people do not mean to crash after all!