BizCover, Australia’s number one online business insurance service, explains why you may want to make your business insurance a priority in the new year.
The calendar year is wrapping up, and plenty of salon owners have an eye on what’s coming in 2024, but here’s one trend you don’t want to miss: reviewing your business insurance.
Beauty businesses have had a rough go over the past few years. The last thing you want is for inflation, a cyberattack, or cost of living pressure to create an ugly situation for your salon. Reviewing your business insurance could help you manage these growing challenges.
Avoiding Underinsurance
Underinsurance happens when you do not have adequate insurance limits to cover losses when you make an insurance claim. As the cost of most goods and services becomes dearer, gaps in your insurance cover could prove devastating for your salon. Inflation—an unfortunate 2023 trend—could worsen the impacts of underinsurance for many salons.
Consider this: A fire rips through your salon. You must rebuild parts of the premises, replace equipment, and restock before reopening. Unfortunately, it is more than likely that the cost of many products and services (including your fixtures and fittings through to building materials) have gone up since you bought your cover. You may suddenly find yourself thousands of dollars out of pocket even after the insurance claim is approved.
Reviewing your business insurance limits can help you determine if you have enough cover to protect your salon should you ever need to make a claim. It can also help you decide if you have the right type of insurance to cover your business activities and different risks.
Addressing Cyber Threats
Small salons may want to rethink their cyberattack risk. A survey by the Australian Cyber Security Centre (ACSC) found that 62 per cent of small businesses who responded had experienced a cyber security incident. These attacks can be expensive, with the ACSC reporting an average cost of $39,000 per incident to small businesses in 2021-22.
With many salons relying on common tech to keep things running—like computers, tablets, mobile phones, and POS devices—Cyber Liability insurance† could provide a vital backup plan should your cybersecurity efforts fail.
Cyber Liability insurance helps you manage the costs of a cyberattack, like notifying affected customers and covering business interruption expenses directly caused by the incident. Many policies also provide 24-hour incident response services that can help you reduce the impact of an attack and get back to work faster.
Stretching Your Budget
What’s one trend that never goes out of style? Saving money on your business insurance. With the cost of living continuing to rise, stretching your dollar may be more important than ever in 2024.
Comparing quotes from different insurers is a great way to find potential insurance savings. BizCover makes this easy, letting you compare essential policy options from selected leading Australian insurers.
In as little as 10 minutes, you can compare quotes, get instant cover and save. Take Lyn, a beautician who saved $1,200 on Public Liability and Professional Indemnity insurance for her NSW beauty salonin March this year.
Visit www.bizcover.com.au or give us a call to tick ‘reviewing your insurance’ off your 2024 to-do list!