Knowledge Centre
Hair and Beauty Podcast
26th July 2007 Duration: 6m 30s File size: 3MBAn overview of the MORE TH>N BUSINESS Hair and Beauty insurance product, designed especially to cover areas of risk associated with a hair and beauty business.
Tags: Hair & Beauty, Retail & Shop
The MORE TH>N BUSINESS Podcast with Toby Langford.
Today – All Cut and Dried in the Hair and Beauty Business. Or is it?
As a tenant what about all you’ve invested in the look of your salon? Toby Langford – MORE TH>N BUSINESS: If you turned the premises upside down whatever fell out would probably be your contents and whatever doesn’t fall out - that’s yours - is probably what we’d call tenants improvements. It’s amazing the number of people who forget how much they’ve invested in that. Jane Markham - Podcats: Contents insurance alone wouldn’t cover it. Insurance underwriter Toby Langford: Toby: It might be very easy for people to think that the only risks that you get with Hair and Beauty are the health and safety risks, and there’s no question that those risks are there, but there are also other things that you probably want to be thinking about. When we look at the claims we get through we see thefts and we also see examples of malicious damage. How much is it going to cost if someone grafittis the outside of your premise? You’ll need to pay somebody to get that cleaned up.
When you come on to the area of theft I certainly know that when I was surveying in a particular area I went to a salon where they’d had a theft and a number of other salons in the area had also had thefts. The police were telling them that it was almost as if someone somewhere was setting up a salon and these things were being stolen to order. Jane: And it’s not just the hardware. Toby: We noticed that a lot of Hair and Beauty Salons are now retailing some quite expensive hair products as well as having some pretty expensive equipment - so it’s another area to think about.
One of the other things that has come to our attention with Hair and Beauty is that in a lot of cases these people are tenants, and when you think about the salons you’ve been in, certainly the ones I’ve been in, they’re quite well decorated. They’ve got the laminate floors, they’ve got nicely tiled walls and whatever and actually they’ve gone into premises that they don’t own and they’ve spent a lot of their own money to make those premises look good, so one of the things you need to be thinking about when you phone an insurance company for your cover is, how much would it cost me to replace all that if there was a fire? So you are almost thinking as if part of the building is your own. Jane: In ‘insurance speak’ they are known as tenants improvements. Toby: The way that we tend to define it in the insurance industry is if you turned the premises upside down, whatever fell out would probably be your contents and whatever doesn’t fall out - that’s yours - is probably what we’d term tenants improvements. It’s amazing the number of people who forget how much they’ve invested in that side of their business and when it comes to a claim of course if you’ve underestimated how much something is worth then, in the event of claim, the amount of claim payment is reduced proportionally. The classic example is if your tenants improvements are worth £20,000 and you’ve only insured them for £10,000 then the most you are going get paid out is £10,000 and even if you have a small claim we’re only going to pay out half the amount of the loss. So, that’s one to think about.
We did do quite a lot of research and we asked customers for their views. One of them was - why they can’t insure for interruption arising from damage to the shop front? I think this comes back to the idea that a lot of people are tenants in the premises. They are not actually insuring the building so it’s quite possible that there could be damage to the shop front and it’s not up to them to get it sorted out. If it was they’d get it sorted right there and then but actually they are tenants and they are reliant on their landlord. That’s one of the areas we’ve been thinking about. The other thing is that they’ve got a lot of visitors - a lot of guests - on the premises with their own personal effects.
One of the other areas is the treatments that they do. One of the areas we’ve focussed in on is hair treatments. Now it’s fairly obvious if you’re a hair salon you’re going to do hair treatments so we think that it’s only fair that if you get our basic cover there’s already cover in there for hair treatments - which is not always the case. Jane: Once upon a time you didn’t admit that you’d had your hair dyed. But nowadays having a hair colour is just the norm and there are lots of new hair and beauty treatments Toby: We get a lot of enquires from hairdressing salons, and the hair and beauty industry generally, and we found that our product was very competitive for these guys so we thought, why not do a bit of research and really understand their needs and develop something specific. Jane: When you started this research you had shoulder length hair and then at each salon you had a little more off and a little more... Toby: I’ve had my number zero for a number of years! Jane: I beg your pardon – number zero! Toby: (laughs) But yes it’s amazing how many treatments there are out there and I did make a note of some of the ones we’ve got on our list (and this is not exhaustive by the way) for example acupressure, micro current treatment, nail extensions, sugaring, tanning sprays, massage, all of these things, as an insurance company, we’ve had to go out there and learn about all this stuff so that we can offer a product that meets the needs of the hair and beauty industry. Jane: It was a tough job - but somebody had to do it.... Toby: We also recognised that water is important. It gets a lot of usage in a hair salon so we’ve increased loss of metered water cover to £5000 for our salons, and we’ve increased personal effects cover to £750, as well as introducing cover so that if your business is interrupted, even if you’re a tenant, because someone has broken the shop front glazing then for up to five days that’s covered (except for the first day). But we’ve introduced that cover as well specifically for Hair and Beauty. It is all very much about creating the right impression so if there’s glass all over the floor it makes sense you’ll want to rebook those appointments for another day; there is always potential there for some sort of lost income.
Within MORE TH>N BUSINESS we offer a shop product and within that shop product you can buy insurance for restaurants, fish and chip shops, your greengrocer, your newsagent and up until recently the hair and beauty guys were, sort of, bundled as shopkeepers but we know they’re not shopkeepers. We’re saying to these guys we’re here we’ve developed something for you please give us a call. For more about insuring your Hair and Beauty business go to www.morethanbusiness.com or call 0800 294 8501. Calls may be recorded or monitored for your protection.
I’m Jane Markham and this is a Podcats production for MORE TH>N BUSINESS.
As a tenant what about all you’ve invested in the look of your salon? Toby Langford – MORE TH>N BUSINESS: If you turned the premises upside down whatever fell out would probably be your contents and whatever doesn’t fall out - that’s yours - is probably what we’d call tenants improvements. It’s amazing the number of people who forget how much they’ve invested in that. Jane Markham - Podcats: Contents insurance alone wouldn’t cover it. Insurance underwriter Toby Langford: Toby: It might be very easy for people to think that the only risks that you get with Hair and Beauty are the health and safety risks, and there’s no question that those risks are there, but there are also other things that you probably want to be thinking about. When we look at the claims we get through we see thefts and we also see examples of malicious damage. How much is it going to cost if someone grafittis the outside of your premise? You’ll need to pay somebody to get that cleaned up.
When you come on to the area of theft I certainly know that when I was surveying in a particular area I went to a salon where they’d had a theft and a number of other salons in the area had also had thefts. The police were telling them that it was almost as if someone somewhere was setting up a salon and these things were being stolen to order. Jane: And it’s not just the hardware. Toby: We noticed that a lot of Hair and Beauty Salons are now retailing some quite expensive hair products as well as having some pretty expensive equipment - so it’s another area to think about.
One of the other things that has come to our attention with Hair and Beauty is that in a lot of cases these people are tenants, and when you think about the salons you’ve been in, certainly the ones I’ve been in, they’re quite well decorated. They’ve got the laminate floors, they’ve got nicely tiled walls and whatever and actually they’ve gone into premises that they don’t own and they’ve spent a lot of their own money to make those premises look good, so one of the things you need to be thinking about when you phone an insurance company for your cover is, how much would it cost me to replace all that if there was a fire? So you are almost thinking as if part of the building is your own. Jane: In ‘insurance speak’ they are known as tenants improvements. Toby: The way that we tend to define it in the insurance industry is if you turned the premises upside down, whatever fell out would probably be your contents and whatever doesn’t fall out - that’s yours - is probably what we’d term tenants improvements. It’s amazing the number of people who forget how much they’ve invested in that side of their business and when it comes to a claim of course if you’ve underestimated how much something is worth then, in the event of claim, the amount of claim payment is reduced proportionally. The classic example is if your tenants improvements are worth £20,000 and you’ve only insured them for £10,000 then the most you are going get paid out is £10,000 and even if you have a small claim we’re only going to pay out half the amount of the loss. So, that’s one to think about.
We did do quite a lot of research and we asked customers for their views. One of them was - why they can’t insure for interruption arising from damage to the shop front? I think this comes back to the idea that a lot of people are tenants in the premises. They are not actually insuring the building so it’s quite possible that there could be damage to the shop front and it’s not up to them to get it sorted out. If it was they’d get it sorted right there and then but actually they are tenants and they are reliant on their landlord. That’s one of the areas we’ve been thinking about. The other thing is that they’ve got a lot of visitors - a lot of guests - on the premises with their own personal effects.
One of the other areas is the treatments that they do. One of the areas we’ve focussed in on is hair treatments. Now it’s fairly obvious if you’re a hair salon you’re going to do hair treatments so we think that it’s only fair that if you get our basic cover there’s already cover in there for hair treatments - which is not always the case. Jane: Once upon a time you didn’t admit that you’d had your hair dyed. But nowadays having a hair colour is just the norm and there are lots of new hair and beauty treatments Toby: We get a lot of enquires from hairdressing salons, and the hair and beauty industry generally, and we found that our product was very competitive for these guys so we thought, why not do a bit of research and really understand their needs and develop something specific. Jane: When you started this research you had shoulder length hair and then at each salon you had a little more off and a little more... Toby: I’ve had my number zero for a number of years! Jane: I beg your pardon – number zero! Toby: (laughs) But yes it’s amazing how many treatments there are out there and I did make a note of some of the ones we’ve got on our list (and this is not exhaustive by the way) for example acupressure, micro current treatment, nail extensions, sugaring, tanning sprays, massage, all of these things, as an insurance company, we’ve had to go out there and learn about all this stuff so that we can offer a product that meets the needs of the hair and beauty industry. Jane: It was a tough job - but somebody had to do it.... Toby: We also recognised that water is important. It gets a lot of usage in a hair salon so we’ve increased loss of metered water cover to £5000 for our salons, and we’ve increased personal effects cover to £750, as well as introducing cover so that if your business is interrupted, even if you’re a tenant, because someone has broken the shop front glazing then for up to five days that’s covered (except for the first day). But we’ve introduced that cover as well specifically for Hair and Beauty. It is all very much about creating the right impression so if there’s glass all over the floor it makes sense you’ll want to rebook those appointments for another day; there is always potential there for some sort of lost income.
Within MORE TH>N BUSINESS we offer a shop product and within that shop product you can buy insurance for restaurants, fish and chip shops, your greengrocer, your newsagent and up until recently the hair and beauty guys were, sort of, bundled as shopkeepers but we know they’re not shopkeepers. We’re saying to these guys we’re here we’ve developed something for you please give us a call. For more about insuring your Hair and Beauty business go to www.morethanbusiness.com or call 0800 294 8501. Calls may be recorded or monitored for your protection.
I’m Jane Markham and this is a Podcats production for MORE TH>N BUSINESS.
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