Running a Barbershop in Australia

Barbershops are bustling hubs of style and community.

It’s all about creating a great experience for your clients, offering sharp cuts, good vibes, and maybe even a cold drink to top it off. 

But barbershops aren’t immune to accidents.

Just like other small and medium-sized businesses, they can also face insurance claims.

In fact, the 2023 National Claims and Policy Database (NCPD) Analysis by the Australian Prudential Regulation Authority (APRA) showed that small and medium-sized businesses experience a mix of claims resulting from bodily injury, financial losses, and property damage.

As an insurance broker, we’ve seen how quickly things can go off track if you’re not prepared for the unexpected.

Be it slip-and-fall accidents or stolen clippers, you have to know what to look out for.

Let’s dive in to discover the most common insurance claims in Australian barbershops, and learn practical tips to avoid them. 

Top 5 Common Insurance Claims in Australian Barbershops

5. Theft or Damage to Equipment

Barbershops are stocked with valuable gear: your clippers, scissors, chairs, and even product inventory. 

Break-ins have become an emerging issue in Australia, leaving business owners vulnerable.

A fire or flood could also wipe out your assets, leaving you unable to operate. 

How To Avoid It:

• Install security systems, such as alarms and CCTV.
  
  
• Store high-value items in a locked safe overnight.
  
  
• Keep an updated inventory list to simplify claims.
  
  
• Get property and theft cover under a Business Insurance policy to help replace what’s lost.

4. Business Interruption from Unexpected Events

A fire, burst pipe, or storm could force your shop to close temporarily, cutting off your income. 

How To Prevent It:

• Maintain your shop’s plumbing and electrical systems to prevent issues.
  
  
• Have a backup plan, say, a temporary location, for mobile barbers.
  
  
• Review your policy to ensure adequate coverage for your expenses.

Quick Tip: Business Interruption Insurance can cover fixed costs like rent and wages during downtime.

3. Allergic Reactions to Products

Clients can suffer allergic reactions to hair dyes, shampoos, or beard oils, often due to missed patch tests.

These claims fall under Professional Indemnity Insurance, with some costing over $10,000 in medical and legal fees.

What You Can Do:

• Perform patch tests 24 to 48 hours before applying new products.
  
  
• Ask clients about their allergies during consultations and document their responses.
  
  
• Always check product labels.
  
  
• Use hypoallergenic products as much as possible.
  
  
• Review your policy exclusions to ensure coverage.

2. Property Damage to Client Belongings

Ever accidentally splashed hair dye on a client’s expensive jacket? 

Or maybe a clipper malfunction damaged their shirt. 

These incidents can lead to claims for repair or replacement costs, and can even be costly especially when high-value items are involved.

How To Steer Clear:

• Use protective capes and towels during treatments.
  
  
• Store client belongings in a safe, dry area away from workstations.
  
  
• Train staff to handle tools and products carefully near client items.
  
  
• Double-check equipment regularly to catch faults early.

1. Claims from Client Injuries

Clients can get hurt in your shop, even if you’re careful. 

A slip on a wet floor after a hair wash or a nick from a straight razor can lead to a claim for medical costs or compensation.

These are among the most frequent claims.

• Sweep hair and mop spills immediately after each client.
  
  
• Use non-slip mats near washing stations and entrances.
  
  
• Keep cords taped down or tucked away.
  
  
• Display “wet floor” signs after cleaning.

Remember: Public Liability Insurance is key here, covering legal fees and payouts if you’re found negligent.

Why Barbershops Need Insurance

You’re working up close with clients, using sharp tools, including razors and scissors, and often dealing with a steady stream of customers. 

Add in the trend of offering extras like a beer with a shave, and you’ve got a setup where small mishaps can turn into costly claims. 

For barbershops, having the right cover can make all the difference.

Tips for Choosing the Right Insurance

Ready to get covered? 

Here are some practical steps to make sure you’re set up for success:

An insurance broker can source competitive quotes and explain policy fine print. Contact us at Tank Insurance to get started.

Make sure your policy covers all your activities, such as serving drinks or using specific products.

Your business changes over time, so update your cover annually to reflect new equipment, staff, or services.

Think about your shop’s unique setup. Do you rent a chair, own a shop, or operate mobile? Each has different insurance needs.

How Can Tank Help 

Running a barbershop is rewarding, but it comes with risks that can catch you by unprepared. 

As your Sydney insurance broker, we’re here to help you find the right cover, avoid common claims, and keep your business buzzing. 

Want to chat about your insurance needs? Get in touch with us or visit our website now.

Let’s make sure your barbershop is ready for any surprises, because your business deserves a great backup plan.