As you tick off your end-of-financial-year to-dos, don’t forget to review your business insurance. Just like keeping scissors and razors sharp, checking your insurance is a small task that can make a big difference. BizCover looks at the three key things to check before the end of financial year.

Is your cover still right for your business?

Your salon has probably changed a little in the past 12 months. You may have expanded your service offerings and begun to offer new products and treatments. Perhaps you’ve hired new apprentices or casual stylists to meet growing demand. You might have even moved to a new, larger space or opened a second location.

Whatever changes may have occurred could impact your insurance needs. That’s why the end of financial year is a great time to review your insurance policies to make sure they still reflect your business needs.

Ask yourself the following questions:

• Do my current policies cover all the services I offer?
• Have I increased my staffing levels or changed the way I employ people?
• Has my risk exposure changed now that I work in a different space or location?

If the answer is “yes” to any of the above questions, then it may mean that your insurance needs have changed.

Have you upgraded tools or equipment?

EOFY is typically a time when many businesses make big purchases. As a hairdresser, this could mean investing in new styling chairs, tools, wash basins, furniture, decor or software.

If the value of your contents and stock has increased, then you may wish to review and update your insurance policies to ensure you have adequate cover. Otherwise, you may run the risk of being underinsured.

Underinsurance occurs when an insurance policy does not cover the full value of potential liabilities or the cost of replacing your assets. For example, if your contents are insured for $20,000, but is actually worth $30,000, then you are underinsured.

Has your booking system gone online?

If you run any aspect of your business online, from taking and managing appointments to accepting online payments and communicating with suppliers via email, then you may wish to consider Cyber Liability insurance.

It’s not uncommon for hairdressers to move some part of their business online in order to help streamline operations. But while these tools can help salons run more efficiently, they can also open the door to potential cyber risks. Hair salons can provide a target for cyber criminals as the client data they hold (such as names e-mail addresses, phone numbers, financial information and more) can be a highly valuable commodity.

EOFY is the perfect time to think beyond your physical tools and consider how you’re protecting your digital ones, too.

Are you ready for a claim?

While you’re preparing for EOFY organising receipts, invoices and other financial records, take a moment to ensure your insurance documents are up to date.

If you were to experience a claim – whether from a client, a supplier, a member of the public, an employee or anyone else – it’s good to have that peace of mind knowing you have everything in order.

This includes:

• Checking your policy details and expiry dates. Make sure your policies have not lapsed.
• Carefully storing your receipts, invoices and asset files somewhere safe in case they’re needed for a claim.
• Knowing what documents you need on hand if you need to make a claim, or someone makes a claim against you.

Organising your records now means that you’re not caught off guard if the unexpected does happen. Plus, it could make tax time go a little smoother if you are able to claim insurance premiums as a tax deduction.

BizCover makes insurance for hairdressers easy

The end of financial year is often a busy time when small business owners find themselves run off their feet, trying to get everything done before June 30^th.

BizCover understands the needs of salon owners and what it means to run a business and has made it easy to quote, review and purchase insurance for hairdressers online.

Visit www.bizcover.com.au to compare quotes from selected leading Australian insurers, or call on 1300 805 821.