A concerning trend is emerging among small businesses in Singapore’s personal care industry — particularly hair salons, nail spas, and beauty service shops.
In an effort to cut costs, some owners are choosing not to purchase Foreign Worker Medical Insurance (FWMI) or Work Injury Compensation Act (WICA) insurance.
They argue that their work environment is “low risk,” believing accidents are unlikely, and if something does happen, they can “self-underwrite” and pay out of pocket.
But the reality paints a much riskier — and costlier — picture.
Why Some Hairdressers and Salons Are Skipping Insurance
Many owners feel:
- “Our staff don’t work with heavy equipment — what’s the worst that could happen?”
- “Insurance premiums are an unnecessary yearly burden.”
- “We’ll just pay for minor injuries ourselves.”
However, this mindset overlooks the hidden risks lurking even in seemingly safe environments like salons and beauty centers.
The Real Risks Behind the Scissors and Shampoo
Even without machinery or high-risk tools, salons still face daily hazards:
- Slips and Falls: Wet floors from hair washing or product spills are common causes of injuries.
- Chemical Exposure: Regular handling of dyes, bleach, and perms can cause burns, respiratory issues, and allergic reactions.
- Repetitive Strain Injuries: Hairdressers are prone to musculoskeletal problems from repetitive hand and arm motions.
- Fire Hazards: Electrical tools like hairdryers and straighteners can cause burns or accidents if faulty.
The workplace might look safe, but the potential liabilities are very real — and very expensive.
Real-Life Example: Beauty Treatment Gone Wrong
In 2018, a case highlighted the risks:
A client suffered severe skin damage during a botched beauty treatment, sparking a lawsuit against the salon.
The business faced not just medical compensation, but also legal costs and reputational damage. (AccidentLawyerSingapore.org)
While this involved a client, the same level of exposure applies if a foreign worker suffers an injury. Without FWMI or WICA coverage, employers could be personally liable for tens of thousands of dollars in medical bills and damages.
Legal and Financial Consequences of Skipping FWMI/WICA
Skipping insurance is not just risky — it’s illegal.
Under Singapore law:
- Employers must provide FWMI for all Work Permit and S Pass holders.
- Employers are responsible for work injury compensation under WICA — whether or not the business owner believes the work is risky.
Non-compliance could result in:
- Heavy fines
- Criminal charges
- Work pass suspensions
- Company closure
And no — saying “the job is low risk” is not a valid legal excuse.
Insurance Is Business Protection, Not a Luxury
Small beauty businesses and hair salons need to recognize that accidents are unpredictable — even in environments that seem safe. This is only 1 example, there are many other small business owners who are having such mentality – in fact too many to list here.
The cost of FWMI and WICA insurance is minimal compared to the potentially devastating consequences of being uninsured.
Don’t gamble your entire business on the hope that nothing bad will happen.
Protect your workers, your reputation, and your future.
Contact Us for a non-obligatory quote.