Beauty industry insurance is essential as the industry could otherwise leave you vulnerable to a claim due to its very nature. Damage to your premises or equipment could be disastrous for your business as without them you simply wouldn’t be able to do your job.
A client compensation claim could destroy your reputation as well as causing financial difficulty, as you would have to find the money to cover legal costs.
Part of being creative within your industry is to try out new things, new products and new equipment for the latest styles, looks and treatments and that always comes with risk. Make sure you are sufficiently covered against any potential risk with the right beauty insurance cover.
What does beauty insurance include?
You can tailor your beauty insurance package to suit your own individual business needs, but as standard you should include:
1. Professional indemnity insurance
If a client sues you for making a mistake, professional indemnity insurance provides you with cover for any compensation and legal costs.
You can pay out substantial compensation for injury, for example if someone trips over a hairdryer cable in your salon, or you use a chemical that causes skin damage. You can also end up paying for loss of a client’s wage – for example if a hair disaster causes a professional model to have to get it fixed before they can work.
2. Employer’s liability insurance
Employer’s liability insurance is a legal must if you have any staff members. An employee can claim compensation which you will have to pay if they get injured at work, or your employment causes them to become ill.
3. Public liability insurance
Public liability cover under your beauty industry insurance covers any compensation and legal fees that you might suddenly receive as a result of injury to someone in your salon, from home or as a mobile therapist.
Even if you carry out patch tests on new clients, a client could have an allergic reaction to a treatment or trip over a hairdryer cable or trolley which they could then claim against you for.
4. Product liability insurance
Beauty industry insurance covers companies who manufacture or distribute beauty products. A claim arising from an allergic reaction to a beauty product could cost you thousands of pounds in compensation and legal expenses without product liability cover.
5. Office insurance
Office insurance covers your salon and contents against against theft or damage from a fire or flood.
6. Business contents insurance
Business contents insurance is a must if you have furniture, phones and other equipment for your beauty business. It might also include:
- Cover for personal items belonging to employees or visitors
- Protection for promotional merchandise
- Replacement of broken glass
If you work from home, check your home insurance policy carefully as it may exclude work equipment and all the other tools essential to your beauty trade.