Like all businesses, people in the beauty profession face risks. These risks can lead to things happening that can cost a business money. Thankfully, people in the beauty profession can cover these unexpected losses via beauty insurance.
Beauty insurance covers a number of different risks to ensure that people in the beauty profession are fully protected.
Property insurance covers your business property against accidental damage or losses due to theft. The property that can be covered includes your business premises and its fixtures, fittings and other content. It also includes your equipment and any stock you have.
If you work away from your business premises you should make sure that your beauty insurance covers any equipment and stock that you take with you.
There are three types of liability insurance that are included in a beauty insurance policy.
The first is employer’s liability insurance. This covers you if one of your employees claims compensation from you because they feel they have been injured due to something you have either done or failed to do. It is a legal requirement if you employ anyone, even if they are only employed on a casual basis.
The second is public liability insurance. This covers you if a third party, such as a member of the public or one of your clients, claims compensation from you because they feel you are responsible for them having been injured or for damage to their property.
The third is products liability insurance. This is similar to public liability insurance but rather than covering claims arising from something that you have done or failed to do, it covers you if a compensation claim is made against you that has arisen due to a defect in a product that you have sold or supplied.
As well as covering the compensation awarded against you, liability insurance also covers any legal costs incurred in dealing with the compensation claim.
Liability insurance is extremely important because compensation claims can be expensive. Even relatively minor claims can end up costing thousands of pounds and serious injuries can result in compensation claims in excess of £250,000.
Treatment risk cover is an important part of a beauty policy.
The liability insurance section of a standard business insurance policy excludes cover for claims that arise out of professional activities. This means that, although you would be covered if someone tripped over a trailing electric cable or you scalded someone by accidentally spilling hot coffee on them, you wouldn’t be covered if someone was injured due to a treatment that you had provided.
The treatment risk cover in a beauty insurance policy cover provides cover for this sort of compensation claim. It is vital that beauty professionals have this cover because claims arising from treatments that have gone wrong can be expensive. A facial scarring claim could easily reach £50,000, and would cost even more if the court decided that you had to pay for private cosmetic surgery for the injured person.
Other types of insurance
Although a lot of people realise they need property and liability insurance, there are other types of insurance that beauty professionals need, but are often overlooked.
One of these is legal expenses insurance. This covers you against unexpected legal bills if you find yourself involved in legal action. This could be due to a dispute with a client or a neighbour, a tax/VAT investigation, an employment tribunal or even criminal charges being brought against you.
Another is personal accident insurance. This type of insurance covers you if you’re unable to work because you have been injured. It pays a weekly benefit while you are off work, or a lump sum if your injury means you will permanently be unable to work.