Beauty Business Insurance in the UK: What does it cover?

Dean Laming ACIIBy Dean Laming on April 23rd, 2018

If you’re running a beauty business in the UK, you’ll need insurance to cover your business against unexpected losses.

Normally, beauty business insurance is bought as a package containing a number of different types of insurance covering different types of risk.

Property insurance

This covers your business property if it is accidentally damaged or stolen. If you’re a mobile operator, you should check whether your property is covered while it is away from your business premises.

Liability insurance

Liability insurance covers you if someone makes a compensation claim against you. There are three main types of liability insurance.

Employer’s liability insurance covers compensation claims made by your employees. It’s legally required if you employ anyone.

Public liability insurance covers compensation claims made by other people. It’s not a legal requirement but as compensation claims can be expensive to settle and often involve complex legal arguments, it wouldn’t be sensible to operate without it.

Products liability insurance is usually included with public liability insurance. Rather than covering compensation claims arising from things that you have done or failed to do, it covers compensation claims arising from defects in any products that you have sold or supplied. Again, this type of insurance is not a legal requirement but if you sell or supply any products it would be unwise not to have products liability insurance.

Liability insurance extensions

There are two important liability insurance extensions that beauty businesses need to have.

Financial loss cover is important because a standard public liability insurance policy does not cover compensation claims unless they involve an injury or property damage. The financial loss cover extension means that compensation claims for purely economic losses are covered.

Treatment risk cover is also important because a standard public liability insurance policy will exclude cover for compensation claims arising out of your professional activities. Without this cover extension, you could be uninsured in the event of a claim.

Other types of insurance

Although property and liability insurance are the main covers needed by a beauty business, there are two other types of insurance that a beauty business should consider.

The first is personal accident and sickness insurance. This covers your income if you’re unable to earn because you have been injured or are ill.

The other is legal expenses insurance, which protects you if you become involved in legal action.

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