All businesses need insurance to protect them against unexpected losses. Nail technicians are no different. Even if they are a sole trader or a mobile operator, a nail technician faces risks which need to be covered.
In many ways, nail technician insurance is generally similar to the insurance that most other businesses need. However, there are some differences.
Property insurance
A nail technician will have equipment, including the office equipment they use to manage the admin side of their business, and stock. This should be covered against losses by accidental damage or theft because without these items you would be unable to trade.
It can be a surprise just how much this business property is worth when the values of all of the items are totalled. It’s important to insure for the full value because if you’re underinsured in the event of a claim, the claim payment will be reduced.
If you’re a mobile operator, it’s also important to ensure that your business property is covered when it’s away from your business premises because standard property insurance often excludes cover for property that has been taken off-site.
Liability insurance
Liability insurance covers you if a compensation claim is made against you by someone who claims that you have done something, or failed to do something, and they have been injured or their property has been damaged as a result. It not only covers any compensation awarded by also covers any associated expenses and if applicable, the claimant’s loss of wages.
Your liability insurer will defend the compensation claim on your behalf. This is important because compensation claims often involve complex legal arguments. Having a legally trained team that specialises in compensation claims working for you can make a big difference. The legal costs are all covered by the insurance.
There are three main types of liability insurance.
Employer’s liability insurance covers compensation claims made against you by your employees. It’s a legal requirement if you employ anyone, even if you are only employing people on a temporary or casual basis.
Public liability insurance is similar but covers compensation claims made against you by people who aren’t your employees, such as members of the public or your clients. It’s not a legal requirement but as it’s not uncommon for compensation claims to result in six-figure settlements, it’s unwise to consider trading without this type of insurance.
Products liability insurance is also similar, but rather than covering compensation claims arising from things you have done or failed to do, if covers compensation claims arising from defects in any products that you have sold or supplied.
Standard liability insurance policies only cover compensation claims involving an injury or property damage. It’s important that you make sure your policy contains a financial loss cover extension or you could be uninsured in the event that a claim for a purely economic loss was made against you.
Treatment risk cover
This is where insurance for a nail technician is different. A standard public liability policy will not cover claims arising out of professional activities, and so it would not cover you if you injured someone while providing nail services.
The treatment risk cover extension covers claims arising out of any services you provide, so you should make sure that your policy contains this important cover extension.
Other types of insurance
If you’re self-employed and are unable to work because you’re ill or have been injured, you will not get sick pay so you could struggle to pay your bills. You need personal accident & sickness cover to replace your lost income in this scenario, either by a weekly benefit, or by a lump sum if you’ll not be able to return to work.
Another type of insurance that you need is legal expenses insurance. This covers your legal costs if you find yourself involved in legal action.
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