If you want to run a hairdressing business, you’ll need insurance to protect your business because like all businesses, you’ll face risks. You can minimise those risks, but you can’t eliminate them.
The main types of insurance that you’ll need are:
- Property insurance
- Liability insurance
- Personal accident and sickness insurance
- Legal expenses insurance
This covers your business property in case it’s accidentally damaged or stolen.
As a self-employed hairdresser, you might decide that you don’t need property insurance because you don’t have all that much in the way of business property, but it’s worth working out the total value because it can be surprising how quickly the value can mount up, particularly when you include the value of the computer equipment you use to run your business.
If you’re a mobile operator you should check whether there are any conditions that apply when your business property is taken away from your business premises.
This type of insurance covers you if someone makes a compensation claim against you. There are a number of different types of liability insurance.
Employer’s liability insurance covers claims made by your employees. It is a legal requirement if you employ anyone.
Public liability insurance covers claims made by other people. It is not a legal requirement, but as some compensation claims can cost more than £250,000 to settle, it’s not something you should consider as optional.
You should ensure that your public liability insurance contains a financial loss extension and a treatment risk cover extension.
Products liability insurance covers claims that arise due to defects in any products that you have sold or supplied. Again, it’s not a legal requirement but due to the potential cost of a claim, it’s something that you need. It’s usually included with public liability insurance.
Personal accident & sickness insurance
This covers you if you’re unable to work because you’re ill or have been injured. A weekly benefit is payable if you’re off work on a temporary basis and a lump sum is payable if you won’t be able to return to work.
Legal expenses insurance
This covers your legal costs if you become involved in legal action. In addition, your legal expenses insurer will help you deal with the legal action to ensure a satisfactory outcome.