Beauticians face a number of risks that can lead to unexpected losses. Nobody likes unexpected losses and some unexpected losses can cause serious headaches for business owners.
Beauticians have two choices when it comes to getting insurance to cover their business. They can buy a standard business insurance package, or they can buy a bespoke beautician insurance package.
The standard business insurance package covers many of the risks that a beautician faces. However, there are gaps in the cover that it provides for beauticians.
A bespoke beautician insurance package provides the cover that’s provided by a standard business insurance package, but also provides a number of important cover extensions that address the unique risks that beauticians face.
Standard business insurance packages
Standard business insurance packages cover a number of risks and for many businesses, they’re the perfect form of financial protection.
These insurance packages include property insurance. This covers your business property such as your premises and business equipment against accidental damage or losses due to theft.
They also include liability insurance. This covers you in case any compensation claims are made against you. There are three types of liability insurance covered:
- Employer’s liability insurance which covers compensation claims made by your employees
- Public liability insurance which covers compensation claims made by other people
- Products liability insurance which covers compensation claims arising due to a defect in a product that you have sold or supplied
The problem is that a standard business insurance package is a one-size-fits-all insurance package and so, although it provides most of the insurance cover that a business needs, there are certain risks that a beautician faces that won’t be covered.
What extra risks does beautician insurance cover?
As mentioned, although a standard business insurance package covers many of the risks that a beautician faces, it isn’t the perfect solution because there are some risks that it doesn’t cover.
The most important of these is what’s called treatment risk cover. This is a major cover gap where beauticians are concerned because it can leave substantial claims uninsured.
Beauticians insurance should also include legal expenses insurance as well as personal accident and sickness insurance. These types of cover are often overlooked with their importance only becoming apparent once the need to make a claim arises.
Treatment risk cover
This is where the cover that a standard business insurance package provides really lets beauticians down.
The public liability insurance cover in a standard business insurance package excludes cover for compensation claims arising from professional activities. And as beauticians are professionals, that means that compensation claims arising from many of the things that they do would be uninsured.
This is a serious issue. A compensation claim for facial scarring can easily result in an award of £50,000. The legal fees incurred to deal with that claim and the associated expenses will inflate that figure further, and the court could decide that you should pay for private cosmetic surgery for the claimant as well.
Being uninsured if you are faced with a claim like that could be a disaster, and that’s why it’s essential that beauticians make sure their insurance includes treatment risk cover.
This is often overlooked, but legal bills can spiral out of control and so it’s important to make sure that you’re covered in case you are involved in legal action.
Legal action covers a range of legal actions, including:
- Disputes with clients or neighbours
- Employment tribunals
- Tax/VAT investigations
- Criminal charges being brought against you
Personal accident insurance
This is another type of insurance that is overlooked because although we think about insuring our business we forget about insuring ourselves.
Personal accident insurance protects your income by paying a weekly benefit if you cannot work due to an injury. If you will not be able to work permanently, a lump sum is payable.