There are a number of different types of insurance that self-employed professionals like hairdressers and beauticians need.
They need insurance to cover themselves if their property is accidentally damaged or stolen. They also need insurance to cover themselves if a compensation claim is made against them.
These types of insurance are similar to the types of insurance that you get in your household insurance policy so most people understand them. But there are other types of insurance that self-employed professionals need.
One problem with self-employment is the fact that you don’t get sick pay if you’re unable to work in the same way that you do if you’re employed. This means that unless you have savings, you can’t cover your monthly outgoings such as your rent or mortgage payments and your other bills.
Personal accident and sickness insurance covers you if you find yourself unable to work because you’ve been injured or you’re ill. It gives you peace of mind while you recover because you know that you don’t have to worry about how your bills will be paid.
This type of insurance covers you by paying a weekly benefit while you are unable to work. If you won’t be able to return to work, a lump sum is payable instead. A lump sum is also payable if you die or in the event of certain specified incidents such as the loss of an eye or the loss of a limb.
This is an important cover extension for anyone in the health and beauty sector.
Most people know that they need liability insurance. This covers you if someone makes a compensation claim against you. As well as covering any compensation amount awarded it also covers any other costs and expenses such the legal costs. Your liability insurer will also handle the claim on your behalf so you won’t have to deal with any legal issues.
But the problem with liability insurance is that it doesn’t cover compensation claims arising out of professional activities and this means that without a treatment risk cover extension or malpractice cover, many of the compensation claims that could be made against someone who was a self-employed health or beauty practitioner would not be covered.
If you find yourself involved in legal action it can be expensive as legal costs can quickly mount up. It can also be difficult to deal with legal action as it often involves complex legal arguments.
You can protect yourself against this sort of scenario by making sure that you have legal expenses insurance. This covers you against a range of different types of legal action including:
- Contractual disputes
- Disputes with your customers or neighbours
- Criminal charges
- Employment tribunals
- Tax/VAT inspections
As well as covering your legal costs, your legal expenses insurer will also help you deal with the legal action to ensure the best possible outcome.
It’s important to remember that if even if you have household insurance the contents section of the policy probably won’t cover your business property if it gets accidentally damaged or is stolen, and the personal liability section of the policy probably won’t cover you if a compensation claim is made against you as a result of business activities.
You need to make sure you’re properly insured via a business insurance policy if you are running your own business. Relying on your household insurance to cover you could mean that you are uninsured in the event of a loss.