Hair & Beauty Insurance: Explained

If you’re a hairdresser or beautician, you’ve probably often considered starting up your own business, whether it’s a salon or working on a mobile basis. Many beauty and hairdressing college graduates also plan to start up their own business, once qualified and you will need hair and beauty insurance.

The enthusiasm you have for your new business scheme should be tempered with realism, however, because there are several very real administration issues that will need to be sorted out for every startup business. Running your own beautician service or hairdressing salon is not just about meeting and pampering the clients walking through your door. Hairdressers or beauticians planning to start up on their own will need to consider all the business administration requirements essential for setting up in business, prior to going it alone.

One major requirement for any new beauty salon or hair salon is business insurance and you will need to shop around to source the best deals with the right amount of cover. It’s important that you have the right insurance in place to protect your interests and your business in the event of any mishap.

What insurance does a mobile hairdresser or beautician require?

Some business insurances are a legal requirement. These include employer’s liability insurance, which protects your business against any claims employees may make. So, if you employ staff at all, this insurance is essential.

You also need to have insurance in place to protect yourself against unexpected losses. For example, if you cause damage or harm to a client when applying treatments or cutting hair, your client may well seek compensation. Claims for compensation can be huge, which could cause your business to fail at the outset. Putting insurance in place to cover these types of eventuality makes practical business sense. You should make sure this insurance has a treatment risk extension, to ensure you’re covered for any treatments provided. A financial loss extension is also recommended, as this covers you for any claims for economic losses, too.

Also, if you travel to and from customers’ homes or business locations you’ll need motor insurance for business purposes. You may only be covered for social, domestic and pleasure use of your vehicle on your normal insurance, so it’s important to arrange an upgrade.

So, what insurances will I need?

Ideally, you should look around insurers that specialise in your field of work, as the hair and beauty sector offers specific insurance risks.

The principal insurance you’ll need is public and products liability, which will cover you in the event of any claims for damages which are based on your activities or if products used have caused damage to the client, their clothing, or their personal belongings.

Jot down the total sum of business assets you own, as you could be surprised at just how much capital you have tied up in your business. So, taking out insurance to protect your property will also be a valuable decision.

Working for yourself does offer huge benefits, but one thing not covered is sickness pay if you can’t work. Check around for personal accident and sickness insurance premiums to source the best deals that will pay you a regular income in the event you can’t work due to injury or sickness. Some policies will also pay out lump sum benefits if you have to give up your beauty or hair business due to long-term health issues.

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Darragh Timlin

With over 25 years’ experience, Darragh is an expert in all things insurance. Starting his career in commercial property underwriting, Darragh has worked for a number of global insurers and is now Managing Director of Salon Saver, part of the wider Henry Seymour Group.

All articles by Darragh Timlin