Like every business, beauticians are exposed to risks that can result in unexpected losses. Some of these unexpected losses can result in serious headaches for anyone running a beauty business.
Whether you’re a mobile beautician or you operate your business in a beauty salon, you can protect yourself via beautician insurance. There are a number of insurance covers that are available to beauticians.
You have two choices when deciding how to by insurance to cover your business. Standard business insurance will cover some of the risks you face, although a bespoke beautician insurance package will provide wider cover.
Bespoke beautician insurance packages give you the same cover that you would get from standard business insurance packages, but they include some important cover extensions that you need to make sure that you’re not uninsured in the event of a claim.
Standard business insurance packages
Standard business insurance packages will cover many risks and they’re ideal for many businesses. They include property insurance which covers you against accidental damage or theft of your business property. They also include liability insurance which covers you if someone makes a compensation claim against you.
Liability insurance comes in three different forms:
- Employer’s liability insurance which deals with any compensation claims that your employees make against you
- Public liability insurance which deals with any compensation claims that other people make against you
- Products liability insurance which deals with any compensation claims that arise as a result of a defective product you’ve sold or supplied
Although this covers you for many of the risks you face, standard business insurance packages don’t cover all of the risks that beauticians face.
How is beautician insurance better?
Standard business insurance packages aren’t the perfect solution for a beautician because there are gaps in the cover.
The main extension in beautician insurance is called treatment risk cover. Without this, there is a potential for substantial claims to be uninsured.
Legal expenses insurance and personal accident and sickness insurance are also important to have. These types of insurance are often overlooked but their importance can become apparent once you need to make a claim.
Treatment risk cover
This is the major issue that means that standard business insurance packages aren’t suitable for beauticians.
Standard public liability insurance cover does not cover any compensation claims that arise from professional activities. Beauticians are professionals so many of the compensation claims that might be made against them would be uninsured.
If a compensation claim was made against you because someone alleged that they had suffered facial scarring as a result of a treatment, that could result in a compensation award of £50,000. Once you include the legal fees and other associated expenses that figure could be even higher. The court could also decide that you should be responsible for the cost of any private cosmetic surgery that the claimant required as well.
Treatment risk cover protects you against such claims, which is why it is so important that you have it.
Legal expenses insurance
Many people don’t think about legal expenses insurance, but if you become involved in legal action the fees and costs can quickly mount up so it’s important that you’re covered in case you find yourself in this situation.
Legal expenses insurance covers a wide range of different types of legal action, including:
- Clients or neighbour disputes
- Employment tribunals
- Criminal charges
- Tax/VAT investigations
Personal accident insurance
We remember to insure our business property and we remember to make sure we’re covered in case a compensation claim is made against us, but often we overlook making sure that we cover ourselves.
Personal accident insurance is a way to protect yourself. It covers your income if you’re unable to work because you’ve been injured or you’re ill. A weekly benefit is payable while you’re off work. If you won’t be able to return to work, a lump sum is payable instead.