Freelance hairdressers know that they need insurance, but often they don’t know what insurance that they need. Hairdresser’s insurance is not the same as your own personal insurance policies.
A freelance hairdresser will need insurance to cover their business property against losses due to accidental damage or theft. They will also need liability insurance to protect them if a compensation claim is made against them. They will need insurance to protect their income so that they can pay their bills if they’re unable to work due to an injury. They will also need insurance to protect them against unexpected legal bills if they find that themselves involved in legal action.
You might not think that your business property is worth a great deal, but when you start to add it up, the value of that property can be surprising. Remember that your business property will include the computer and printer you use for your business admin, as well as the phone that you use to take bookings and communicate with your clients.
It’s important that you make sure all of this property is adequately insured because you won’t be able to trade without it.
Liability insurance covers you if a compensation claim is made against you by someone who claims you’re responsible for them being injured or their property being damaged.
Employer’s liability insurance covers you if the claim against you is made by one of your employees. This type of insurance is a legal requirement if you employ anyone, even if you’re only employing them on a temporary or casual basis.
Public liability insurance covers you if the claim against you is made by a member of the public. Although public liability insurance is not a legal requirement, you would be unwise to trade without it because compensation claims for serious injuries can often end up being settled for large amounts of money. Settlements of £250,000 or more are not uncommon.
Products liability insurance covers you if the compensation claim arises as a result of a defect in a product that you have sold or supplied.
Specific hairdressing insurance covers
A standard liability insurance policy will contain a number of exclusions that could cause problems for freelance hairdressers in the event of a claim.
First, standard liability insurance policies only cover compensation claims involving injuries or property damage. They do not cover compensation claims for purely economic losses. A liability insurance policy for a freelance hairdresser should include a financial loss cover extension to address this issue.
Second, standard liability insurance policies exclude compensation claims arising from professional activities. This means that many compensation claims made against a hairdresser would be uninsured. For this reason, it’s important to make sure that your insurance includes a treatment risk cover extension.
Whenever you find yourself involved in legal action, the legal costs can end up being expensive.
Your liability insurer will provide a legal defence for you if any compensation claims are made against you. That insurance will also cover any legal costs incurred in the defence of such claims.
For other types of legal action, such as contractual disputes, employment tribunals or tax and VAT investigations, legal expenses insurance is available. This covers the legal costs involved in these types of legal action.
If you’re unable to work because you’ve been injured, you’ll be unable to earn and will struggle to cover your monthly outgoings. Unlike a conventional employee, you won’t get sick pay while you are off work.
Personal accident insurance covers your income if you’re unable to work. It pays a weekly benefit if your injury is temporary, or a lump sum if you’ll be unable to work on a permanent basis.