Public liability insurance covers make-up artists if someone makes a compensation claim against them because they feel something has been done or has not been done and that has led to them being injured or has led to their property being damaged.
As well as covering any compensation that is awarded, any associated costs and expenses such as the claimant’s loss or earnings and any legal fees that are incurred are covered by make-up artist insurance.
This type of insurance isn’t a legal requirement. However, compensation claims are often expensive to settle. They can also involve complex legal arguments. Make-up artists should consider public liability insurance as an essential cover.
Minor claims such as mild cuts and bruising suffered by someone who has tripped or fallen can easily cost more than £1,000. Even though the compensation award would be lower than that figure, once the legal fees and other associated costs have been factored in, the eventual settlement figure would be higher.
More serious injuries such as broken wrists might cost something closer to £20,000 once the legal fees and any other costs are taken into account. If the claimant was unable to work due to their injury their lost wages could mean this figure was even higher.
Serious injuries such as spinal injuries often cost in excess of £250,000. In addition to the compensation award and the other costs and expenses, when a claim involves a serious injury, it can also include the cost to adapt the claimant’s home to address their disability.
Normally compensation claims are settled without involving the courts. However, some claims involve complex legal arguments. Public liability insurers have legally-trained teams to deal with compensation claims. They will handle any claims on your behalf so you wouldn’t need to worry about dealing with solicitors.
They will also know what the compensation claim is worth because they will know what similar previous claims have been settled for. This means that if you’re legally liable to pay compensation, the correct amount of compensation will be paid.
The policy excess
A public liability insurance policy has a policy excess like most insurance policies do. The policy excess is the amount that has to be paid by the policyholder if there is a claim.
It important to note that even if the claim is denied and no compensation is paid to the claimant, you may still need to pay the policy excess. This is because the insurer may have incurred legal costs and other expenses to defend the claim made against you.
Important cover extensions
There are two cover extensions that all make-up artists need to make sure are included in their public liability insurance:
- The treatment risk extension
- The financial loss extension
The treatment risk extension is required because standard public liability insurance does not cover claims that arise out of professional activities. This means many claims would not be covered without this policy extension. As an example, if someone claimed that they had suffered an allergic reaction as a result of make-up, there would be no cover, as the application of make-up is a professional activity.
The treatment risk extension covers this type of claim. Given that facial scarring claims can cost £50,000 and potentially more if you’re required to pay for cosmetic surgery for the claimant, it is important that your public liability insurance includes this extension.
The other problem is that a standard public liability insurance policy will not cover a compensation claim for a purely economic loss. Only claims involving injuries or property damage are covered.
If a model wasn’t injured but lost earnings due to a problem with their make-up, that would be a purely economic loss. Similarly, a photographer or film studio that was using the model could have incurred additional hiring costs or other expenses.