Many mobile hairdressers wonder whether they actually need to insure their business. They’re usually a small business with very little in the way of business property, so it’s difficult to see what could go wrong.
However, mobile hairdressers face the same risks that large businesses face, but unlike larger businesses, as a smaller business, mobile hairdressers would be less likely to be able to absorb unexpected losses, so insurance is even more vital for them.
The two main forms of insurance that a mobile hairdresser needs are liability insurance and personal accident and sickness insurance, although there are other types of insurance that a mobile hairdresser should also consider.
Liability insurance is vital for mobile hairdressers insurance. It covers you if a compensation claim is made against you. A compensation award for a serious injury could be in excess of £250,000 and, in addition to the compensation award, you would also have to pay any associated costs and expenses as well as the claimant’s loss of earnings.
Any legal fees are also covered and your liability insurance will handle the claim on your behalf. This means you do not need to deal with solicitors or complicated legal matters.
covers compensation claims made against you by your employees and it is a legal requirement if you employ anyone. Public liability insurance is similar but covers compensation claims by other people. Products liability insurance covers compensation claims that arise as a result of a defect in a product that you have sold or supplied rather than something you have done or failed to do.
Standard liability insurance would leave a mobile hairdresser with gaps in their cover, so you should make sure your insurance has a treatment risk extension and a financial loss extension.
Treatment risk extension
A standard public liability insurance policy does not cover compensation claims arising out of professional activities so claims arising out of your hairdressing would be uninsured. The treatment risk extension addresses this gap in cover.
Financial loss extension
Standard public and products liability insurance policies only cover compensation claims involving an injury or property damage. The financial loss extension adds in cover for compensation claims where the loss is purely economic so you aren’t uninsured in the event of such a claim.
Personal accident & sickness insurance
If you are unable to work because you have been injured or are suffering from an illness, you will be unable to earn, although your monthly bills will still need to be paid.
Personal accident & sickness insurance protects your income by paying a weekly benefit if you are temporarily incapacitation. If your incapacitation will be permanent, a lump sum is payable instead. A lump sum is also payable in the event of certain injuries, such as the loss of a limb or an eye, or if you die.
Other types of insurance
Although liability insurance and personal accident and sickness insurance are the main types of insurance that mobile hairdressers need, there are other risks that a mobile hairdresser faces and you should consider protecting yourself against those risks via other types of insurance.
Your business equipment or stock could be accidentally damaged or stolen, for instance. Although most mobile hairdressers don’t think their business property is worth a great deal, but it can be an eye-opener when you calculate the total value. Bear in mind even if you have household insurance that might cover your business property.
You should also consider getting insurance against legal costs in case you become involved in legal action. The legal bills can be expensive if criminal charges are brought against you, if you become involved in a contractual dispute or a dispute with a neighbour, if you are called to an employment tribunal or if you become subject to a tax/VAT inspection. Legal expenses insurance covers these legal bills.