If you’re working in the beauty profession, you’ll face risks in the same way that all other businesses do. Risks can result in unexpected losses and beauty insurance protects businesses in the beauty profession from these unexpected losses.
There are a number of different risks that can be covered by beauty insurance to ensure that businesses in the beauty profession have complete protection.
This type of insurance covers you if your business property is accidentally damaged or stolen. It covers your business premises if you own your own salon rather than renting the premises, as well as it’s the fixtures, fittings and any other contents. This includes your business equipment as well as any stock you have.
If you intend to do any work away from your salon, you should check to see whether your beauty insurance will cover any property that you will be taking with you.
Beauty insurance policies can contain three different types of liability insurance.
The first of these is employer’s liability insurance which covers you in the event of a compensation claim being made against you by one of your employees who alleges that something you have done or failed to do has resulted in them being injured. You’re legally required to have this insurance if you have any employees, even if they are only part-time or casual employees.
The second of these is public liability insurance. which covers you if someone who isn’t an employee claims compensation from you for an injury or damage to their property.
The third of these is products liability insurance which is similar to public liability insurance. However, instead of covering claims that arise from something that you have done or something that you have failed to do, this type of liability insurance covers compensation claims that arise as a result of defects in products that you have sold or supplied.
In addition to covering the compensation awards, any legal costs that are incurred as a result of the compensation claim are covered.
It is important that you have liability insurance because it can be expensive to setter some compensation claims. A relatively minor claim could well cost thousands of pounds. A compensation claim for a serious injury can often end up costing over £250,000 to settle.
Treatment risk cover is one of the main areas where a beauty policy is different compared to a standard business insurance policy. The liability insurance in a standard business policy will not cover claims if they arise out of professional activities.
What this means is there would be cover if someone claimed that they had been injured because they had tripped over a trailing cable, but there would be no cover if someone claimed they had been injured as a result of a treatment that had been provided by you.
Treatment risk cover addresses this potential gap in cover. It’s essential that beauty professionals make sure that their insurance policy has this cover because if someone makes a claim following a treatment that has gone wrong it can be expensive. Facial scarring claims can easily reach £50,000, and they can cost even more if you need to pay for the injured person to have private cosmetic surgery.
Other types of insurance
As well as property and liability insurance, beauty professionals should also consider legal expenses insurance. If you become involved in legal action, this covers your legal costs. A variety of different types of legal action are covered.
Another type of insurance that you should consider is personal accident insurance, which covers your income if an injury or an illness means that you’re unable to work. A weekly benefit is payable if you are temporary off work and a lump sum is payable if you will be off work permanently.