Self-employed people, such as mobile beauty therapists, need to make sure that they are protected via business insurance. However, beauticians face unique risks so the insurance that they need is slightly different to a standard business insurance policy.
What are the risks that beauticians face?
Beauticians face similar risks to the risks that all other people face. These risks include:
- Accidental damage to their property
- Loss of their property as a result of theft
- Damage to or theft of their vehicles
- Being held liable for injuries to third parties
- Being held liable for injuries to third parties as a result of a treatment that has been carried out
- Being held liable for damage to a third party’s property
- Being held liable for someone who has suffered a purely economic loss.
There are also risks that are business specific such as the risks of:
- Injuring an employee
- Losing income due to you being unable to work because you’ve been injured or because you’re suffering from an illness
- Incurring legal costs because you have become involved in legal action such as contractual disputes or criminal charges being brought against you
What insurance is available to protect beauticians against such risks?
Because the beauty profession is such a specialised field, a specialist beauty insurance policy is needed to make sure you’re completely covered against the risks that you face.
Accidentally damaging your business property or having that property stolen is as easy to insure as it is to insure your home contents. Good beautician’s insurance policies should include business contents insurance cover.
The employer’s liability insurance section in a beautician’s insurance policy covers any compensation claims that are made against you by your employees. You’re legally required to have this type of insurance if you employ anyone and there are heavy penalties for anyone who fails to comply.
The public liability section is similar to the employer’s liability section except that it covers compensation claims made by members of the public who have been injured or had their property damaged. This section will usually include products liability insurance so that you’re covered if a compensation claim is made against you as a result of defects in any products that you sell or supply.
Check that your public liability insurance section includes a financial loss cover extension. Often only claims for injuries or property damage are covered. A financial loss extension will mean you are also covered for compensation claims involving purely economic losses.
If you’re ill or you’ve been injured you won’t be able to work and this means you won’t be able to earn. You can protect yourself against this risk and ensure you can cover your outgoings via personal accident insurance. This type of insurance pays a weekly benefit until you can return to work. If you’ll be unable to return to work, a lump sum is payable instead.
You can also get legal expenses insurance to protect yourself against unexpected legal bills, if you find yourself involved in legal action.
What else does a beautician’s insurance policy cover?
No matter how well trained you are and how much care you take, there is a risk that one of the beauty treatments that you provide could go wrong. Sometimes treatments can cause reactions or injuries. Those treatments can also cause economic losses. If that happened a compensation claim could be made against you.
This type of compensation claim would not covered by a standard business insurance policy because providing beauty treatments is classed as a professional service and a standard policy will exclude claims that arise as a result of the delivery of a professional service. A specialist beautician’s insurance policy should include a treatment risk cover extension to cover this sort of claim.