It’s easy to wonder whether you need insurance, particularly if you’ve never had to make an insurance claim. The insurance premium can seem like an unnecessary business expense.
But even if you don’t find yourself having to make a claim, having insurance in place means you’re getting peace of mind because you know that if you have an unexpected loss, you’ll be covered.
For make-up artists, it’s also common to question whether they need makeup artist insurance because they don’t actually have a lot of property to insure. However, it‘s normally surprising when you think about exactly how much you have at risk.
So, why do make-up artists need insurance, and what covers do they need?
If you own your own salon’s premises or you’re responsible for arranging the insurance a building that you’re renting for your salon, obviously you’ll need buildings insurance covering that building. That building’s contents will also need to be insured against accidental damage or losses due to theft.
But if you are a mobile operator without a salon, you should still consider insuring your equipment and stock because the total value can be higher than you think once you total it up. Professional make-up can be expensive to replace, and your office equipment such as the computer you use for your business and the mobile phone you use to communicate with your clients can be valuable.
Making sure that you’re properly covered means that if you experience a loss, you can be back in action quickly and won’t lose bookings.
Anyone who employs someone is legally required to have employer’s liability insurance. This type of insurance covers any compensation claims that are made against you by your employees.
All make-up artists should also have public liability insurance. This is similar, but covers compensation claims made against you by third parties who allege that they have been injured or their property has been damaged because you have done something, or failed to do something that you should have done.
A make-up artist should also have products liability insurance. Rather than covering compensation claims arising from something you have done or failed to do, this type of insurance covers compensation claims arising due to a defect in a product that you’ve sold or supplied.
Liability insurance is important because compensation claims can cost a lot to settle. Many compensation awards cost £10,000 or more and some serious injuries can result in compensation awards costing in excess of £250,000, particularly when the associated costs and expenses are taken into account.
Another important feature of liability insurance is the fact that your liability insurer will handle any compensation claims for you so you don’t have to worry about complex legal arguments.
Treatment risk cover
A standard public liability insurance policy won’t cover a compensation claim which caused by a professional activity. As such, a make-up professional could find themselves uninsured if they relied on standard public liability insurance.
They should make sure that their policy includes a treatment risk cover extension to address this potential cover gap.
Financial loss cover
Standard liability insurance policies will only cover a compensation claim that involves an injury or property damage. If the compensation claims is for a purely economic loss, it won’t be covered.
You should ensure that a financial loss cover extension has been added to your public liability insurance policy to protect you if a compensation claim is made against you for a purely economic loss.
Other insurance types
As well as property and liability insurance, you should also consider is legal expenses insurance. This protects you by covering your legal costs if you become involved in legal action.
It is also worth considering personal accident and sickness insurance. This covers your income if you cannot work because you have been injured or have fallen ill.