Insurance is an essential component of any business. Kyle Eaton, money.co.uk business insurance expert, said that for businesses in the beauty industry, having the right insurance coverage helps to protect against potential liabilities and risks associated with their services. He outlined the eight key types of policies you should consider.
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1. Public Liability Insurance
Eaton said, “This covers claims by third parties for bodily injury or property damage caused by your business activities. For instance, if a customer slips and falls in a salon or if a salon damages a customer's personal property, this insurance can cover legal fees and any resulting damages."
2. Professional Indemnity Insurance
“As well as general liability insurance, professional indemnity covers claims related to the services provided," Eaton said. "For example, if a client suffers skin irritation from a treatment or questions your staff’s competence. It can cover legal defense costs, settlements and judgments.
3. Product Liability Insurance
Eaton said covers claims arising from the products sold or used on clients, such as allergic reactions to a skin care product sold by a skin care clinic.
4. Property Insurance
“Property insurance covers damage to the business's physical assets, such as equipment, furniture, and the building (if owned by the company), due to events like fire, theft or vandalism," Eaton said.
5. Employers' Liability Insurance
“This one might not apply to all beauty businesses, as lots are sole traders without employees," Eaton said. "If you have employees, though, this covers medical expenses, rehabilitation costs and lost wages for injured or ill employees. It is legally required in the UK if you employ staff. If you’re self-employed, personal accident insurance may be beneficial to cover personal injuries."
6. Business Interruption Insurance
Business interruption insurance covers lost income and operating expenses if the business must temporarily close due to a covered disaster, such as a fire or natural disaster, according to Eaton.
7. Cyber Liability Insurance
Eaton said cyber liability insurance is increasingly crucial as salons allow bookings online, this covers costs associated with data breaches or cyber-attacks. This includes notification costs, credit monitoring and legal fees.
8. Commercial Vehicle Insurance
“If you operate a mobile makeup artist service, you’ll also need liability and physical damage cover for vehicles used by the business," Eaton said. "Note that some insurers may also offer specialized policies covering specific risks associated with beauty treatments. It's crucial for business owners in the beauty industry to assess their specific risks and consult with insurance professionals to ensure they have adequate protection. The right insurance policies can safeguard against significant financial losses and help ensure the business's longevity.”
