Getting the right cover for your health and beauty business can seem complicated, but whether you’re a salon owner or a self-employed beautician it could save you money down the line.
If you’re just getting started with your business or just getting round to looking into insurance, this guide outlines why you might consider taking out insurance for your beauty business and what covers you should consider.
Whilst most insurance is optional rather than mandatory, self-employed professionals usually opt for public liability at the very least, as an accidental injury to a client could result in a significant cost.
If you have any employees, even if they are part time, it’s a legal requirement in the UK to hold employers liability insurance.
There are three main things to consider if you’re undecided about whether you should take out business insurance:
Could you afford the cost of a claim? The cost of any claim is likely to outweigh the cost of purchasing your insurance significantly
Do you have a legal obligation? Whilst not the case for every beauty business, if you have employees, even if they are part time or temporary, insurance is a legal requirement. You could face fines if you don’t have it in place
Will insurance open more opportunities? Depending on the type of work you do some clients, partners or trade associations will require adequate insurance to enter into a relationship with your business
The right mix of products for you will depend on the unique risks your business faces. Understanding what cover you need will give you peace of mind should a claim arise. It’ll also ensure you’re not paying for covers you don’t need.
A popular cover for most businesses, one of the simplest ways to think about public liability is that it covers you against claims from third parties for any claim resulting from an accident.
Third parties could be a client or a member of the public, essentially anyone who isn’t a member of staff and accidents could be as innocuous as a slip on a freshly cleaned salon floor that results in an injury, or damage to property say if a bottle of hair dye is spilt at a clients home.
It’s likely you’ve invested in plenty of equipment to get your beauty business up and running, whether that’s expensive salon furniture, specialist tools or electrical equipment that you use day in, day out.
Contents and equipment insurance covers the cost to repair or replace this equipment if it is accidentally damaged. If you travel to and from appointments your equipment will also be covered by our policy.
It’s not just your equipment, working as a health and beauty professional, your job likely relies on you being physically able too.
Personal accident cover is there should you suffer an injury that leaves you unable to work in the same capacity for some time - or even permanently.
Employers' liability is a mandatory cover in the UK if your business has employees. Whether your employees are full-time, part-time or interns you’ll need to get covered - although there are some exceptions, if you employ family members for example.
Failure to have this cover, or to be able to produce a certificate to prove you have it, could result in fines of up to £2,500 for every day you don’t have it.
One cover that you may not have considered is cyber insurance. This cover is actually relevant to most businesses if you take card payments or deal with any customer data.
If your salon keeps a record of customer names, emails, addresses or any other personally identifiable data you could be at risk of accidentally breaching GDPR legislation which could result in a significant fine.
A breach of the payment card data (PCI) used to charge your clients can equally lead to significant penalties and fines, even before you have compensated them for their losses.
Getting insurance cover for your business doesn't need to be complicated, and can be done quickly online. To complete a quote for insurance you’ll need the following information:
Business type - are you a sole trader, limited company or partnership?
What your business does - what type of work do you carry out?
Your business turnover - how much money do you expect to receive for your work?
Where your business operates - will your work cover the UK only or other territories too
Details of your employees - if you have any
Whether you have cover in place currently - and if you do, your renewal date if you know it
Depending on what your business does, there may be other information required to get the right cover for your needs.
Insurance needn’t be expensive and our cover starts from just £5.13 a month. The price you pay will depend on the level of cover and level of risk your business faces.
Our insurance covers a range of health and beauty businesses, including beauticians, makeup artists, beauty therapists, hairdressers, barbers, manicurists, pedicurists and nail technicians.
If you have physical premises there are a few additional covers to those listed above that you’ll need to consider.
The beauty of being self-employed is that you can choose when to work. Our flexible cover by monthly subscription means you can change, pause or cancel your cover any time without fees.
Public liability insurance, provides cover for legal and compensation costs in relation to a claim made against a business due to injury or property damage inflicted on a non-employee
Professional indemnity insurance, or PI insurance, is designed to protect your businesses if a client loses money because of a mistake you made in your professional services.
Travel insurance is a form of cover to protect you while you are away on holiday or travelling abroad. it can also provide monetary compensation for other loss or inconveniences you may suffer when your travels don't go to plan.