Luckily figuring out what insurance you need for your beauty business isn’t that complicated. You just need to answer the following questions and you’ll be on the right path.
What services does your beauty business offer?
First and foremost, you need to have a clear list of what treatments you offer and the products that you use. Treatments generally fall into two main categories:
Non-invasive treatments
That generally means that your beauty treatments do not penetrate the skin.
Invasive treatments
Any treatment that penetrates the skin is considered invasive.
Irrespective of whether your services fall in the first, second or both categories, you will need:
Treatment insurance for beauty therapists
This cover is also known as professional indemnity insurance or malpractice insurance. It covers you when a client tries to sue you because the treatment or advice you have provided went wrong and caused harm.
Insurance providers usually specify the list of treatments they are willing to cover. Remember to read the list of covered treatments to ensure all of your services are insured.
Where does your beauty business offer its services?
Where you work will determine some of the covers you will need to protect your stock, business equipment, and premises.
As a beauty therapist you have very close and physical contact with your clients. As such, you will always need:
Public & products liability insurance for beauty therapists
This cover protects you when an accident happens and you are blamed for an injury or property damage. Someone might trip on your doorstep or scold themselves with hot water in your toilet.
Then there are the products you use in conjunction with the treatments provided. Ensure that you have products liability included. Beauty products can sometimes cause bad reaction and you could be held liable.
Business equipment & stock
Even home based or mobile beauty therapists invest in stock and business equipment, some of which can be quite expensive. Having an effective insurance policy which covers the cost of replacement of these items can be helpful.
Fixtures, fittings, content and tentans improvements cover
Whether you rent or own your beauty salon, you might want to protect the Fixtures, fittings and content with insurance. A burst pipe or fire can cause a lot of damage which can be hard to deal with without the help of insurance.
Tenants improvements is a cover designed for renters. As a beauty salon owner who rents premises, you’re probably going to invest quite a bit to make the space functional, inviting and fit for purpose. Tenants improvements cover pay for repair/replacement if you suffered a break-in, flood or fire.
Buildings insurance
If you are lucky enough to own your own beauty salon, you will also need commercial property owner insurance to protect your investment.
Could you still deliver your services if your salon premises had to close?
We all still remember covid and how it affected business wonders who couldn’t provide services at all during this period.
Business interruption insurance
Beauty businesses with premises are likely to suffer financially if they have to close their premises. This could be because of a significant fire, crime and other circumstances. Business interruption insurance is designed to replace of the lost income during the period of closure.
Does your beauty business employ people?
The definition of an employee in the UK is actually quite wide and goes well beyond a person who’s on your payroll.
Employers’ liability insurance
It is a legal requirement in the UK to employers’ liability insurance for anyone who works under your control and supervision, whether paid or not. That includes any employees, freelancers, temps, volunteers and helpers.
Could your business face unpaid invoices, contractual disputes or tax investigations?
A beauty business has many relationships throughout its life cycle - HMRC, landlords, employees, suppliers, clients, local authority and more.
All of these relationships can sometimes turn sour and can result in issues such as:
- Breach of contract
- Losing a licence
- Employment dispute
- Unpaid invoice or paid-for but undelivered stock
- Wrongful eviction
Commercial legal expenses
This cover is a really good backup for business related matters which are not typically covered by other legal covers. The other advantage of commercial legal expenses that it isn’t just for your defence. You can use to bring a case against a third party, for example a supplier who took your money but failed to deliver the goods.
Do you store your clients’ personal information?
Beauty businesses ask a lot of questions and under the law the answers could be considered sensitive. That means that you have a responsibility to store that data in a certain way and keep it confidential at all costs.
Cyber insurance
Cyber insurance protects your own financial losses if you suffer a hacking incident but will also cover any liability if you are sued for losing confidential data. Small businesses are often easier targets for hackers because their practices and security aren’t as robust. A good cyber insurance product often comes with a bit of education as well.
In conclusion
There are a few other insurances covers out there aimed at beauty businesses but the above guide should answer for you what essential insurance you need for your beauty business.
