Which Kind Of Insurance Is Needed For Running A Beauty Business?

On Friday, August 3rd, 2018

You will need insurance if you are running a business so that you don’t suffer due to unanticipated losses. No matter how careful you are, life can take an unexpected turn at any moment and it won’t even give you the time to think. Hence, it is always better to have an insurance cover to stay protected during difficult times.

Do you own a beauty business? Do you feel that it is relatively risk-free? However, that is not the truth. Just like any other business even this one needs to be insured so that you don’t suffer in any manner.

There is something called a beauty business insurance which is a package of different types of insurance that cover a number of risks that are usually a part of this business.

1) Property insurance

It is extremely important to have an insurance cover for your business property. In the event of it getting accidentally damaged or stolen, you will be covered by property insurance and you don’t have to suffer any loss. If you happen to have a mobile beauty business, you need to check with your insurer whether your business property is covered even when it is away from the premises of your salon.

2) Liability insurance

If someone makes a compensation claim against you, liability insurance will cover you. Liability insurance is of 3 kinds:

  • Employer’s liability insurance
  • Public liability insurance
  • Products liability insurance

Employer’s liability insurance

If you have employed people in your business, it is legally required to have employer’s liability insurance. It will help you out when your own employ makes a compensation claim against you when he or she is injured and holds you responsible for it.

Public liability insurance

The compensation claims made by the members of the public are covered by public liability insurance. It may not be a legal requirement but you should have it as a compensation claim can be a huge sum which will be too heavy for your pocket. Apart from the hefty amount, it has so many complex legal arguments that it is not advisable to operate without it. In the beauty business, it is quite common for you to come in contact with the general public and there are chances of things going wrong. So, it is always better to stay safe by having public liability insurance.

Products liability insurance

Usually, products liability insurance is included with public liability insurance. While the latter covers compensation claims that arise due to something you have done or have failed to do, the former covers claims that arise due to defective products sold or supplied by you. If the shampoo that you sold gives your client an allergy, she can make a compensation claim against you. Even if the shampoo has not been manufactured by you, you will be held legally responsible for it. Hence, to be on the safer side, you should have a products liability insurance cover.

Extensions of liability insurance

Every beauty related business needs to have the two most important liability insurance extensions and they are as follows:

Financial loss cover – This one is important as a standard public liability insurance policy excludes claims that don’t involve an injury or damage to property. The financial loss cover extension is just what you need as it covers claims for purely economic losses.

Treatment risk cover – This is another extension that missing in the standard public liability insurance policy. A standard policy will exclude cover for claims due to professional activities. However, as you are running a beauty business, most of the compensation claims would be arising due to professional activities, isn’t it? In the absence of the treatment risk cover, you would uninsured when a claim is made.

Other insurance you need

There are two more insurance policies that you need and they are:

1) Personal accident and sickness insurance

This insurance will help you when you get injured or ill. Even if you are not able to earn, this policy will provide you with weekly benefit and in case you are permanently disabled, you will get a lump sum.

2) Legal expense insurance

If you ever get involved in a legal matter, legal expenses insurance will protect you and it will pay for all the legal fees involved in clearing up the issue.

About - Narendra is the editor of www.thelifestyleis.com, a freelance writer, photographer, style blogger and PR strategist. He loves fashion and style and unashamedly expresses his interests.

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