As a beauty business owner, a lot of work goes into creating a welcoming salon that delivers top-quality service. However, the reality of running any business is that you need to make sure you have the correct insurance.
Where beauty is concerned, this means covering all of your treatments on clients, products and any employees you hire. Plus, cover in the event that someone has an accident while on your property. Here is an overview of what to look out for.
Public Liability Insurance Beauty
According to NimbleFins, public liability insurance Even with the highest level of training and health and safety procedures, working with the public is never risk-free, not least when performing beauty treatments on them.
Public liability insurance is the most common type of business insurance. For good reason, it will protect against third-party personal injury and property damage compensation claims and any associated legal costs. This means that should a client sue you because they had an accident in your salon or a reaction to a treatment, you’d be financially covered for this.
According to NimbleFins, professional treatment cover is another important type of insurance for beauty businesses. Treatment liability insurance is a type of professional indemnity cover designed for beauty therapists. It can cover situations such as a client being dissatisfied with treatment advice you’ve given. Be aware that policies might stipulate that you have carried out treatments in accordance with a manufacturer’s advice for a claim to be valid.
Insurance For Dermaplaning
Dermaplaning involves using a blade to remove the top layer of skin from the face, provide exfoliation, and better absorb skincare products. If not performed correctly, dermaplaning can have disastrous results, especially for anyone who suffers from acne, sunburn, rosacea, eczema or psoriasis.
Working on the face is already risky, but add a blade to the mix and insurance for dermaplaning is a must. Usually, dermaplaning insurance similar to microneedling insurance is offered on an individual basis. So, you’ll need to check you are specifically covered in order to carry out any treatments without risk to your business. If your policy documents don’t list cover for dermaplaning, you probably aren’t covered for it.
Product Liability Insurance Beauty
Product liability insurance protects against claims of bodily injury or property damage due to the use of goods or products that your business made, distributed or sold. Product liability is commonly included with public liability in insurance policies.
An example could be that you sell your client a range of at-home beauty products, as a follow-up to treatment. Only, these products ruin a surface in their new bathroom, and it has to be replaced. Or, you could sell them an acid peel that causes long-term sensitivity to their skin.
If your salon has its own range of products, then product liability insurance is also a wise idea. After all, if it’s your name on the product, then it will be you who the client comes to should there be a problem.
Beauty Contents Insurance
Products and tools are at the heart of any beauty business. The items you purchase will depend on whether you offer general beauty services, or specialise only in areas such as waxing or nails.
However, it’s fair to say that to get your business kitted out with the relevant equipment, and the cost can run into tens of thousands. Therefore, you need beauty contents insurance to protect your equipment from loss, damage or theft.
Let’s take pedispa chairs as an example, which the average beauty salon may have 3-5 of, costing between £4,200 and £7,000 on average for a complete set. If even one chair gets damaged beyond repair, you will potentially lose a large percentage of your profits unless you replace it.
Likewise, products such as moisturisers, nail polishes and skincare also come at a cost. You need plenty of products to suit all skin types and preferences. Such items could be the target of theft, meaning you cannot carry out the relevant treatment.
What’s more, if you use premium beauty products (i.e., Sunday Riley or Crème de la Mer), this can leave a big hole in your pocket if they’re stolen or lost in an event like a fire or flood if you’re not insured.
|Beauty business tool||Average purchase cost|
|Nail polish collection (gel, acrylic, regular), lamp, tools and accessories||£650|
|Wax heater, wax beads, wax strips and accessories||£250|
Employers’ Liability Insurance
If your business grows to the point where you need to hire an assistant, you’ll also require employers’ liability insurance. This will cover you in the event that your employee is injured or becomes ill as a result of working for you, whether on your premises or elsewhere if you’re a mobile beautician. Unlike other insurance types, employers’ liability insurance is a legal requirement if it applies to you (i.e., in most cases if you employ someone).
In addition, a beauty business might need other types of business insurance such as legal expenses cover (to protect against contract disputes, HMRC tax investigations, etc.). And if you drive your personal car to visit clients, be sure you have declared ‘business use’ to your car insurer. This might add to your premium but is a legal requirement as you would be driving uninsured without doing so.
To Sum Up
If learning everything about the beauty world wasn’t enough, understanding what insurance you need for your beauty business is a tall order. However, by getting the correct insurance in place you’ll have peace of mind that you are covered should you be sued by a client, or if your property is damaged or stolen.
Without insurance, your business could be ruined and your reputation tarnished. So just like a top coat on a manicure, insurance is something you just can’t skip.