6 minute read
INSURANCE IN THE BEAUTY INDUSTRY
As a busy business owner in the beauty industry, it’s easy to feel overwhelmed by a seemingly endless list of to-dos. But there’s one admin activity that could forever impact your business if you put it off until it’s too late – your business insurance.
One small incident or accident that results in legal action or financial losses could have a devastating impact on the business you’ve built. Think of insurance like a SafetyNet that gives you peace of mind so you can focus on running your business and giving your clients and customers the best experience possible.
To dive into the nitty gritty details around business insurance for the beauty industry, we’ve spoken with Skye Theodorou, CEO, and co-founder of online insurance platform, uncover. Skye works daily with sole traders and small business owners to ensure they’re covered for the important work that they do.
1. Do all business owners working in the beauty industry need insurance?
If you work for yourself, or run a business, you should definitely look into business insurance to protect your business. There are a range of cover options out there and companies to choose from so doing your due diligence to ensure you’re getting the best possible cover for the activities you do is essential. Make sure that your insurer understands the activities you are carrying out so they can provide the best cover options for you. This can be particularly important if you’re working in the realm of cosmetic tattooing, tattoo removal, laser, and microblading.
2. What type of cover should beauty businesses have?
When it comes to the beauty industry, Products & Public Liability Insurance is a go-to cover option. It’s our most recommended product within the beauty industry, however, depending on the type of work you do, you might need more than one type of insurance cover.
As your beauty salon or business gives advice to clients, you might also want to consider Professional Indemnity Insurance. Professional Indemnity Insurance is designed to protect yourself and your business from liability claims arising from professional negligence, errors, or omissions in the services you provide.
Depending on how big your business is, and whether you have a management team, you might also want to look into Management Liability Insurance.
Another cover option that we often get asked about is cyber insurance. After the large-scale cyber breaches that have taken place in Australia over the past year, it’s no wonder this is a high priority for business owners.
3. What’s the difference between Public Liability and Products Liability Insurance?
Essentially, Public Liability Insurance protects you against claims that may arise from your day-to-day activities, whether that’s incidents that occur on your premises or during the course of your business. These events aren’t always directly related to the services you offer, either. For example, imagine you’ve just mopped the floors at the close of business, but a client comes rushing back in because they left something behind and slips and falls. If that client chose to take legal action for injuries they sustained, Public Liability Insurance would cover legal defence costs, settlements, or damages awarded to the injured party.
Products Liability Insurance, on the other hand, protects you from liability claims that may arise if a customer or client experiences an injury due to a product you sold or distributed. Perhaps they’ve had a severe reaction to a skincare product they purchased from you, or were injured by equipment in your salon or studio, this is where your Products Liability Insurance could step in.
4. I sometimes work out of the studio and in my clients’ homes. Will my insurance still cover me?
Every insurance policy is different, so you will need to let the insurance company know so they can find you the right option. Let’s say you’re setting up your makeup station on a client’s kitchen bench and accidentally knock an antique bowl onto the ground and it breaks, your Public Liability Insurance should be able to cover you for incidents like this.
This insurance product, however, can and should cover you wherever you provide your services, except if the public liability insurance is attached to a business pack, or property insurance in which case it may only be limited to your premises. It’s always best to ask your current insurer if you are not sure or want to check.
5. Is cyber insurance important? What does it cover?
If any aspect of your business is online or deals with the online space, then cyber insurance could be a consideration depending on what your risk level is. Before chatting to an insurance expert about whether this cover option is right for you, try heading online to the Australian Cyber Security Centre, they have a range of free resources and guides to help keep your business safe. Make sure you implement their suggestions and educate your team about the types of cyber risks and breaches that could occur.
6. How can I tell which cover is right for me? What should I look for?
Insurance can seem overwhelming, but it doesn’t have to be! A good place to start your journey is to write down all the activities you undertake during your workday and then jump on a call with an insurance provider and chat to them about what type of cover you’ll need.
7. I work as a sole trader and don’t run my beauty business full-time; do I still need insurance?
In short, yes! Unfortunately, litigation and incidents can happen to anyone, no matter how many hours a week you work. Even if you’re doing a short stint in the beauty industry or working a secondary job to earn some extra money, you need to ensure you’re covered for the work you’re doing if you want protection and peace of mind.
8. How else can I keep my clients and my business safe?
Taking proactive steps to keep yourself, your employees, and your clients and customers safe should be your #1 priority as a business owner. Ensuring you’re up to date with all the latest safety information, following Health and Safety Standards for your industry, checking local and state regulations, having all the appropriate training and certificates, and utilising high-quality products can help you mitigate incidents before they take place.
We hope that our customers never have to utilise their insurance policies, but we know the cover will be there for them to keep them afloat and protected when they need it most. Information provided is general advice only and has been prepared without taking into account any person’s particular objectives, financial situation or needs.
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