11-09-2007
Protect yourself against hair-raising claims
by Karen Baldwin for Simply Business
The healthy and beauty industry is booming as people look to spend their growing disposable income on looking after and pampering themselves.
Time poor but cash rich consumers are happy to outlay considerable sums on the latest cut and colour, facial and massage or on the use of a personal trainer.
As such, there is now considerable opportunity for industry professionals to set up as a business or to work on a freelance or contract basis.
Hairdressers, beauticians, personal trainers and masseurs – all are the driving force behind the health and beauty industry in the UK.
But, as with other sectors where the type of work has a direct and personal impact on customers, those looking to become self-employed in the health and beauty industry need to ensure they are properly insured. Without the right cover, such a business may never get off the ground.
In an increasingly litigious society, professionals – particularly those who give advice and treatments - need to have comprehensive insurance coverage in place against potential damages claims. It does not matter to the customer how careful or skilled you and your staff normally are, if an accident happens to them.
Some businesses that need premises, such as hairdressing and beauty salons, need insurance similar to that of a retail outlet but with additional cover reflecting the use of chemicals and products or specialised equipment.
For all health and beauty practitioners, even for those without their own premises, public liability insurance is a key cover.
We have all heard horror stories of extreme and unexpected skin reactions to the use of beauty products or someone damaging their back by over-doing it with the dumb bells.
Insurance policies for health and beauty trades usually include public liability insurance, and if you employ staff you legally need Employer’s Liability insurance.
Public Liability insurance provides cover in the event that your business activities cause injury or death to a person or damage to their property. This insurance is designed to protect against those potentially costly claims for adverse reactions to beauty products or injuries incurred during a training session.
All businesses with staff are required by law to have Employer’s Liability insurance in place and this provides cover in the event that an employee is injured or killed while at work.
While these insurances cover the basics, they should really be viewed as a starting point and consideration should be given to covering against a range of other potential risks, including:
• Professional Indemnity Insurance – As a professional in your field, you may be sure that the advice you give will not adversely affect your clients. But if an accident happens to your client that can be proven to have been as a result of your advice or training, you could be liable to pay out compensation. Professional Indemnity offers cover for such an eventuality.
• Property – If you own your own premises, the condition of your business site is an important factor in your ability to trade. You will want to have full insurance cover in place to protect against fire, storms, water damage or similar.
If renting, check with your landlord that their insurance covers any risks associated with your business activities.
• Business related contents – This can include computers, furniture and specialised equipment for your trade. Contents insurance will ensure that if your assets are damaged or destroyed, your business activities are not hindered for very long.
• Fidelity guarantee – Insurance against the loss of money or stock as a result of fraud or dishonesty by your employees.
• Glass and sign cover – Many health and beauty businesses operate from premises with extensive signage and large glass windows. As this is not normally included under standard property insurance, it can be wise to look into it.
• Money – This generally covers the theft of cash or cheques
• Business interruption – Compensates for the loss of profit as a result of a disruption to your business, meaning you are not able to trade as normal. This may be anything from a fire that destroys your premises and takes six months to rebuild through to the loss of power supply making it impossible to trade for two days.
• Stock cover – even if you run your business from home, it’s likely that you’ll have some kind of stock – sports equipment, beauty treatments, hairdressing tools. You can make sure such items are protected for theft and damage by taking this cover.
Self-employed professionals who operate businesses from their home may not be aware that standard insurance for residential property and contents will not cover any business assets or activities. Getting customised cover that fits the needs of your trade should be a top priority on your business to-do list.
For those who offer a mobile service, providing services in the comfort of their clients’ homes, they need to ensure that their insurance policies cover this activity and that they have adequate coverage for their tools and equipment.
No matter what type of business you own, having the right insurance cover in place will give both you and your customers peace of mind, and will allow you to focus on doing what you do best – making people look and feel great.
Simply Business offers insurance for all types of health, beauty and fitness trades.
Compare low-cost, no-obligation quotes online from a range of providers.
