Prioritising Insurance

Prioritising insurance may be necessary task for those who are just starting out as hairdressers, nail technicians, or beauticians. Most beginners do not have the funds to purchase all the recommended types of cover simultaneously. Therefore, they’ll need to start off with a good foundation and build up cover as their careers develop.

Types of insurance cover

There are numerous types of insurance cover available for the beauticians, hairdressers and nail technicians. Most of these covers are used for every type of business, so they are readily available. Some are essential to every professional, while others are only essential to a specific group of professionals. Here is a list of the types of cover that are known to be beneficial, listed in the order of their importance to all professionals:

Public Liability:

This covers the financial liability and legal expenses acquired as a result from the injuries, accidental deaths, and property damages a business has caused members of the general public.

Professional Treatment Liability:

This protects against claims for injury or damage caused by the treatments carried out and the products that have been applied. Even if you have not been negligent, you may still be held liable for damages and injuries suffered as a result of the products you use.

Product Liability:

This type protects against liabilities that arise due to the bodily harm or property loss a third-party may suffer due to a defected or flawed product. It can be a product that the business or individual manufactured, sold, resold, or provided for the customer’s use.

Comprehensive money cover:

This type is also known as Money Insurance and as Money and Securities Coverage. Comprehensive money cover provides compensation for the theft, accidental loss, or damage to money and securities that was on the business premises, in the home of any employee, in a safety deposit box, in a bank, in transit to or from the bank, or in the hands of bill collectors. Although it’s usually written on an “All Risk” basis, it normally excludes or limits compensation due to losses that result from employee dishonesty. This can be an important cover since most other standard Content Insurance policies exclude loss of money as part of the compensated losses.

Equipment and tools cover:

This compensates for loss or damage to tools and equipment owned by you, hired/borrowed by you, or your employees’ tools if they used them in the performance of their duties for your business. This cover does not normally cover office equipment, mobile, phones, or personal electronics equipment unless they are considered to be tools of your trade.

Building and Contents/property insurance:

Whether you own or rent your business property, you’ll need to make sure the building and all its contents are insured. Building & Contents covers the repair or replacement of the building’s infrastructure, permanent fixtures, and specified contents if the building is damaged or destroyed due to covered events. It should be noted that standard home insurance doesn’t normally compensate for business-related content or incidents which result from business activities if the insurer wasn’t notified of the home-based business’ existence prior to the mishap. Individuals must notify their home insurer even if all they do is use their homes as offices for their businesses. It should also be noted that content doesn’t necessarily include business tools, equipment, and stocked inventory.

Stock and Content/Commercial Content:

This provides cover for some or all of the following: Stocked inventory of products and supplies, trade furniture, business equipment, electronics, and tenant improvements to landlord’s property. Usually, the contents have to be specified on the cover, and there are limits to the amount of compensation paid.

Equipment Breakdown Cover:

This type protects against the financial burden of repairing or replacing various types of equipment due to breakdown, rupture or bursting pipes, or artificially generated electric current. It can cover computers, scanning equipment, phone systems, refrigeration systems and many other types of equipment. However, carefully read what the cover includes and excludes, as the terminology and definitions vary among insurers.

Employers’ Liability:

This covers legal liabilities incurred through employment-related accidents or diseases. It should be noted that this is not the same thing as a health insurance plan that covers routine medical expenses. It should also be noted that Employers’ Liability is normally mandatory if you hire anyone other than a closely-related family member. It should also be noted that this is not the same thing as Employment Practices Liability Insurance, which provides protection against claims from various claims of employment-related offenses, such as sexual harassment or employer’s discrimination.

Employee Dishonesty/Fidelity Bond Coverage:

This type of cover reimburses financial loss that’s caused by dishonest employees or their fraudulent activities.

Business Interruption Compensation:

This type compensates a business for loss revenue if it has to cease operations due to some event beyond its control, such as a natural disaster. It ensures that outgoing expenses can be paid, and helps to maintain the normal profit level. Normally, the cover includes limits as to when and how long a business can receive the compensation. The cover also normally includes benefits caps which set limits on the amount compensated. Business Interruption is also known as Consequential Loss or Loss of Profits insurance.

Goods in transit/Stock and Equipment in Transit:

This covers accidental damage or loss of stock and equipment while it’s being transported to and from a place of business or place where a service or treatment is provided.

Internal & External glass breakages:

Glass breakage insurance covers the accidental breakage of internal and external fixed glass, such as windows, porcelain basins, and mirrors. It compensates the cost of replacement along with costs of securing the premises (if required). Glass insurance is normally provided as part of a bundled package for shops but can be obtained a separate cover. It should be noted that what is covered may vary among insurers, so carefully read the policy.

Commercial Vehicle insurance:

This covers vehicles being used for business-related activities. Individuals need to notify their auto insurers if they are using their personal vehicles for business purposes. Most standard personal vehicle motor insurance policies will not cover claims if the car is involved in an accident or is damaged due to business-related activities, especially if the insurer was not given notice of the business-usage beforehand. Your insurer should be able to help you determine whether you need commercial vehicle cover or simply more addends to your current policies.

Many people simply opt for bundled packages that offer a little of several types of insurance when first starting out. Bundled packages are usually specifically designed for a particular group of professionals based on the common risks they may face. However, each individual should ensure the bundled package they select has adequate amounts of essential cover for the specific risks they may face. Prioritising Beauty, Hairdressing, and Nail Industry Insurance must be done whether purchasing bundled or single polices.