There are several types of business insurance you should consider if you’re a self-employed makeup artist or run a hair or beauty salon, which include:
Professional indemnity insurance
The greatest risk faced by makeup artists and beauty technicians worldwide is liability risk. If something goes wrong with the service you provided or a client is unhappy with their beauty treatment, you could potentially face a very expensive lawsuit. As such, professional indemnity insurance is essential for anyone in the makeup, hair, nail or beauty businesses, particularly if you’re self-employed or a freelance beauty therapist or makeup artist.
Professional indemnity covers you against claims that the service you provided was negligent or fell short of expected professional standards. It’s the most important type of insurance to have for anyone offering professional services to the public and it may be a compulsory form of insurance in many circumstances (for example, offering regular makeup services for an ongoing show or stage performance). Cover is available starting from $2 million but can extend up to $10 million or more.
What it covers
- Payment of compensation if there’s a successful claim against you
- Payment of court-awarded damages to the litigant
- Cover for your legal defence costs
- Cover for the cost of disciplinary proceedings or disaster investigations
Public liability insurance
Public liability insurance is also essential for anyone in the beauty or makeup industries. It will cover you against claims that your business activity caused injury to a member of the public, or damaged their property. For instance, if a customer slipped on your mopped floor and broke a bone, this type of insurance would help cover you if an injury claim is made.
There can be some overlap with professional indemnity insurance for anyone providing a makeup or beauty service, which is why it can be a good idea to bundle your policies. This can make things much simpler in the event you need to make a claim and reduce the overall cost of your insurance, meaning you can get public liability coverage quite cheaply as part of the package. This insurance can offer between $5 million and $20 million worth of coverage.
What it covers:
- Third-party personal injury claims
- Damage to a third party’s property
- Legal fees to defend yourself
General business insurance
General business insurance may also be worthwhile if you have expensive tools or portable equipment to protect (such as the equipment used in laser hair removal) as part of your business. Beauty therapists should be aware that glass breakage is a common exclusion in general business insurance policies, so if you do have a salon full of mirrors you wish to insure, you may need to purchase it as an add-on to your policy.
Commercial vehicles also aren’t included under this type of insurance, so if you offer a mobile beauty service as a freelance or self-employed beauty technician, you may need separate commercial vehicle protection for your work vehicle.
What it covers:
- Fire, storms, theft, vandalism and collision which cause damage to your business assets
- Specialist cover for electronic equipment and other portable equipment
- Limited business interruption insurance