5 Essential Things to Consider When Buying Public Liability Insurance for a Beauty Business

Running a business carries risks no matter what business activities it does. One thing that even small business owners would not want to face is having to pay for legal costs due to claims of accidents and property damage. Because you interact physically with your clients, it becomes important to have these aspects covered in a form of Public Liability insurance.

Before buying any insurance policy, there are things you need to take into consideration.

What Is Public Liability Insurance?

Public Liability insurance covers you if a client or member of the public claims they have been injured in your business premises. Aside from personal injury, it also covers you for claims on property damage caused by your business activities.

What to Consider When Buying Public Liability Insurance

You’ve done the hard work and your business is all set up and ready, all that’s left is insurance to make you feel at ease. To make things a bit easier, we have created a guide to help you when choosing your Public Liability policy.

Are all of your business activities covered?

The type of Public Liability policy you require would depend on the type of business, size, turnover, number of people you employ and several other factors. It’s always important to check your policy wording to ensure it adequately covers your business activities. Your insurer can help you with comparing insurance policies.

Do you have enough cover?

Generally speaking, public liability products have a level of cover of 10 or 20 million dollars. Consider whether the advice from the insurers meets your requirements before choosing the level of public liability cover that meets your needs.

For example, take a busy cosmetic injector clinic in a shopping centre vs a home-based nail salon. Two different professions and environments. The cosmetic injector clinic with staff, clients coming and going creates endless potential for an accident to occur. In comparison, a nail technician working from home who may occasionally have clients visit their premises, the level of risk is much less to that of the cosmetic injector clinic and would not need the same level of cover.

How much should you be paying?

After learning about how much you want to be covered for, the next thing you need to consider is the amount that you have to pay. While you might be tempted to purchase insurance at a lower cost, the cheaper option may not provide your business with the sufficient coverage it needs, which won’t represent a saving if in the event an accident does happen.

Professional insurance brokers may only give you general advice, so make sure to ask more about what you would get after paying the premium. Know the specifics to get the most of your policy.

Is there anything the policy doesn't cover?

Apart from knowing what policy you are about to buy would cover, you should also know the exclusions. There are many options when buying Public Liability insurance, so it’s important to understand the nitty-gritty. Do not be afraid to ask insurers if there are exclusions in your public liability policy.

Am I legally required to have Public Liability insurance cover?

In general, this insurance may not be mandatory in Australia. But there are different laws in every Australian state, and your business could be required to secure this policy. It’s important to check with your insurer and relevant authority to know if you are required.

There are different circumstances where Public Liability is a requirement, including industry associations, professional memberships and some work contracts. Also if you are renting your business premises, your landlord will likely require you to have a Public Liability policy in place as part of your leasing agreement.

Protect Your Beauty Business with Public Liability Insurance

Every business owner’s dream is to run their company smoothly without letting any financial problem hinder their daily operations. Whichever state you are residing in Australia, it would be helpful to mitigate the risk and allow an insurer to handle the unwanted mishaps.

Sparrow Insurance understands the risks involved in the beauty industry. Let us assist you in arranging your public liability insurance today.

If you would like to get estimates on insurance quotes, you can utilise our instant quote online.

FAQs

1. What does public liability insurance cover in the salon business?

It covers compensation costs, legal defence costs, and repair or replacement to damaged property. However, if it’s the products you sell or recommend are the ones that caused the injury, you need product liability insurance. To understand more on the liability cover, get insights from an insurance broker like Sparrow Insurance.

2. Do mobile beauty businesses need public liability insurance?

Yes. Running a mobile beauty salon also carry risks like slips and falls and other forms of personal injury, thus a need for this type of insurance.

3. What happens if you have no public liability insurance?

If you have decided to start a business without getting business insurance, you put yourself at financial risk when mishaps happen. It’s an important cover for your beauty business because you have a legal liability to your clients.

General Advice Warning

This advice has been prepared without taking into account the client's objectives, financial situation or needs.

Because of that, before acting on the above advice, the client should consider its appropriateness (having regard to their objectives, needs and financial situation).

If the advice is related to the acquisition of an insurance contract, the client should obtain a Product Disclosure Statement relating to the product before deciding whether to acquire it.

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