Importance of Choosing the Right Insurance for Your Beauty Business

As one of the beauty business owners in Australia, you ultimately aim to make clients look and feel great through a range of your hair and beauty services. However, you could encounter unprecedented business interruption beyond your control.

This is why you need insurance designed to protect your business from financial loss and to give you peace of mind so that you can continue doing what you do best.

Choosing the right type of insurance will always be a win for you and your clients.

Why do you need business insurance?

Business insurance coverage protects businesses from losses due to events that may occur during the normal course of business operation. Having an insurance policy will be helpful to protect your customers, your income and your business against legal claims if they arise. There are many types of insurance for businesses including coverage for property damage, legal liability and employee-related risks. You might want to take into account the following benefits for your salon insurance:

The Potential Risks of a Beauty Business

Legal protection

Financial security

Employee Welfare

The Potential Risks of a Beauty Business

Beauty salons and other types of beauty businesses pose a range of risks like injury to a customer, or potential damages to your building and equipment. Three main things could go wrong in running your business activities:

  1. Customer injury: Since beauty services in a salon require direct customer contact, injuries can happen. For example, if your laser technician accidently burnt their client during a treatment, a claim could be made against you.
  2. Property and equipment damage: Even simple accidents in a beauty salon, like damage to a customer’s property, may lead to a claim. Likewise, when your tools of the trade, like hair dryers, laser and facial machines, get damaged, it could cost you the repair or replacement.
  3. Chemical hazards: Hair and skin products are often chemically induced, which may cause skin reactions and potentially damaging spills.

Types of Insurance Every Beauty Business Needs to Consider

There are a variety of insurance products available and not all of them may be specific to your businesses needs. It is important to know exactly what cover your business requires.

Here are six of the most recommended general salon insurance types to consider for businesses in your industry:

1. Products and Public Liability Insurance

Public liability insurance and products liability cover legal defence settlements after a personal injury or property damage caused by your business activities and/or salon products and equipment.

Common claims under public liability insurance for a beauty salon include injury within your business premises to any member of the public and damage to their properties. Damage or injury caused by the products you use or sell is covered by product liability insurance.

Professional Indemnity/Medical Malpractice Insurance

Even the best therapists and technicians in the industry can face claims regarding customer dissatisfaction. A professional indemnity insurance may cover compensation costs to your clients if you are proven to be negligent.

3. Business Insurance

If an unexpected event such as a storm, fire, accidental damage or theft occurs, insurance cover to protect you for material damage losses is a must. Business insurance often comes as a package encompassing a range of different coverage options to cover the costs of structural damages, replacing or fixing contents stolen or damaged, and specialised equipment cover. 

4. Cyber Insurance

This is the right cover that can protect your business from mishandling of personal information and claim of data breaches within your business premises. You may be maintaining a website or a digital record of the personal information of your customers, especially online, making you at risk of a data breach. This policy covers you from data theft.

5. Personal Accident and Illness Insurance

If you as the business owner or contractor have an accident or fall ill and are unable to perform your normal work duties, this insurance may assist your business to enable you to employ staff to cover you while you are unable to work.

6. Management Liability

This insurance cover is specifically for private companies and provides cover if in the event there are claims of wrongful management, employment practices breaches, or theft by employees or third parties.

Choose the Right Insurance Cover with Sparrow Insurance

Knowing the right insurance policy fit for your beauty business or salon can protect your reputation and cover your financial risks. What we have provided is general advice on insurances, but it truly pays to seek advice from an insurance provider that checks your business objectives, financial situation and overall priorities.

With Sparrow Insurance, you can get the right kind of coverage in just a click. As the leading beauty insurance company in Australia, we cater specifically to what you need through our client-specific packages.

Ready to get started? Get in touch with us and have an estimated quote by using our online tool here.


What is the step-by-step process of getting my beauty business insurance?

  • Step 1: Reach us via e-mail or phone
  • Step 2: Receive our instant quotation
  • Step 3: Wait for updates

Where can I get more information about other insurance types and services?

Sparrow Insurance have a variety of professional salon insurance packages available. Please visit our website, or contact us directly to discuss your options. Contact us today!