1. Do you provide services and advice to your clients?
Everything that you say and do to your client — any professional advice given and treatments performed need to be covered by Professional Indemnity or Medical Malpractice insurance.
Even the most competent and experienced professionals can get caught out sometimes by small mistakes or with difficult clients, and the outcome of having a client take action against you can be crippling financially, emotionally, and mentally. Medical Malpractice or Professional Indemnity insurance is essential.
2. Is your business customer facing?
Beauty and Cosmetic Injecting clinics are among the types of beauty businesses that are customer facing and need to be protected with Public Liability insurance.
Potential liabilities to third parties include things like your client slipping in your salon and sustaining a personal injury, or a product you sell to your client causing an allergic reaction. You will also require insurance coverage if you have third parties such as tradesmen or cleaners carrying out work in your business premises.
Public Liability insurance covers associated legal costs of compensation claims. Every business should have Public Liability insurance, even if you are a mobile service, or home-based business.
3. Does your business have premises, and do you have stock and contents?
If an unexpected event such as a storm, fire, accidental damage, or theft occurs, an insurance coverage to protect you from material or property 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, replacement or restoration of contents or business assets stolen or damaged, and specialised salon equipment cover.
Unforeseen circumstances can happen in your business, it is important to know which type of cover you need to include in your Business Insurance Package to protect your livelihood in the beauty industry.
4. Do you employ staff?
As an employer, workers compensation insurance is a legal requirement in Australia to protect both the employee and the business if a workplace accident occurs. The rules in each state are administered differently; they will be either handled by the government or by an insurer.
Your insurance broker will be able to advise what you need to do to ensure you are covered for worker’s compensation.
5. Could your business continue if you were injured or had an illness?
Small businesses, including beauty salons, generally rely on specific individuals who work in the business to be fit, healthy, and able to work. There often isn’t another person who can take the reins if in the event yourself or a contractor have an accident and are injured, or are unable to work due to illness.
Personal Accident and Illness insurance may provide the financial support needed to cover you, the business owner, while you are unable to work.