Understanding insurance for hair and beauty professionals

Whether you run a busy hair salon, work as a mobile beautician, or operate a home-based beauty business, your work involves more than helping clients look and feel their best. From treatment-related incidents and client injuries to damaged equipment, theft, and business interruptions, there are a range of risks that can affect your livelihood.

What is hairdresser and beauty insurance?

Hair and beauty insurance refers to the various insurance policies designed to help protect hairdressers and beauty professionals working in the industry.

Who is hair and beauty insurance for?

Hair and beauty insurance can help protect many different professions against possible claims, including:

• Hairdressers
• Barbers
• Hairstylists
• Colour technicians
• Dermal specialists
• Laser hair removal technicians
• Nail technicians and manicurists
• Eyelash technicians
• Beauty therapists
• Makeup artists
• And many more.

Why is hair and beauty salon insurance important?

Hair and beauty businesses can face a range of risks. For example, a client could be injured at your premises, a treatment could result in a claim, expensive equipment could be damaged or stolen, or an insured event (such as a fire) could temporarily prevent you from trading.

Having adequate insurance can help to alleviate financial strain and stress, and also reduce downtime and protect your reputation.

Special mention: Rent-a-chair contracts

Independent professionals who rent a chair or treatment room are often responsible for arranging their own insurance. While the salon owner may have insurance for the premises, it may not automatically extend to independent contractors or their business activities.

Working closely with clients

Hair and beauty professionals work closely with clients every day, often using chemicals, dyes, waxing products, heated styling tools, lasers and other specialised equipment. Even with the highest level of care, accidents can happen and costly claims can arise.

Business premises and property damage

Fires, storms and other weather events can damage business premises, equipment, or stock, and also interrupt normal trading. Remedying the damage can be expensive and time consuming.

Theft, vandalism and business interruptions

Theft and vandalism can be expensive for small businesses. Stolen business equipment or stock can be costly to replace, while damage to your premises could temporarily stop you from operating – whether this is an accident (like a car going through your front window) or malicious (like someone destroying outdoor signage).

BizCover research found that beauty businesses were the third most targeted type of business when it came to theft. Hairdressers were the fifth most targeted. The combination of high-value products and equipment, as well as public accessibility, could be what them more vulnerable than other types of shops.

Home-based businesses

If you operate a salon from home, don’t assume your home insurance will also cover business activities, business equipment or client-related incidents.

Types of hair and beauty business insurance

No matter what you specialise in or where you operate, all businesses are exposed to some level of risk. The below types of insurance are often considered by hair and beauty professionals.

Professional Indemnity insurance

Hairdressers and beauty therapists provide clients with both professional services and advice. Professional Indemnity insurance can cover legal fees and losses caused by errors or omissions in your work, real or alleged negligence, breaches of contract, and more.  It helps protect hairdressers and beauty professionals against claims arising from their professional advice, treatments and services. This could include a client alleging that advice you provided about a skincare treatment resulted in additional costs to correct the issue elsewhere.

Public Liability insurance

Salons are busy places to work. But even mobile or freelance hair and beauty specialists face public liability risks. Public Liability insurance provides protection for you and your hair or beauty business in the event a customer, supplier or a member of the public brings a claim against you due to their being injured or sustaining property damage as a result of your negligent business activities.

An example of this could be a customer slipping on a wet salon floor, or accidentally damaging a client’s handbag or clothing while providing a treatment.

Business Insurance Pack

Business Insurance is an insurance package designed to provide cover for your business contents, stock, tools and commercial premises when an insured event occurs (such as fire, storm, theft or even accidental damage). It can also cover loss of revenue due to business interruptions caused by an insured event, public liability claims, tax audit, employment practices and statutory liability risks.

For instance:replacing salon furniture, hair styling equipment or beauty products damaged in a fire or stolen after a break-in.

Business Interruption insurance

Business Interruption insurance provides cover for the loss of income and increased costs of operating your business caused by a specified insured event (such as property damage or fire). It’s designed to assist your business to recover from an insured event by paying ongoing expenses, like wages or rent.

Building insurance

If you own the buildings you do business from, Building insurance covers you for damage to those buildings (and the fixtures and fittings) caused by events like fire, storm, and forced entry.

For example, if the business premises are damaged during a severe weather event, then Building insurance may be able to help cover the costs of repairing damage to the salon building and built-in fixtures.

Contents insurance

Contents insurance can help replace business items (like stock, equipment, machinery, fixtures, fittings, and furniture) if they are damaged by a fire, storm, break in, or other covered event.

This could include replacing styling chairs, salon mirrors, treatment beds or retail products damaged during an insured event (such as a fire).

Portable Equipment insurance

Portable Equipment insurance (also known as General Property insurance) covers the loss and damage of tools of trade, items of stock, and unspecified items of lower value associated with your business.

You may wish to consider this kind of insurance if you are a mobile stylists or makeup artist. If tools and equipment are stolen or damaged during an appointment (say, travelling to a venue for bridal makeup) then Portable Equipment insurance could help.

Glass insurance

Glass insurance covers the breakage of internal and external glass and signage you own, or for which you are legally responsible, at the insured premises. Glass can also include mirrors, porcelain and ceramics, such as toilet and hand basins.

If a client breaks a mirror, or a car smashes through the shop’s front window, then Glass insurance may help cover the cost of a claim.

Protect your hair or beauty business with confidence

Whether you run a busy salon, work from home, or travel to clients, having adequate insurance can help protect your business from unexpected events. Compare quotes from selected leading Australian insurers and choose cover that suits the way you work.

The claims examples are illustrative only and should not be taken as an indication of how any potential claim will be assessed or accepted. BizCover does not assess, manage, decide or settle claims, whether on your behalf or on behalf of any insurer. These, and whether a claim is covered, are determined solely by the insurer.