While you may provide a relaxing experience for your clients, running a professional beauty business can be incredibly stressful.
With so much on your mind, renewing your business insurance is often towards the end of your to-do list.
In fact, we know a big chunk of small business owners admit that insurance is the last thing they consider when making business decisions.
We get it. Thinking about business insurance can be like hot wax on your nether region… painful.
But not thinking about it at all could lead to you to even worse situations like not being covered when something goes wrong. All it takes is a misplaced candle or a client to slip over and you could be in for an expensive time.
Here are 5 situations where small business owners of beauty salons and clinics should think insurance:
1. Risks changed? Think insurance.
When running a business, there are various risks that may affect customers and suppliers, such as accidents caused by understaffing or untrained workers, which could lead to claims against the business.
It is essential to have an adequate Public Liability insurance* policy to protect against third-party injury or property damage.
Additionally, it’s important to consider the risks to the business itself due to events such as fire, theft, or accidental damage, which may impact assets such as your stock, equipment, and commercial premises.
Business Insurance* is a package designed to provide cover for these assets and may need to be updated if any changes are made to the business premises or if there is an increase in external risks.
2. Gone online? Think insurance.
Especially since the COVID-19 pandemic, many professional beauty businesses now operate online whether it’s for bookings or to sell extra products.
While going digital can be profitable, it can bring with it extra risks.
Cybercrime has been growing in Australia recently, and professional beauty businesses are often not immune to being targeted.
If your business uses PoS devices, emails or has online systems (it doesn’t need to be a website) to manage business (including your booking systems) or you handle data that could be compromised (that could either be personal data related to your customers or even your IP), then you may be at risk.
Fortunately, Cyber Liability insurance* is designed to help protect you from claims and support your profitability in the event of a cyber breach or attack. Costs associated with defending a cyber claim are also covered.
3. New tools or equipment? Think insurance.
The equipment or tools your professional beauty business uses are an essential part of your success, and you will inevitably want more as your business grows.
As the value of your equipment increases, you can update your policy to ensure you have sufficient insurance to cover you if you make a claim.
Contents can cover you for damage to your contents and stock due to fire and other perils at your specified business address. Additionally, you can also get cover for Theft, which as the name suggests covers you against loss and damage as a result of theft or attempted theft.
If your salon is mobile, consider Portable Equipment insurance* (also known as General Property insurance) which can cover you for loss and damage to items of portable equipment associated with your business. These can include both tools of trade and items of stock.
4. Business grown? Think insurance.
As your beauty business develops, your revenue stream may increase, and new employees may be onboarded to help you keep up with the growing demand.
While this is great for business, it may mean that your business insurance could not cover the new risks you now face.
Ensure that when renewing your policy, it reflects the current size of your business.
5. Business circumstances changed? Think insurance.
New technologies and regulations could make or break your business.
Or maybe you have had to adapt your product or service to compete in this new environment.
When circumstances change, it’s a good idea to ensure your insurance has got you covered.
Think insurance today!
We know that you’re not going to think insurance everyday.
But hopefully, when these five situations arise, you’ll be urged to think insurance and review your cover.
Business insurance is there to protect you from the current risks you face. By not thinking about your insurance every now and then, these problems could become a lot worse if a claim were made against you.
What’s more, doing a review of your insurance could even help you save on your premium.
With BizCover, buying business insurance has never been easier. Just jump online and compare quotes from a range of leading Australian insurers and you could be covered in minutes.
Visit bizcover.com.au to compare quotes or give us a call today – no dramas!
*This information is general only and does not take into account your objectives, financial situation or needs. It should not be relied upon as advice. As with any insurance, cover will be subject to the terms, conditions and exclusions contained in the policy wording. © 2023 BizCover Pty Limited, all rights reserved. ABN 68 127 707 975; AFSL 501769.
This article is sponsored by BizCover.
Read the current issue of our digital magazine here:
- For more news and updates, subscribe to our weekly newsletter
- Follow us on Instagram
- Like us on Facebook
- Join Australia’s largest network of beauty industry professionals on LinkedIn
- Subscribe to our print magazine
Have an idea for a story or want to see a topic covered on our site and in our pages? Get in touch at info@professionalbeauty.com.au.