Australia’s beauty professionals are currently dealing with prolonged business interruption due to the COVID-19 pandemic.
Many are looking for ways to cut costs in the short term and ensure they’re in a position to get back to business when life returns to normal.
If you’re looking to achieve both these goals, it’s important to assess what costs you cut and which ones you continue to bear to safeguard your business. Insurance is one cost that many people will happily remove from their expense list however, before cancelling your insurance you should carefully consider the importance of holding onto it. You may not currently be giving advice or recommending products to your clients however, a client could turn around and make a claim for an incident that happened months or even years ago.
Professional Indemnity (PI) insurance* offers protection for businesses that provide specialist services or professional advice. It is designed to respond to claims against your business for losses as a result of actual or alleged negligent acts or omissions in the provision of your professional service or advice. PI Insurance will also assist with the legal costs associated with responding to or managing claims which are covered by the policy. For instance, if a client has had a bad reaction to a product you’ve used on them or alleged that you’ve acted improperly in your interactions, you could be at risk of a costly lawsuit which could spell disaster for your business when you’re not generating income. Importantly, PI insurance is triggered when the claim is made against you rather than when the underlying incident occurred.
If you have kept your lease, you should be aware of any insurance requirements contained within your lease contract. Often the contract will require you to hold Public Liability cover and also Glass Cover. This may be something that you can negotiate with your landlord.
Even with the doors closed there is the threat of fire or even theft. Consider the cost of replacing all the beauty products and equipment in your inventory. How would it impact your ability to get back up and running? With insurance for Portable Equipment* and Contents* you’re covered for replacement costs in the event of loss, damage or theft of your vital tools of trade and for stock. You should check with your insurer about any unoccupancy exclusion clause that may be included within your policy. You may wish to approach your insurer to see if they will not apply this clause or extend the applicable time frame.
If you are tempted to move all your products and equipment home, don’t rely on your household insurance to cover these items. You should check your policy wording as many household policies don’t always cover your business assets.
Even though cashflow has stalled, holding your insurance cover could provide valuable financial protection if another unexpected event impacted your business. It will also offer ongoing protection once you’re in a position to flourish when it’s time to reopen the doors to your salon or get back out to clients.
For more information on any of the aforementioned insurance products, click here, visit www.bizcover.com.au, or call 1300 920 875 for hassle free quotes.
As with any insurance, cover will be subject to the terms, conditions and exclusions contained in the policy wording. The information contained on this web page is general only and should not be relied upon as advice