Choosing nail business insurance in the UK - where to begin?

Shopping for business insurance is one of those things that beauty professionals push to the very bottom of their to-do list, and who can blame them? You’re a nail technician and you chose this profession because you love working with happy customers and you enjoy making them look and feel amazing. However, you eventually have to stand up and face the large elephant in the room. Here is everything you have to know about nail business insurance and what exactly it means for your brand!

Tip: it would be wise to get all of your insurance work done BEFORE opening your business, in order to avoid any unpleasant situations!

Why do we need insurance?

Mistakes happen in every part of the service industry and nail businesses are no exception. All it takes is an improperly cleaned nail drill and presto - your customer ends up with an infection and you’re caught with your pants down. Disasters can come in all shapes and sizes, however, it's better to be safe than sorry. With nail business insurance, you can rest assured knowing that you have coverage if a client or employee were to file a court case against you due to issues pertaining to professional negligence. Although self-employed nail technician insurance doesn't have to include business insurance, it is still recommended that you consider getting public liability insurance and personal accident insurance - but more on that later!

The types of nail business insurance

This is going to be a long one, so bear with me - the list of business insurances is quite extensive, however, there’s no need to panic! When choosing the right plan for your business, you need to first look at your business model. Is your enterprise a large, multistation salon, a home-based studio, or an entirely mobile business? And are you the only treatment provider, or do you have hired staff? First, let’s start off with the most essential insurance plans that every nail business owner should have!

Business insurance: includes professional indemnity insurance, public liability insurance and employers’ liability insurance.

1. Professional indemnity insurance: did you ruin someone’s nails or have provided wrongful advice for fixing them? What about sensitive customer data leaks? If the affected client wants to take legal action against you, this insurance plan covers fees and payments owed to them. Also, consider looking into GDPR-approved software for storing client records.
2. Public liability insurance: this plan applies to businesses that treat clients on their premises or go to the customer themselves. If customers are injured or there is property damage caused by you, then this plan would cover legal expenses and any compensation claims.
3. Employers’ liability insurance: this is a required nail salon insurance plan if you’re hiring staff - this plan helps you to pay for employee injuries and any ailments they may contract caused by working in your business. Failing to purchase this plan may result in penalties. More on this on the gov.uk website.

Business legal protection insurance: this plan covers any prosecution fees and legal expenses from actions filed against your business due to employment issues and data protection breaches.
Product liability insurance: did your acrylic powder have an adverse effect on a client? Chances are they may want to file a legal action against you, in which case this insurance plan would cover legal expenses. And yes, clients can file a claim against you, even if you aren’t the maker of the product.
Stock insurance: this plan compensates nail technicians who have their products and equipment damaged or stolen, be it by a client or employee.
Business buildings insurance: if you’re renting a space in a building, then your landlord is responsible for this insurance. However, if you’re working from home or you own the property you work in, then this plan is essential if you want to cover theft on the property or damage done to it.
Business income insurance: if your business is affected by an event that hurts you financially, then this plan is for you.
Business contents insurance: whether you run your nail business from home, the client’s location or a salon, you care for your equipment and furnishings. But what would happen if they got damaged? Would you be able to get them fixed? This plan covers the expenses of having them replaced.

How much does it all cost?

We’re going to be blunt with you - it all varies, depending on your business model. A solo nail tech that is mobile won’t have to worry about employers’ liability insurance and business buildings insurance, which can save them a few hundred pounds a year. If you run a large business, then your nail salon insurance cost will depend on your location, the number of employees you have hired, your coverage needs, equipment value and even claim history. Before jumping the gun, make sure you’re aware of the possible expenses and speak with an insurance agent if there are any uncertainties.

Which one is right for me?

Although you’re legally required to have business insurance before starting off, other plans are usually optional - of course depending on your business model. Personal accident insurance, which isn’t on the list, is most often recommended to people who work in dangerous, accident-prone fields, such as construction - however, you can also invest in this plan. When choosing the right nail business insurance for your enterprise, first and foremost, get the most essential plans out of the way. Once you have those taken care of, start looking into optional coverage. Is your equipment prone to getting damaged? Have you been a victim of theft? Has your business suffered financially due to an unexpected event? Take these situations into account and, from there, decide which optional plans best-suit your situation.

In the nail business, unexpected situations hide behind every corner, and some of them can be very costly for you. Although you can’t predict the future, you can most certainly prepare for it! Get the coverage you need that’ll let you sleep soundly at night and prevent minor inconveniences from turning into major issues.