Insurance for Beauty Therapists And Beauty Salons

Key risks

Common industry risks

Understanding the risks in your industry and how our comprehensive coverage responds to protect your business.

The Risks

Risks Response

Employee Fidelity

A staff member steals cash, stock or equipment from your salon, causing direct financial loss that the business must absorb and recover.

Employee Fidelity can cover loss from employee dishonesty, available under most Professional Indemnity or Management Liability Insurance.

Investigation Costs

A complaint about your beauty services triggers a formal investigation by a regulatory body or professional association, resulting in legal costs.

Investigation Costs is a benefit commonly included in Professional Indemnity Insurance, which may cover legal expenses arising from a regulatory inquiry.

Third Party Property Damage

Liability arising if your beauty work damages a client's belongings, premises or other third party property.

Public Liability Insurance may respond to third party property damage claims arising from your business activities.

Professional Indemnity

Liability arising if a client claims your beauty advice or professional services caused harm, loss or financial damage, and seeks compensation.

Professional Indemnity Insurance may respond to claims of alleged negligence or errors in your professional services, including defence costs.

Public Liability

Liability arising if your beauty services cause third party injury, skin damage or property damage to a client or visitor.

Public Liability Insurance may respond to third party injury and property damage claims arising from your business activities.

Employee Fidelity

The Risks

A staff member steals cash, stock or equipment from your salon, causing direct financial loss that the business must absorb and recover.

Risks Response

Employee Fidelity can cover loss from employee dishonesty, available under most Professional Indemnity or Management Liability Insurance.

Investigation Costs

The Risks

A complaint about your beauty services triggers a formal investigation by a regulatory body or professional association, resulting in legal costs.

Risks Response

Investigation Costs is a benefit commonly included in Professional Indemnity Insurance, which may cover legal expenses arising from a regulatory inquiry.

Third Party Property Damage

The Risks

Liability arising if your beauty work damages a client's belongings, premises or other third party property.

Risks Response

Public Liability Insurance may respond to third party property damage claims arising from your business activities.

Professional Indemnity

The Risks

Liability arising if a client claims your beauty advice or professional services caused harm, loss or financial damage, and seeks compensation.

Risks Response

Professional Indemnity Insurance may respond to claims of alleged negligence or errors in your professional services, including defence costs.

Public Liability

The Risks

Liability arising if your beauty services cause third party injury, skin damage or property damage to a client or visitor.

Risks Response

Public Liability Insurance may respond to third party injury and property damage claims arising from your business activities.

Important: Scenarios are examples only. Coverage is subject to policy terms, conditions and exclusions. Limits and sub-limits might apply. Policy wordings vary between insurers. Refer to the PDS or Policy Wording for details.

Claim examples

Beauty Therapists And Beauty Salons claim examples

Real-world examples of how our insurance helps beauty businesses and their clients

Client Reaction to Recommended Treatment

SCENARIO

A beauty therapist recommends a skincare treatment program to a client. Following the advice, the client purchases and uses the recommended products and later claims the advice was negligent, resulting in financial loss and ongoing skin damage

WHY IT’S COVERED

Professional indemnity insurance may respond to claims arising from negligent advice or recommendations made in the course of providing professional beauty services, including associated legal defence costs.

Injury in the Salon

SCENARIO

A client slips in the salon reception area and sustains an injury. A claim is made against the salon owner.

WHY IT’S COVERED

Products Liability Insurance may respond to compensation and legal costs arising from bodily injury or property damage caused by a product you manufactured or supplied.

Accidental Damage to Client Property

SCENARIO

During a salon visit, treatment equipment is accidentally knocked over and damages a client’s personal belongings. The client seeks compensation.

WHY IT’S COVERED

Public Liability cover may respond to claims for accidental damage to third-party property arising from your salon activities.

Garage Damage

SCENARIO

Driving to a mobile treatment booking, you reverse into a client's garage door while parking. The door buckles and they ask your salon business to cover the repair bill.

WHY IT’S COVERED

Commercial Motor Vehicle insurance may respond to third party property damage claims arising from the operation of your insured vehicle.

SCEANRIO

A support worker gave a participant the wrong medication due to a mislabeled pillbox. The participant experienced severe drowsiness and dehydration, requiring overnight hospitalization.

WHY IT'S COVERED

Costs included $8,200 for hospital and rehabilitation, $12,500 for legal defence, and a $7,500 settlement to resolve the claim out of court.

Client Reaction to Recommended Treatment

SCENARIO

A support worker gave a participant the wrong medication due to a mislabeled pillbox. The participant experienced severe drowsiness and dehydration, requiring overnight hospitalization.

WHY IT’S COVERED

Costs included $8,200 for hospital and rehabilitation, $12,500 for legal defence, and a $7,500 settlement to resolve the claim out of court.

SCENARIO

A support worker gave a participant the wrong medication due to a mislabeled pillbox. The participant experienced severe drowsiness and dehydration, requiring overnight hospitalization.

IS THIS COVERED?

Costs included $8,200 for hospital and rehabilitation, $12,500 for legal defence, and a $7,500 settlement to resolve the claim out of court.

FAQs

Beauty Therapists And Beauty Salons insurance queries

How do I make a claim?

You should notify your insurer as soon as you become aware of a claim or circumstance that may give rise to a claim which could include a client complaint, you discovering an incident or an allegation of harm. Claims should be made in writing and handled in line with the claims notification requirements which will be outlined in your policy wording.

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How do I make a claim?

What is a Certificate of Currency?

A Certificate of Currency is issued by an insurance company and is something you can use as proof that your existing insurance policy is valid. It contains all the information regarding your policy. You may be asked from time to time to prove your insurance - for loans to your business, for landlords of your premises, or for certain clients you might have. The moment you purchase your insurance from upcover you can send your proof of insurance to whoever requires it, at just a click of a button.

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What is a Certificate of Currency?

How quickly do I need to report an incident to my insurer?

You should notify your insurer as soon as you become aware of any incident, claim, or circumstance that may give rise to a claim. Professional Indemnity insurance typically operates on a "claims made and notified" basis, meaning both the claim must be made against you AND you must notify the insurer during the active insurance period (or discovery period if applicable). Late notification after policy expiry may not be covered unless you have purchased an extended discovery period. Prompt notification is essential to protect your rights under your insurance.

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How quickly do I need to report an incident to my insurer?

What is a retroactive date?

A retroactive date is the earliest date from which a claim can arise and still be covered under your policy. Professional Indemnity and certain other claims-made policies will only respond to claims arising from acts, errors or omissions that occurred on or after the retroactive date listed in your policy schedule. If an incident occurred before your retroactive date, it typically will not be covered even if the claim is made during the current policy period. Maintaining continuous cover without gaps helps protect your retroactive date — check your policy schedule or ask your broker if you are unsure of your retroactive date.

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What is a retroactive date?

Do beauty salons need Professional Indemnity insurance?

Professional Indemnity insurance is designed to cover claims arising from professional negligence, errors or omissions in the services you provide. While it is not a legal requirement for beauty salons in Australia, it is commonly held by beauty salons across Australia. Many clients, professional associations and booking platforms may expect you to hold current Professional Indemnity cover before engaging your services. Without this type of cover, you could be personally liable for legal costs and compensation claims. Speaking with an insurance broker can help you understand the level of cover appropriate for your circumstances.

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Do beauty salons need Professional Indemnity insurance?

What if an employee steals money or products from my salon?

Employee fidelity coverage may respond to direct financial loss caused by dishonest or fraudulent acts committed by your employees. This includes theft of cash, products, or equipment. You'll need to provide proof of the loss and the insurer will assess the claim according to policy terms.

Learn More

What if an employee steals money or products from my salon?

Blogs

From our blog

Get the latest updates on our articles

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Mar 16, 2023

Beauty & Personal Care

What Licences Do I Need To Open A Hair Salon?

Learn about the necessary licences and regulations for opening a hair salon, including the SHB30416 Certificate III and public health regulations, to provide assurance of your skills and knowledge and stay in compliance with regulatory agencies.

Read Full Article

Mar 16, 2023

Allied Health

Does A Therapist Need Public Liability Insurance?

Having the right insurance policy can provide therapists with the protection they need to avoid any serious financial consequences.

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May 9, 2022

Beauty & Personal Care

Why Do Beauty Salons Need Indemnity & Liability Insurance?

Owners of beauty salons generally buy indemnity and liability insurance. If you're wondering why a beauty salon needs indemnity & liability insurance, read on.

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The information contained on this website is general advice only and has been prepared without taking into account your individual needs, objectives and financial situation. It should not be relied upon as advice. All insurance products are subject to the terms, conditions, limits and exclusions contained in the relevant policy wording and Product Disclosure Statement. Before deciding whether a particular insurance product is right for you, please consider your personal circumstances and read the relevant Product Disclosure Statement, Target Market Determination, Policy Wording, and Financial Services Guide.

Insurance for Beauty Therapists And Beauty Salons

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Common industry risks

The Risks

Risks Response

The Risks

Risks Response

The Risks

Risks Response

The Risks

Risks Response

The Risks

Risks Response

The Risks

Risks Response

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Coverages for Beauty Therapists And Beauty Salons

Beauty Therapists And Beauty Salons claim examples

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WHY IT’S COVERED

SCENARIO

IS THIS COVERED?

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Beauty Therapists And Beauty Salons insurance queries

How do I make a claim?

How do I make a claim?

What is a Certificate of Currency?

What is a Certificate of Currency?

How quickly do I need to report an incident to my insurer?

How quickly do I need to report an incident to my insurer?

What is a retroactive date?

What is a retroactive date?

Do beauty salons need Professional Indemnity insurance?

Do beauty salons need Professional Indemnity insurance?

What if an employee steals money or products from my salon?

What if an employee steals money or products from my salon?

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