Self Employed Insurance for Barbers in the UK

Insurance For Self-Employed Barbers

A risk is there in every kind of business even if you are a self-employed barber. It is very important that you have certain insurance covers so that you stay protected from unexpected losses. The insurance covers you will need as a self-employed barber are the following:

1) Property insurance

2) Liability insurance

3) Legal expenses insurance

4) Personal accident and sickness insurance

Property insurance

Having property insurance is of immense help as it covers you in case your property gets accidentally damaged or burgled. ‘Property’ refers to your barber shop building or your stock and equipment. Make sure that you have insured the full value of the property because if not, you can be penalized when there is a claim. 

Additionally, if you happen to be a mobile barber instead of one operating from a salon, it is important to ensure that all your stock and equipment is covered even when it is away from your place of business. 

Liability insurance

Liability insurance will cover you in the event of a compensation claim being made against you. The liability insurer will pay the amount awarded as compensation along with bearing the legal costs and overhead charges incurred. A team of legally trained persons will be sent to handle the legal proceedings on your behalf so that you don’t have to run from pillar to post for anything. 

It is very difficult to settle compensation claims from your own pocket as even minor injuries can easily lead to five-figured claims. The claims for serious injury can be 10 times more expensive! 

• Employer’s liability insurance

If you have employed a person, it is legally required that you have employer’s liability insurance. You cannot operate your business without it even if you have employed people on a temporary basis or as trainees. The employer’s liability insurance will cover all the compensations claims that your own employees will make against you. 

• Public liability insurance

Though having public liability insurance is not required legally, it will cover you when compensation claims are made against you by members of the public. And being a barber you will come in contact with a lot of people and therefore the chances of mishaps are more. It is not wise to operate without public liability insurance. 

• Products liability insurance

Products liability insurance is somewhat similar to public liability insurance. However, instead of covering compensation claims because of something you did or failed to do, products liability insurance will cover you when compensation is demanded from you due to a defect in the products sold or supplied by you. As a barber, it is but natural for you to supply products to your customers. If something goes wrong, you will be held responsible and a compensation claim can be made against you. Therefore, you must not operate without products liability insurance.  

• Financial loss extension

Both your public liability insurance and products liability insurance need to have a financial loss extension. If you don’t have this extension, compensation claims involving purely economic losses will not be covered. 

• Treatment risk extension

Your public liability insurance needs to have a treatment risk extension because, in the absence of it, claims arising due to professional activities won’t be covered. Being a barber, you will be providing professional service to your customers. Therefore, if things go wrong and a compensation claim is made against you, you will remain covered only if you have treatment risk extension in your public liability insurance. 

Legal expenses insurance

If you get involved in a legal matter it is obvious that you will have to pay huge legal bills. With legal expenses insurance, you will be covered by the insurer and also get legal advice to help you handle the issue. 

Personal accident and sickness insurance

If you happen to fall sick or get accidentally injured, having a personal accident and sickness insurance will be of help as it would provide you with a weekly benefit to pay your bills. If you can't work on a permanent basis, the insurer will give you a lump sum. This type of insurance is essential if you are a self-employed barber because you are not going to get sick pay from anywhere. This insurance will help you during difficult times.

Why Do Barbers Need Public Liability Insurance?

The barber or hairdresser industry is booming. Instagram feeds with a kaleidoscope of crazy hair colours make people go ‘Aww’! Men and women like having good hair days every day because the hair is such an important part of their overall look. There are now more hair products available than ever before and if you are a part of this industry, it is crucial that you protect yourself and your business. And that is exactly why you need Barber Public Liability Insurance.

Reasons why barbers should have Public Liability Insurance

If you are a barber, then getting this cover will mean that you are protected against instances when a member of the public or one of your customers claim that you have caused a damage to their property because of the products you used or supplied. This will also cover if there is an accident happening due to the nature of your work and someone claims compensation. So both accidents and property damage due to your work gets covered.

Compensation claims that a barber may be subject to

If you think that as a barber or a hairdresser you don’t really need Public Liability Insurance, think again. Your clients may be the nicest people on earth and they may love you to bits but when things go wrong, it is up to you to protect your business. Compensation may be something you have to pay up for any number of reasons as a barber, but it will usually be because if you or your business did something or failed to do something that led to someone getting injured or property damaged. Here are some instances that may lead to a potential compensation claim:

·      The scissors you use in your business to cut people’s hair may have been on the floor which made a client trip and fall down, thereby injuring a part of her body. She can file a lawsuit against you.

·      You may mistakenly let a client’s expensive phone get wet while she is getting her hair done. The phone gets ruined and the client files a lawsuit against you.

In both these instances, having Public Liability Insurance can be of real help to you. The truth is that no matter how small the matter may be, it can be tough on you if the lawsuit gets proven in court and you have to come up with thousands of pounds of compensation money. Add to that the legal fees you will have to incur plus the amount of money you will lose to deal with the legal problems will make the whole thing a tough matter for your business to get over.

More about Barbers Public Liability Insurance

Public Liability Insurance is standard in most professions where the business-owners are self-employed. But there is a difference between the standard plans and Barbers Public Liability Insurance. Here are the two facets of that difference:

·      Treatment risk extension: Treatment risk extension is something you need to be included in the plan meant as a barber or hairdresser. Most standard Public Liability Insurance will not cover claims that are caused due to a person providing professional services. As a barber, you are definitely providing professional service and that is why getting the treatment risk extension included in the plan is very important. This means that any claim that arises as a result of the professional services you render is covered.

·      Financial loss extension: This is another extension that should be a part of the Barbers Public Liability Insurance. If you don’t get this, you may be stuck with a plan that excludes claims that are made for purely financial reasons. If a client claims money for financial loss though there was no injury or property damage, then you want your plan to cover you. With this extension, you will be covered.

As a barber, making sure that you have the right Public Liability Insurance will mean that you are protected financially and you will get peace of mind in the process as well. It is best to talk to a reliable insurance agent before buying a plan to make sure that you have everything covered.

References:
https://www.moneyadviceservice.org.uk/en/articles/tax-and-national-insurance-when-youre-self-employed

https://www.gov.uk/government/organisations/hm-revenue-customs/contact/national-insurance-enquiries-for-the-self-employed

https://www.tradesmansaver.co.uk/knowledgehub/what-is-self-employed-public-liability-insurance