Why It's Essential to Check Your Insurance Policy Carefully

As beauty therapists, nail technicians, and hairdressers, insurance is a crucial part of protecting your business. Whether you run a salon or work independently, having the right insurance can save you from unexpected problems. However, to truly benefit from your insurance, you need to understand what your policy covers. Here's why reviewing your insurance documents is so important.

Know What You're Covered For

What’s Included
Insurance policies outline what situations are covered. At Professional Beauty Direct, we take time to understand exactly what your business needs. This might include protection against accidental damage to expensive equipment or theft of your kit. Understanding these details ensures your needs are met and helps you decide if the policy is right for your business needs.

What’s Excluded
It's equally important to know what your policy doesn’t cover. For example, if your policy doesn’t cover treating clients under the age of 18 for high-risk treatments like laser hair removal or IPL, you might face unexpected costs if an issue arises. Checking these exclusions can prevent unpleasant surprises. If you’re unsure, contact us and we’ll help clarify. 

Stay On Top of Payments
If you pay in direct debit instalments, timely payments are crucial to keep your policy in force. Knowing your payment schedule helps avoid missed payments that could result in your policy being cancelled, leaving your business vulnerable. 

Know your Limits
Insurance policies often have limits on claim amounts. For instance, there might be a limit on the amount payable for client injuries or property damage. Knowing these limits helps you prepare for any additional costs you might need to handle in the event of a claim.

Check Claim Excesses
Another important aspect to check in your insurance policy is the claim excesses. The excess is the amount you will need to pay out of your own pocket when you make a claim. For example, if your policy has a £350 excess for accidental damage claims and a client knocks into your machine, resulting in repairs costing £1,000 you will need to pay the first £350, and the insurance will cover the remaining £650. Knowing your excess amounts helps you be prepared when you need to make a claim and allows you to put some money aside in case it’s needed.

 Consider Changes at Renewal 
When your policy is due for renewal take time to check if anything has changed. Have you introduced new treatments or taken on more machinery? Although this should be notified to your provider instantly, renewal is a great time to reflect on any changes you have made to the way you trade and ensure you have the correct cover moving forward.

Peace of Mind
The main goal of insurance is to give you peace of mind. When you thoroughly understand your policy, you can handle emergencies with confidence. For example, if a fire damages your salon, knowing the claim process ensures you can act quickly to get your business back up and running as quick as possible.

Tips for Checking Your Insurance Policy
1.    Allocate Sufficient Time: Don’t rush. Take the time to read and understand each section.
2.    Highlight Critical Information: Mark important areas such as exclusions and claim processes.
3.    Seek Clarification: If any part of your policy is unclear, contact Professional Beauty Direct for explanations. We’re here to help you understand any insurance jargon.
4.    Regular Reviews: Review your policy regularly and at renewal to stay updated on any changes.

Checking your insurance policy documents carefully is essential. It equips you with the knowledge to make informed decisions, ensures you are adequately protected, and provides peace of mind in times of need. If you ever have doubts, contact our friendly team at 0345 605 8670.

18/07/2024