Company insurance is intended to safeguard the financial assets of a business owner and is a crucial investment for a makeup artist.
This article will discuss the primary insurance coverage for makeup artists, general liability insurance, as well as additional policies that are appropriate for this industry.
Table of Contents
Makeup Artists’ General Liability Insurance
Every firm, regardless of sector, has risks that should be insured. General liability insurance is the most frequent and comprehensive form of coverage that company owners purchase.
General liability insurance covers the following risks:
Physical harm
Damage to property
Medical expenses
Legal defence and decision
Personal and commercial harm
While general liability insurance is not legally needed for companies, operating without it is exceedingly dangerous. If your company is sued, you might face costs in the hundreds of thousands of dollars (or more). The only way to avoid this sort of catastrophe from destroying your organisation is to have an adequate general liability insurance coverage in place to assist pay for these losses.
Common Situations That A Makeup Artist’s General Liability Insurance May Cover
Example 1: While discussing cosmetics with a client, you unintentionally recommend a mixture to which the client is allergic, resulting in a reaction that necessitates medical attention. If this case proceeded to court, general liability insurance would very certainly cover any medical expenditures spent by the client’s allergy treatments, as well as any settlements.
Example 2: Your company produces a television commercial. In the advertisement, two actors represent delighted clients who refer to another local makeup artist’s firm, after which the commercial displays a picture of a clown. The other company discovers your ad and files a lawsuit against you, saying that the clown picture in your ad is a defamatory portrayal of their services. General liability insurance would most likely protect your company in the event of a settlement or court-ordered payment.
Example 3: A harried employee spills an open bottle of conditioner on the floor. An elderly client steps over the spill and stumbles, incurring a slight hip fracture while he goes to grab a mop. If your company was sued as a consequence of this, any hip injury compensation or settlement would very certainly be covered by general liability insurance.
Of course, this is not an entire list of risks covered by a general liability insurance policy, and certain situations may result in a specific peril not being covered. To minimise coverage gaps, it’s always better to speak with your agent about the terms of your policy.
General Liability Insurance Cost
In the United States, the typical makeup artist firm pays between $350 and $750 per year for $1 million in general liability insurance.
The cost of your coverage will be determined by a number of variables. Among them are your:
Location
Deductible
Employees’ number
Per-occurrence restriction
The overall aggregate limit
You may be able to get general liability insurance at a lower cost if you buy it as part of a business owner’s policy (BOP) rather than as a separate policy. A business interruption policy (BOP) is a more complete option that covers numerous types of coverage, such as business interruption and property insurance.
Other Coverage Needed by Makeup Artists
While general liability insurance is the most crucial, there are various different types of coverage to be aware of. Other forms of insurance that all makeup professionals should have are as follows:
Insurance for Professional Liability
Makeup artists of all types deal with customers who rely on them for cosmetics ideas and assistance. Clients may depend on their makeup artists to assist them in cultivating the appropriate look for business or personal activities. Your company should be confident in its services, but if a customer thinks they have lost an important professional opportunity as a result of your aesthetic advise or a professional mistake, you do not want to be held accountable in the absence of a professional liability coverage. This is an essential policy to implement for any company that provides crucial suggestions or makes sensitive personal changes for its customers.
Insurance for Business Interruption
A firm should be able to survive even the most difficult of circumstances. In fact, many successful firms have brief lulls or shutdowns as a result of potential calamities such as fires, floods, sickness, or prolonged power outages. Depending on how your makeup artistry company functions, disruptions may prohibit you from accessing critical business supplies or from physically performing planned client engagements.
If your company is disrupted for an extended period of time, this coverage may assist compensate for expected losses during the covered interruption. Company interruption insurance is typically included in insurance companies’ plans for business owners.
Coverage Options for Some Makeup Artists
In addition to the policies listed above, your makeup artist company may need other forms of coverage based on particular parts of your operations. Some of them may not apply to you, so be sure to ask your agent whether policies are appropriate for your company.
Insurance for Workers’ Compensation
Workers’ compensation insurance may become essential if you operate a firm with employees, depending on state laws. However, no company is completely immune against on-the-job mishaps, and this insurance may be useful for something as basic as an employee falling off a ladder while reaching for a high shelf. This insurance covers employees’ health, disability, and death.
Insurance for Product Liability
You may decide to grow your makeup artistry company by selling a product line. This might be a patented product manufactured by your firm or a product sold by a third party. In any case, cosmetic goods are often bought with the expectation that they are safe for use on the customer’s body.
If a product on your shelf is mishandled or discovered to have components that need a recall, product liability coverage may shield your company from significant consumer health claims. This sort of policy will be tailored to your company, concentrating on the type of product you offer as well as any issues that may arise as a result of its usage.
Umbrella Insurance for Businesses
This insurance is a supplementary strategy that aims to supplement any current coverage your company may have. Commercial umbrella insurance may extend the effectiveness of your other policies even further if they are updated to the greatest levels available. This is a measure for company owners that prefer to cover all of their bases. If you are afraid that the limitations of your current insurance will not adequately protect you, an umbrella policy may be the way to go.
For example, if your makeup artistry business is in an area where crime has started to grow, your insurance company’s given break-in protection coverage may be based on an older estimate of lesser risk. An umbrella insurance may provide additional security by functioning as a supplemental provision where your primary policy’s coverage ends.
Additional Security Measures for Your Company
Although investing in company insurance is simple (and necessary), it should not be your first line of defence. Yes, insurance will reimburse your company for cash losses incurred as a result of an occurrence, but it is much preferable to avoid losses altogether.
With this in mind, here are a few steps you can take to better secure your company:
Make use of legally binding contracts and other business agreements. (We provide free templates for several of the most often used legal forms.)
To safeguard your personal assets, form a limited liability company (LLC) or a corporation. (To discover how to incorporate an LLC or company in your state, see our step-by-step tutorials.)
Keep your company licences up to date.
Streamline the internal procedures of your company. This will eliminate unneeded variables from routine activities and establish a secure, consistent environment in which to do business.
If your company is an LLC, you should check into LLC insurance.