The beauty and personal care market consists of a variety of services. A consumer market report by Statista stated that Canada’s total revenue in beauty and personal care in 2022 is projected to generate $10.15 billion.
The beauty industry is constantly changing with new and upcoming trends. At the start of the pandemic, Loreal Finance did a report on the global cosmetics market and found that there was an 8 percent decrease for the first time in history. Social media plays a big part in marketing new beauty products and bringing attention to small businesses. The emergence of social media motivated the start of many companies worldwide, especially due to the global pandemic of COVID-19.
In the event that a crisis occurs, you must prepare your business. Luckily for the beauty industry, NPD released a report that 22 percent of women disclosed they are spending more time and money on skincare and changes in their self-care routine since the COVID-19 pandemic. In fact, according to Allied Market Research, the personal care industry for men has an expected market size of $276.9 billion by 2030 at a CAGR of 8.6 percent from 2021 to 2030.
As a result of digital platforms, businesses are experiencing rapid expansion. With that, in 2022, 30.4 percent of total revenue in the beauty and personal care market is through online sales. If you are interested in starting an online business, read more: What is an e-commerce business and how do I start one?
The beauty industry includes a large range of professional services and products. Taking proactive measures to protect your business is just as important as being aware of your business’s risks.
British Beauty Council lists the three categories that constitute the beauty industry:
- Personal care and maintenance: Personal care and hygiene, skin, hair, dental and nail care.
- Personal enhancement: Fragrance and perfume, cosmetics and accessories.
- Services: Hair services, beauty treatments and holistic treatments.
In this case, we are focusing on beauty services and insurance for beauty businesses and professionals.
The list of beauty professionals and businesses includes but is not limited to the following:
- Barbers and hair stylists
Read more: Insurance for Barber Shops and Hair Salons
- Cosmetic tattoo artists: micro-blading,lip tattoo and permanent makeup professionals
- Nail technicians and nail salons
- Makeup artist: bridal, face and body painting, television and films and special FX makeup
- Teeth whitening hygienist
- Eyelash technicians
- Hair removal technicians and specialists: laser, waxing and sugaring
- Spa and salon owners
Do you work in the beauty services industry? Fuse Insurance can help mitigate the risks associated with your business or profession. The policies included in your beauty insurance package will vary depending on the types of services you provide.
For example, you are hired at a wedding as a bridal makeup artist across the province. Aside from the risk of losing or damaging your makeup kit, tools and supplies through the process of travelling, there are also health and safety concerns that you will need to keep in mind.
Canadian Centre for Occupational Health and Safety addresses the following health and safety issues for individuals in the cosmetics industry:
- Contracting infections
- Exposure to chemicals
- Skin and respiratory issues
- Strain injury
- Exposure to workplace violence
- Risk of cuts or burns
- Slips, trips and falls
- Fire and electrical hazards
Underdelivering resulting in a legal claim
- Ie. Your are an eyelash technician, your client believes that the service they received does not match the service that was promised and demands their money back, including removal and reapplication of the eyelashes. This costs time and money that could be allocated to a different client.
Third-party bodily injury and property damage
- Ie. You are an esthetician and you recently bought a microdermabrasion machine. You regularly inspect the machine and keep up with the maintenance according to its service suggestions. The machine malfunctions and causes a strong burning and stinging sensation to your client.. This can cost your business a fortune in legal fees if your client files a lawsuit against you. This will also cause downtime while you work to repair your microdermabrasion machine.
- Ie. You are a nail technician who rents a studio space in a commercial building. The building experiences fire damage and is forced to shut down for repairs. Your clients can no longer book nail appointments with you unless you find a temporary space or wait for your studio to be repaired.
Do you want to protect yourself, your business and your clients from these risks? Here are some of the insurance policies you should consider as a beauty service professional:
Commercial General Liability (CGL) is essential coverage that protects you from everyday risks in your business such as a customer slipping and falling over equipment resulting in an injury. CGL covers claims of third-party property damage, bodily harm or advertising injury that occur on or around your business premises.
Commercial Property Insurance protects your business location and its contents (incl. equipment and inventory) if you suffer a physical loss such as fire, theft, water damage or vandalism. This insurance will help cover the cost of repairing or replacing your property so that you can get back to running your business.
Commercial property insurance does not cover direct or indirect spills, discharge, dispersal, seepage, leakage, migration or release of pollutants, meaning the cost of clean-up is not typically included in your property insurance policy. However, you may consider adding an extension of the Limited Pollution Liability Endorsement in your Commercial General Liability (CGL) insurance policy to increase your coverage.
Commercial property coverage does not insure loss or damage caused by fungi, bacteria or spores. The expenses for any testing, monitoring, evaluating or assessing of fungi or spores are omitted. We suggest you add an extension of Limited Fungi and Fungal Derivatives Coverage in your insurance policy if fungi or fungal derivatives are present at your commercial property.
Errors and Omissions (E&O, Professional Liability) is an essential coverage for a beauty services professional. If you offer your professional expertise or advice, you could be held liable if something goes wrong or you fail to deliver a service as a customer expected. Professional liability insurance can protect your beauty business from allegations of error or oversight in your work. It can help cover the costs associated with court fees, administrative expenses and settlement costs.
Business Interruption insurance can provide coverage for the income lost when your normal business operations are interrupted or stopped altogether. This interruption or damage must be caused by or be a direct result of a covered cause of loss, which are the same causes of loss found in your Commercial Property policy. There must be visible physical damage to your business property for it to apply.
Cyber Security Insurance is often overlooked but it is important to understand the risks of cyber attacks and threats, which are on the rise for small and medium-sized enterprises. Cyber security insurance will provide coverage for businesses that rely on technology to minimize the downtime associated with cyber-attacks.
Equipment Breakdown Insurance is an extension of commercial property insurance. This policy provides coverage for exclusions that commercial property may not have. You can use this insurance to protect your equipment from internal damage, including electrical and mechanical failures.
Beauty businesses invest a lot of money into tools and equipment. This policy will provide coverage for the repair or replacement cost if your tools are damaged, lost or stolen. In order to ensure you have adequate coverage, you will need to make an inventory list of what tools and equipment your business owns.
When you are transporting materials to and from job sites, there is room for accidents to happen, which can damage your equipment and slow down your projects. If you are using a vehicle to drive to work, your warehouse or anywhere in between, Commercial Auto Insurance will help cover you for accidents that happen while travelling on the job.
Our brokers at Fuse Insurance will work with your business to choose the right insurance coverage to help your business recover from unforeseen events while ensuring you experience minimal interruption and financial impairment to your operations. Our online quote application is quick and easy and provides the information we need to get your insurance policy in your hands as soon as possible. To start your quote now, fill out our online application or call 1-866-387-FUSE (3873).