Businesses in all industries have a responsibility to provide safe, high-quality products to their customers. But with a business as personal and sensitive as skin care, the burden is even greater. Clients put their trust in beauty professionals every time they walk into a spa, salon or purchase a new moisturizer from a physical or online retailer. But even if you take every precaution, things can still go wrong. For example, a client could react poorly to the ingredients used in your cleansing formula, or a weather-related incident, such as an earthquake or hurricane, could leave the warehouse storing your skin care products in ruins. At the end of the day, the best way to protect yourself and your beauty business from risk are by investing in skin care business insurance.
Who needs skin business insurance?
Skin care business insurance, sometimes referred to as beauty insurance, beauty products insurance, or cosmetic liability insurance is best suited to retail stores, online retailers, wholesalers and distributors of skin care products. However, it may also be beneficial to skin care product manufacturers, importers, and wholesalers. Ultimately, no matter where in the supply chain your business sits, if you’re involved with skin care products, skin care business insurance is a wise choice.
What is skin care business insurance?
Skin care business insurance aims to protect businesses that design, sell, distribute, or manufacture (yourself or contracted through third parties) skin care products from risk. One major risk is liability claims that may arise from someone using one of your skin care products. In addition to the liability risks property insurance for any/all physical assets like inventory, equipment etc. is typically purchased.
What are the benefits of having skin business insurance?
The benefit of having skin care business insurance is that it protects your business from all kinds of risks, including property damage, bodily injury, mislabeling of products, and failure to provide adequate warning or instructions. For example, if a customer uses a moisturizer or facial serum you formulated and it causes a bad skin reaction, you could be held responsible for bodily injury. But with skin care business insurance, your business could be covered in the event of a lawsuit resulting from bodily injury or property damage to your customers.
What Coverages Are Offered With Beauty Product Insurance?
Coverages offered with beauty product insurance typically include:
- General liability insurance: This protects against claims of third-party bodily injury or property damage that occur on business premises.
- Product liability insurance: This protects against claims from a third party that a product used resulted in bodily injury or property damage.
- Commercial property insurance: This protects your physical assets from perils like fire, water damage etc. and can protect the building you own or operate in, its contents, leasehold improvements etc.
Optional coverages that skin care businesses may find beneficial include:
What types of business insurance does a skincare business need?
Skin care businesses should purchase a basic Business Owner’s Policy that includes general & product liability insurance, commercial property insurance, and business income insurance if there is a physical location.