A support worker gave a participant the wrong medication due to a mislabeled pillbox. The participant experienced severe drowsiness and dehydration, requiring overnight hospitalization.
WHY IT’S COVERED
Costs included $8,200 for hospital and rehabilitation, $12,500 for legal defence, and a $7,500 settlement to resolve the claim out of court.
Product Reaction
SCENARIO
A support worker gave a participant the wrong medication due to a mislabeled pillbox. The participant experienced severe drowsiness and dehydration, requiring overnight hospitalization.
WHY IT’S COVERED
Costs included $8,200 for hospital and rehabilitation, $12,500 for legal defence, and a $7,500 settlement to resolve the claim out of court.
SCENARIO
A support worker gave a participant the wrong medication due to a mislabeled pillbox. The participant experienced severe drowsiness and dehydration, requiring overnight hospitalization.
WHY IT’S COVERED
Costs included $8,200 for hospital and rehabilitation, $12,500 for legal defence, and a $7,500 settlement to resolve the claim out of court.
SCENARIO
A salon owner discovers that an employee has been taking cash payments from clients without recording them in the system over six months, resulting in a $12,000 loss to the business.
WHY IT’S COVERED
Employee fidelity coverage may respond to direct financial loss caused by dishonest acts committed by employees.
Employee Theft
SCENARIO
A beauty therapist sells a branded exfoliating serum to a regular client after a facial. The client later reports a severe rash and swelling after using the product as directed. They claim the serum was defective or unsuitable for sensitive skin and demand compensation for medical bills and lost income.
WHY IT’S COVERED
Product liability can respond when a product you sell, apply or supply causes injury or property damage to others. It can help cover compensation payments and legal defence costs arising from the incident
Beauty Product Claim
SCENARIO
A client experiences a severe allergic reaction to a hair dye despite completing a patch test 48 hours earlier. They require medical treatment and claim compensation for medical expenses and time off work due to the reaction.
WHY IT’S COVERED
Professional Indemnity coverage may respond to claims arising from allergic reactions to products used during beauty treatments.
Allergic Reaction
SCENARIO
A hairdresser accidentally spills bleach on a client's designer handbag while mixing colour at the station. The bag is permanently stained and the client requests compensation for the bag plus dry cleaning costs for their clothing.
WHY IT’S COVERED
Public liability coverage may respond to claims for accidental damage to client property caused by you or your staff while on your premises.
Client Property Damage
Important: Scenarios are examples only. Coverage is subject to policy terms, conditions and exclusions. Policy wordings vary between insurers. Refer to the PDS or Policy Wording for details.
Benefits
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What types of beauty businesses does this insurance cover?
This insurance may cover various beauty businesses including hair salons, beauty salons, nail salons, makeup artists, beauticians, cosmetic tattoo artists, and mobile beauty therapists.
What types of beauty businesses does this insurance cover?
This insurance may cover various beauty businesses including hair salons, beauty salons, nail salons, makeup artists, beauticians, cosmetic tattoo artists, and mobile beauty therapists.
Does the insurance cover allergic reactions to products I use?
Product liability coverage may respond to claims arising from allergic reactions to products used during your beauty treatments, such as hair dyes, skincare products, or waxing products.
Does the insurance cover allergic reactions to products I use?
Product liability coverage may respond to claims arising from allergic reactions to products used during your beauty treatments, such as hair dyes, skincare products, or waxing products.
Am I covered if I damage a client's clothing or belongings?
Public Liability coverage may respond to accidental damage to client property while on your premises, including spilling products on clothing or damaging jewellery during treatments.
Am I covered if I damage a client's clothing or belongings?
Public Liability coverage may respond to accidental damage to client property while on your premises, including spilling products on clothing or damaging jewellery during treatments.
Does this cover burns or injuries caused during treatments?
Public Liability coverage may respond to claims for injuries sustained during beauty treatments, including burns from styling tools, cuts from scissors or razors, or injuries during waxing.
Does this cover burns or injuries caused during treatments?
Public Liability coverage may respond to claims for injuries sustained during beauty treatments, including burns from styling tools, cuts from scissors or razors, or injuries during waxing.
Am I covered for mistakes in my professional services?
Professional Indemnity coverage may respond to claims that your services or advice caused financial harm to a client, while Public Liability coverage may respond to claims of bodily injury during treatments.
Am I covered for mistakes in my professional services?
Professional Indemnity coverage may respond to claims that your services or advice caused financial harm to a client, while Public Liability coverage may respond to claims of bodily injury during treatments.
What if an employee steals money or products from my salon?
Employee fidelity coverage may respond to direct financial loss caused by dishonest or fraudulent acts committed by your employees, including theft of cash, products, or equipment.
What if an employee steals money or products from my salon?
Employee fidelity coverage may respond to direct financial loss caused by dishonest or fraudulent acts committed by your employees, including theft of cash, products, or equipment.
Am I covered if a client claims I gave them bad advice about hair or skin care?
Professional Indemnity coverage may respond to claims arising from advice you provide as part of your beauty services, including recommendations about hair treatments, skincare routines, or product usage.
Am I covered if a client claims I gave them bad advice about hair or skin care?
Professional Indemnity coverage may respond to claims arising from advice you provide as part of your beauty services, including recommendations about hair treatments, skincare routines, or product usage.
How quickly do I need to report an incident to my insurer?
You should notify your insurer as soon as you become aware of any incident, claim, or circumstance that may give rise to a claim. Prompt notification is essential to protect your rights under your insurance.
How quickly do I need to report an incident to my insurer?
You should notify your insurer as soon as you become aware of any incident, claim, or circumstance that may give rise to a claim. Prompt notification is essential to protect your rights under your insurance.
Why Do Beauty Salons Need Indemnity & Liability Insurance?
Owners of beauty salons generally buy indemnity and liability insurance. If you're wondering why a beauty salon needs indemnity & liability insurance, read on.
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The information contained on this website is general advice only and has been prepared without taking into account your individual needs, objectives and financial situation. It should not be relied upon as advice. All insurance products are subject to the terms, conditions, limits and exclusions contained in the relevant policy wording and Product Disclosure Statement. Before deciding whether a particular insurance product is right for you, please consider your personal circumstances and read the relevant Product Disclosure Statement, Target Market Determination, Policy Wording, and Financial Services Guide.
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