Do you need cosmetic tattoo insurance?
One of the most commonly asked questions to brokers is ‘do I need insurance?’ The simple answer is Yes, but it is important to understand why you need it and what it is protecting you from. In this blog, we will break down some of the policies available to you and how they can protect your cosmetic tattoo business.
What is cosmetic tattoo insurance?
Cosmetic tattoo insurance is a combination of public liability and professional indemnity insurance. It is designed to protect your business should an unfortunate event occur such as a third party suffering a personal injury (i.e. during a treatment) or a third party causing property damage (i.e. damage to the landlord’s or customer’s property).
Clients that suffer an injury during a treatment, such as pigmentation damage, scarring, burns etc will often demand reimbursement for their medical bills along with medication, creams and may also request compensation for any financial loss incurred from this injury.
What kinds of financial compensation?
When a client sues you, they will often try and get every penny they can. This could be detrimental to your cosmetic tattoo business. Your client may want to be remunerated for days they were unable to work. They may request you to pay for appointments they had to cancel if they were non-refundable or they might have been charged a cancellation fee. Your client may also demand you pay for ongoing treatments such as facials. The list of demands can go on and on which can total in thousands upon thousands of dollars.
If you do not have cosmetic tattoo insurance in place to help pay for your client’s injury, not only could this be incredibly devastating for your business’s reputation but it could send you bankrupt.
How do I know what insurance provider to choose?
Having a broker help you source the right insurance is invaluable. They will help make sure your service is covered under a public liability & professional indemnity policy. One thing to keep in mind when sourcing insurance is that cheaper isn’t always better. Ever heard that old saying; you get what you pay for? Well, that can be very true when it comes to insurance. If the policy is super cheap you may be missing out on coverage.
How much is cosmetic tattoo insurance?
Premiums change all the time but to help give you a rough idea, if your business has a turnover of less than $100,000 with roughly 1-2 staff, you will want to budget for at least $500. Keeping in mind if you increase your policy limits the premium will also increase.
What limits should I get?
As brokers, we cannot tell you what limits to get. This is because you may have signed a lease agreement that requires you to obtain a certain limit and the broker would be unaware of this information. So it is important to read through any documents you are signing to ensure you have the correct limits.
How do I get cosmetic tattoo insurance?