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Insurance advice for women entrepreneurs in health and beauty

May 31, 2017

Women Are a Force in the Business World

During the last few decades, women have come a long way in the business world. In the ’60s and ’70s, women owned around 5 percent of America’s small businesses. That number has grown to about 35 percent today. According to statistics, from 1997 to 2015, the number of women-owned businesses increased by about 75 percent. These businesses are responsible for generating around $1.5 trillion in revenue annually.

In particular, the health, beauty and fitness industries have enjoyed an influx of female business owners. To protect their investments, women entrepreneurs should secure small business insurance.

Assess Your Current Risks

Because being a business owner in the health or beauty industry comes with particular risks, be sure to purchase business insurance to prevent major losses in the event of a catastrophe or lawsuit. As a small business owner in the health or beauty industry, you must consider the amount of property that you own as well as the number of employees you have and what your business does. Then, evaluate the major risks that come with each one. If you can give your insurance professional a detailed explanation of each of your risks, he or she will be able to develop a solid coverage plan for your company.

Work With a Trusted Insurance Company

When it comes to your fitness, health or beauty business, work only with an insurance company that you trust. Consider working with an insurance company that specializes in coverage tailored for small businesses. Don’t select an insurance company based solely on rates as the best insurance providers know how to identify the risks that your company is facing and address them. To check whether a company is trustworthy, consider evaluating independent reviewer like Feefo.

Consider Your Budget

Depending on the size of your business, your company may not be able to swing a large monthly premium. If this describes your current budget, select an insurance policy that has a higher deductible because this type of coverage will feature a more affordable monthly premium. If you own a fitness facility, you may have higher risks than someone who owns a health food store. In this case, you may need to restructure your company’s budget to cover a high monthly premium due to major insurance risks or if you’re unable to cover a high deductible. Your insurance agent will be able to go over this with you in detail to determine the best choice.

Review Your Coverage Periodically

To remain protected, review your insurance coverage annually. If your business, started offering new services, has a new owner, increased its inventory, upgraded its equipment or made any other major changes, then report this information to your insurance agent to make sure that your company is covered thoroughly. Staying current is especially important if you decide to expand your business with foreign purchases, business relationships and sales. By keeping your policy updated, you’ll ensure that you have sufficient compensation should a theft or catastrophic issue occur.

What Type of Insurance Do You Need?

Regardless of industry, every business should consider :

  • Professional liability insurance
  • General Liability insurance
  • Workers’ compensation insurance
  • Product liability insurance

Professional Liability Insurance

Professional liability insurance, which is also referred to as errors and omissions insurance, covers you against negligent claims that arise from mistakes or a failure to provide a service. In this insurance category, there is no standard policy.

Every industry has its own unique risks and areas that require coverage. For instance, if you’re in the beauty industry, then you’ll want protection against treatments that don’t turn out as they’re designed to, possibly causing bodily injury. Your professional liability insurance will be customized to your company.

General Liability Insurance

General liability insurance protects your business from another person or business’s claims of bodily injury, associated medical costs and damage to property. For example, if your client slips and falls in your office (or if you cause an accident on a client’s premises). If you they sustain an injury, and you’re liability, genera liability insurance may cover the subsequent bodily injury claim.

Workers’ Compensation Insurance

Once you hire your first employee, add workers’ compensation insurance to your company’s policy. This coverage provides compensation for medical care, disabilities and even death. Even if the work that your employees complete is low risk, it’s still important to have workers’ compensation insurance. A worker could sue you for medical care to cover the treatment for carpal tunnel syndrome or a random fall.

Product Liability Insurance

If your company manufacturers products to sell on the general market, then it’s important to purchase product liability insurance. Even if you’ve taken every possible measure to ensure that your products are safe, make sure you’re protected with product liability insurance. A client could name you in a lawsuit because of damages caused by one of your products. This type of insurance is customizable, so your insurance agent will write the policy based upon your specific kind of merchandise.

Insurance Keeps You in Business

With the right insurance policy, you’ll be able to stay in business despite a lawsuit or catastrophic event. Small business insurance will not only safeguard you against life’s unpredictability but will also give you the confidence to invest and grow your fitness, health or beauty business.