There are a few key types of covers that beauty service businesses should have:
Coverage | Explanation | Importance for beauty service firms |
Commercial Property Insurance | Covers beauty shop against property damage. E.g. fire, some types of water damage, explosions, burglaries, and more. | Critical |
Public Liability Insurance | Covers you against liability to third-parties for property damage or injuries. E.g. customers in your shop who slip & fall, due to a puddle left by your staff. | Critical |
Work Injury Compensation Insurance (WICA Insurance) | Covers your employees if they suffer work-related injuries/sickness. | Legally required for all manual workers (e.g. manicurist, hair stylist, masseuse, salon assistant, etc.), or workers who earn $2,600/month or less |
Business Interruption Insurance | Covers operating expenses if your beauty service business shuts down due to covered reasons, e.g. shop destroyed by fire. | Very good to have |
Foreign Worker Medical Insurance | Covers medical costs for foreign employees. | Legally required for S-Pass and Work Permit holders |
Commercial Property Insurance: You’ll need to protect your Beauty Service premises. You’ve already invested lots of money into renovating your shop, so you certainly don’t want to pay for rebuilding it if it gets damaged.
This policy will cover your property, such as: beauty shop premises, renovations, fixtures & fittings, equipment like massage chairs or nail cleaning tools, furniture like chairs and tables, electronic equipment like computers, and other miscellaneous property.
Commercial Property policies cover a very broad range of damage, including fire, certain types of water damage, explosions, vandalism, burglaries, and more.
Public Liability Insurance: With a beauty shop, you’re going to have many customers coming in and going out of your store every day. If any of your patrons get injured due to your negligence, you could suffer a personal injury lawsuit. A Public Liability policy will protect you if you get sued for causing injuries or property damage. It covers legal costs like lawyer’s costs (which can be massive), and settlements/damages that you may need to pay.
Work Injury Compensation Insurance (WICA Insurance): MOM requires businesses to carry this insurance for every manual worker, and all workers who get paid $2,600/month and less. Examples of manual workers include: nail technicians, beauticians, barbers, hairdressers, slimming assistants, cleaners.Â
WICA Insurance covers work-related medical expenses for injuries, or sickness. This includes Covid-19 infections due to work.
Business Interruption Insurance: This covers your operating expenses if you can’t run your shop because you’ve suffered business damage. For instance, a fire might destroy your beauty shop, or severe water damage might force you to close your shop for repairs. This is a great cover to have, because it helps you to pay for costs like rent, salaries, and other overhead while you can’t generate revenue.Â
Foreign Worker Medical Insurance: MOM requires businesses to carry this insurance for every S-Pass and Work Permit employee.
