If you’re a tattoo artist or even the owner of a tattoo parlour, you undoubtedly know how risky it can be to operate your business without some form of insurance. But what do you need for your unique type of business?
Fortunately, it has become considerably easier for artists in this business to find the best policies to cover the different aspects relevant to this industry. Finding the best coverage is as simple as consulting with one of the many insurance brokers Brisbane business owners rely on for cover. We’re giving a short summary of what you’ll discuss with your broker.
Essential Insurance Policies For Tattoo Parlours
As with any other business, a tattoo parlour owner must protect the main areas of their organisation – namely your property, your employees and of course, yourself. For the most part, many insurance companies have come up with bundle packages that incorporate a variety of different insurance covers.
If you’re considering one of these bundle package deals, it’s always important to know exactly what you need and then compare it to what’s on offer. We’ve compiled a list of the most basic insurances you should consider.
1. Workers’ Compensation
Any organisation with employees should, by Australian law, have Worker’s Compensation. This insurance covers employees in the event of workplace injury and work-related illness.
The cover takes care of their medical expenses and provides weekly living expenses during recovery. If an employee dies as a result of their injuries, a lump sum will pay out to their family.
2. Building and Content Insurance
Within Australian law, it’s generally up to the tenant of a building rather than its landlord to insure the commercial property the business operates from. This means you will most likely be responsible for insuring the building against various types of damage.
Here you’ll also need to consider coverage that protects your building contents such as tools, products and equipment. The coverage you need should cover both damage and theft. It’s important to identify the exclusions in this type of cover so that you can budget for unforeseen expenses. Or talk about additional options so you’re not left underinsured.
3. Product Liability
This type of insurance protects your business if you sell products in addition to the services you offer. For instance, this would cover creams, lotions, piercings and other products. Primarily, this insurance protects you in the event of these products causing injury through no fault of yours.
4. Business Interruption
If you have to temporarily close your tattoo parlour for an event you’re not normally covered for, then your business interruption will kick in. Here’s an example of how business insurance works:
A fire requires your parlour to shut for three months – the insurance will cover the rent, utilities and employee salaries for the time that your business is closed.
5. Medical Malpractice (Public Liability)
As the name suggests, medical malpractice protects you as the business owner against litigation if an employee or customer hurts themselves on your property. When considering this insurance, be sure to check the fine print.
Some aspects here will cover instances where a customer has an allergic reaction to the ink you use. Other aspects highlight issues related to sterility and hygiene. This might not be specific to all types of public liability insurance.
In many instances, this cover is called tattoo insurance and can also cover the following:
- Coverage for guest artists and independent contractors
- Protection for off-site work such as at festivals and art shows
- Cover for legal fees and settlements associated with any lawsuits related to customer dissatisfaction
6. Theft Insurance (Cash Protection)
As any tattoo parlour owner knows, there isn’t always time to take your daily takings to the bank. This can place your business at great risk. Theft insurance protects your hard earned cash from theft and loss.
Depending on the cover you have, your money could be protected on your business premises, your home or even as you transport it to the bank. With this insurance, there may be exclusions if the money is stolen outside of business hours or wasn’t stored in a safe. Since your business might operate outside of conventional business hours, it’s necessary to clarify this aspect with your broker, so your policy is relevant to your needs.
7. Body Piecer Liability Insurance
If your tattoo parlour also offers body piercings then this insurance is worth considering. Essentially, it’s very similar to tattoo insurance but the focus is piercings and their related equipment. It will also cover the employees doing the piercings.
Being presented with so many necessary insurances can leave a business owner feeling overwhelmed. The good news is your insurance broker will be able to find the right package that’s best suited to your specific shop or parlour.
With each insurance package, it’s crucial to have clarity of what is covered and what is excluded. Be sure to discuss the fine print with your broker. While insurance cover can often be costly, protecting yourself against the many things that could go wrong will be well worth the investment!