Who needs Cosmetics Insurance?
Cosmetics are designed to be used on the body, product liability insurance for a cosmetic business is essential, it protects against allegations that a product has caused a loss, damage or injury to the user of the products. Liability insurance will defend the business and pay any legal costs and compensation to the policy indemnity limit.
A typical example might be that s skincare product has caused a reaction, or that the product may have done other damage, and whilst the allegations may be unfounded the costs to defend could be enormous.
Any business that imports, manufactures, distributes or even exports cosmetics insurance is an essential part of business defences. Speak to Real Insurance Group today about your requirements, you can speak with experienced and knowledgeable brokers that understand how a business ticks – 0330 058 0260
What types of cover might a Cosmetics Business need?
Business Interruption Insurance
Providing a financial cushion to your business should you have a material loss at the premises it is designed to replace the reduction in profits whilst the business is rebuilt. The policy will pay for a chosen period usually from 12 to 36 months or longer periods can be available.
Cover such as business interruption doesn’t just end at your premises, should one of your main suppliers have a loss such as a fire at their production site causing a shortage of essential ingredients you use in your cosmetics production process for instance, this could have a knock-on effect of interrupting your business causing a reduction in turnover. This is just one extension a cosmetics business might benefit from.
Goods in Transit Insurance
Whether you manufacture, wholesale or distribute cosmetic products you will need to get them to your customers. The products are valuable items and need protection right to the point of delivery and if anything happens on the journey, without adequate insurance could leave you out of pocket.
You may have your van or fleet of vans or you might use a courier service to deliver, a Goods in Transit insurance policy will provide your products with protection.
Computers & Equipment
Most businesses use technology to some extent, for many, the use of computers, servers and networks are essential to the running of the business, whether that is just communication right through to computerised processing and manufacture. For most small businesses this can be incorporated into the main policy, for larger businesses a bespoke computer insurance policy could be more beneficial.
Liability Insurance for Cosmetics Businesses.
Whilst Product Liability is essential to any product-based business Public Liability insurance, usually twinned with Products cover is essential it is the cornerstone of any business protection. Just like product liability, public liability insurance for a cosmetics business protects against allegations of loss, damage or injury and will pay for the defence and any compensation awards that may be payable up to the limit of the policy. This is referred to a limit of indemnity which can start at £1m and increase through £2m, £5m and upwards.
Employee staff in your business? Employers Liability insurance is not just essential its also a statutory requirement, protecting your business against claims from employees.
Exporting Cosmetics and Skin Care Products?
If you are selling your goods overseas there might be a few things that need to be considered.
Whilst you might consider using a freight forwarder for insurance, often it can be much more cost-effective to have your own Marine Insurance Policy, this can cover your products from leaving your premises right up until the receipt by your customer to most places in the world (there are several exceptions).
Liability insurance can differ in many parts of the world too, the USA, for instance, is a prime example, advice should be sought before agreeing to sell your products in that part of the world.
At Real Insurance we provide product liability for USA exporters as well as Amazon Sellers.
Directors & Officers Liability Insurance
Protecting a potential wrongful act committed by a Director or officer of the company usually forms part of a Management Risks Insurance package where Employment protection can also be included.
Who would benefit from a Cosmetics Insurance Policy?
The following are just a few product areas of this diverse sector that we can cover on a specialist cosmetics insurance policy.
Perfumes and Fragrances
Skin Care Products
Hair Care Products
Facial Products and Make-up
Applicators and Specialist Equipment