Having a cosmetic treatment done is meant to make you feel confident and enhance your features, however, if done wrong can make you feel quite the opposite. In 2017 over 28 thousand cosmetic surgeries were carried out in the Uk and this number has grown in the hundreds to current times. Over the past few years, the beauty industry has grown on a huge scale, from lip fillers, micro bladed eyebrows, and lots more treatments taking center stage.
Professional indemnity insurance is a type of liability insurance that is designed to protect businesses and individuals who provide a product or service to clients/third parties. Professional Indemnity Insurance is designed to protect your business and employees should a client allege that you have provided faulty or inadequate products or services. In this article, we will be focusing solely on professional indemnity insurance for the cosmetic industry.
Do I Need Professional Indemnity Insurance?
A lot of professions require professional indemnity insurance as part of their industry’s regulatory requirements. You are likely to need professional indemnity insurance if you provide advice, products, or services to your clients, provide designs to a client, want to protect yourself against allegations of mistakes or negligence, you work as a freelancer or are self-employed or your industry’s regulatory body requires you too. As Cosmetics are a professional service, businesses or self-employed practitioners should have professional indemnity insurance.
You can also choose to cover your business’s equipment, your stock, and your building/office should you have one. If your cosmetic company hires anyone, you will likely be legally required to have employers’ liability insurance too.
What Does Professional Indemnity Insurance Cover?
Professional Indemnity Insurance covers legal fees and compensation payments if a client loses out because of your service. Some examples of when Professional Indemnity Insurance can cover you include:
- If you provide bad advice
- If you make a mistake
- If you use copyright-protected content without any permission
- If you lose client data
- If you share confidential information
Professional Indemnity Insurance for the Cosmetic Industry
The cosmetic insurance industry is ever-changing with the new up and coming treatment always around the corner, because of this it is extremely important to keep your insurance up to date to cover any changes. If a client believes your cosmetic work/treatment to have caused them emotional or physical damage, they will file a claim against you.
Professional indemnity insurance is designed to protect you, your staff, and your business. In short, this cover will protect you against potential costs and expenses caused by the failure of cosmetic products, including the supply and alteration of the product.
Examples of Professional Indemnity Claims
This usually occurs when you make an error during treatment for a client such as burning, scarring, or making a mistake.
Loss of Documents or Data
When a business loses clients data, documents, or private information a claim can be made.
Breach of Confidentiality or Copyright
Accidentally using information that was once confidential without permission could also result in a claim being made.
The cover is provided for physical injury, mental injury, illness, disease, sickness, shock, or death arising from your business treatments, caused by your neglectful act or error.
The Cosmetic Industry
It takes a lot of skill to carry out a cosmetic procedure but like everyone in the world, people can make mistakes. It is so important to make sure that you, your staff, and your business are covered because if you are not it could be a very costly mistake that could have been very easily prevented.