Making an insurance claim can be stressful ‒ but it doesn’t need to be. In the aftermath of a disastrous event, we understand how important it is to get your salon back up and running as quickly as possible.
COMMON CLAIMS
Some of the common claims experienced by salons owners can include everything from the effects of a fire on your shop, theft at your premises, injuries caused to clients by negligent business practices and mistakes that are made when providing your professional treatments or services.
Take the example of an experienced laser therapist, who performed IPL laser treatment on a regular client to remove pigmentation on her face.
Despite carrying out a patch test prior to the treatment with no side effects, the client ended up suffering a severe reaction that left burns and scarring on her forehead.
Unfortunately, her client lodged a claim, and it was held that she was unable to lead a normal life due to suffering severe psychological trauma as a result of the scarring. The matter was settled for a whopping $76,000, including defence costs which were paid by her Professional Indemnity insurer.
This example may seem extreme, but unfortunately these kinds of incidents are more common than you think.
If the worst does happen to your beauty business, simply follow these simple tips to help make the claims process as stress-free and time-efficient as possible.
BE PREPARED
There are a few things you can do upfront to be prepared and make the whole claims process a bit easier, while also helping you ensure you have the right cover for your salon.
Understand the Nitty Gritty
If you find the thought of sitting down to read your insurance policy’s Policy Wording or Product Disclosure Statement (aka PDS) from beginning to end daunting, don’t worry, you’re not alone! At times it can seem difficult to follow, but it doesn’t need to be complicated.
If you are unsure what your policy covers you for, jump on the phone to your insurance agent or provider.
Having a chat to a real-life consultant will help to explain all the important things about your cover that you need to know, without the jargon.
Understanding what you are covered for and reviewing your policy is something that everyone should do regularly to ensure come claim time – you have the right cover.
Some important things to check are:
• What events does your policy cover you for?
• What are the exclusions?
• How much is your excess?
• How much are you covered for?
• Are there any sub-limits?
• Do any waiting periods apply?
If you are not covered for events that may impact your business, talk to your provider about extending your cover or purchasing additional policies.
While you will not typically be able to buy insurance to cover an incident that has already occurred, having the right insurance protection moving forward should give peace of mind.
WHEN DISASTER STRIKES
Call for Help
When you find yourself in the unfortunate situation of needing to make a claim, you should contact your insurance agency to report the incident as soon as reasonably possible. You may be feeling a bit overwhelmed during this time, so to make things a bit easier, write down the key facts about the incident.
This will help to make the information you provide more accurate and easier to explain to your insurer.
Things to jot down whilst the details are fresh in your mind:
• The time and date the incident occurred
• Where the incident happened
• What happened? The more details the better
• Details of any people or assets that were affected
• Anything you may have done to try and minimise the loss
• If there were any witnesses, ask for their account of the details of the event and write it down (or have them do so)
It is also a good idea to take photos of the damage where you can.
Keep a Paper trail
The claims process will inevitably require some forms to be completed which will involve recording facts and details about the incident and possibly a police statement.
However, if you follow the steps above you will already have a good account of the details that are required.
As mentioned earlier, it is important to keep copies of documentation, receipts etc to help speed up the claims process, by providing these documents quickly, you can minimise the chance of delays from the insurer.
Open for business
Once your claim has been approved and it’s back to business as usual, take the time to review your policy.
Going through a claims experience will give you a great insight into what you are covered for, the limits of your policy, excesses and waiting periods.
Take the time to reflect and ensure that your policy is covering you for the right things and that you have enough cover in place should another incident occur.
If you want to know more about the insurance options and the claims experience that BizCover can offer, find out more here.
* The information provided is general only and should not be relied upon as advice. As with any insurance, cover will be subject to the terms, conditions and exclusions contained in the policy wording. BizCover™ Pty Ltd (ABN 68 127 707 975; AFSL 501769). © 2019 BizCover