1. Inadequate Coverage for Claims: Underinsurance may result in insufficient funds to cover compensation for injuries or adverse reactions caused by treatments, leaving practitioners professionally liable.
2. Legal and Regulatory Repercussions: Failing to meet minimum insurance requirements for certain treatments (e.g., cosmetic injectables, non-surgical treatments or laser treatments) can lead to fines, legal action, or suspension of licences from regulatory bodies.
3. Reputation Damage: A high-profile claim that isn’t fully covered could harm a beauty business’s reputation, causing clients to lose trust in the business’s professionalism and safety standards.
4. Financial Instability: Without full coverage, businesses may face out-of-pocket expenses to resolve claims or settle lawsuits, potentially resulting in bankruptcy or closure, especially for smaller or independent beauty salons/clinics.
5. Limited Access to Defence Resources: Insufficient malpractice cover may reduce access to legal defence or expert witnesses, leading to weaker legal positions in the event of a lawsuit, further increasing the risk of loss.
Proper coverage is critical in the beauty industry where medical procedures and high-risk treatments are becoming increasingly common. If you have any concerns that you may be underinsured, please feel free to contact Beauty Insured who will be happy to assist.