During the summer holidays my vehicle was hit by another car on a roundabout. The roundabout had two lanes and the van crossed slightly into my lane hitting my car at the bottom of the front left hand side panel and causing some damage. The other driver immediately accused me of wrong doing, which is pretty standard practice. After I showed him my damage and the slight damage on his van, he admitted liability.

However, when the driver put his claim in, he stated the opposite, and put the damage on his van at a different place to prove his innocence. No insurance companies involved will fight this type of case without photographic evidence or independent witnesses. The conclusion was that both of us retained our no claims bonus but each had to pay our own excess. The only straightforward liability incident now is if someone hits you on the back bumper or rear of your car or you hit a third party on the back bumper or rear of their car.

After this experience, I will use my cellphone to photograph an incident. However, writing down the third party's name, insurance company, phone number and car make and registration number takes time and it is easy to forget to photograph the incident.

Several months ago, one of my clients had severe migraines and the doctor advised bed rest for four weeks. The client had Business Accident and Sickness cover (the essential insurance on the market for the self-employed beauty therapist, owner or key employee) with 7 days excess at $1,000 per week. However, the insurance company refused the claim because the doctor had written the client had been depressed and it was seen as a psychological illness not a physical illness. Therefore, our company had to prove that the migraines were as a result of a physical illness, which the insurance company accepted after the doctor wrote a letter of confirmation, and the happy client was paid out the full $3,000 (not taxed as it is not a life product).

There are three important rules to remember when you have an incident with your business or privately.

1. Ring your insurance broker immediately there is an incident. This is crucial if a client threatens you with legal action if you do not give a refund for services received. A reputable insurance broking company (member of IBANZ) should be able to be contacted 24 hours per day. There should be an after hours number on the phone message. Remember, on weekends insurance companies expect you to take responsible steps to limit the damage to your business or private assets. Do NOT employ any tradesmen without the permission of the insurance company.

2. Turn off the power if water or fire are involved.

3. Ring your clients/suppliers/fire station/police/council, etc.

Service in the beauty industry is about looking after the client's needs. A client arrives at a salon, is greeted warmly, a consultation occurs, and treatment is given. A client is served.

Ensure that you, the client, are being served by the policies you have in place, to meet any sudden, unexpected incident.