For every action there is a consequence and in the beauty industry with the use of more machinery, accidents will happen.

The frenetic season is approaching with men and women wanting to have tans, hairless faces and bodies and minimising wrinkles. Most salons will have full books with minimal downtime. Limit exposure to incidents by upskilling your staff. Staff need to know procedures to follow, in the event of the unexpected happening.

If a client's skin or body is damaged or the client 'feels' it is damaged, please take the following steps -

Inform The Insurance Brokers immediately

Inform the client to lodge a claim with ACC immediately

Inform the client to go to her pharmacist/doctor/medical centre

Please be aware that for accidents of this nature, known as Personal Injury by Accident, ACC will pay out for medical treatment and loss of income apart from the first week. As ACC only pay 80% of loss of income, you may be asked by the client to pay the other 20%. However, if you employ a nurse to do procedures such as Botox, this is classed as Cosmetic Surgery, and treatment will not be covered by ACC.

You must never admit liability as the insurance company will not accept the claim.

The client has the right to take this further by applying to the District Court for costs for further damages. The chances of this succeeding are minimal. If ACC has accepted the claim, then the court could see a further claim for costs as mischievous and the action could be struck out. Beauty Salons should by now have Statutory Liability and Professional Indemnity insurances in place. The reason is that in the event of a claim you will have a top insurance lawyer who will write the letters to the client or their lawyer to minimise the fallout.

The words on your policy saying "Hairdressers Extension" are not Statutory Liability or Professional Indemnity. They are a part of public liability and will not protect you in the event of a claim under the Fair Trading Act. Statutory Liability covers you for fines and expenses under any Act of NZ Parliament that is in effect at the time of your claiming.

This year has been a year of claims under Statutory Liability as more clients become aware of their 'rights'. The reason you must inform TIB immediately is that Professional Indemnity claims must be notified to the insurance company once there is a possibility not a probability of a claim. The insurance company will do everything in their power to limit your exposure.

Please read the small print on your policy. Read the exclusions in the policy wording because that could be the difference between safeguarding your business income in the event of a claim or your business being put at risk.