Insurance Claims 

[00:00:00] Welcome to this week's episode of Beauty Babble. Today we're sharing true stories of things gone wrong. This is something we've wanted to talk about for a while and I know Suzanne, you're very passionate about this topic. So we wanted to bring it in a relatable way. So tell us a little bit more about what it means when things go wrong. Well, I think that sometimes we're thinking in this industry that, well, I'm the professional, I'm doing the protocols and the steps and getting clients to fill out forms and you're doing all the right things you think, and which is good, but nowhere do they really, really discuss the importance of your insurance. 

[00:00:45] And we know when you think, Oh God, it's insurance. Don't leave this conversation because we have examples. surprisingly, of what people will claim for. As you know, we talked about this, it's like a big rabbit hole that I went [00:01:00] down. But it's like, not necessarily do they sue you over it, but it still is an insurance claim. 

[00:01:07] So there's a difference. And sometimes we can relate it to your car insurance, right? So when you think of car insurance, you had an accident with someone, then the insurance policy plans of each Person right each people involved will now take that over and deal with it for you because you're covered with your insurance policy in our industry. 

[00:01:29] It's the same kind of process. However, it could be in the public. A person coming in, walking by or whatever it may be where they start to inquire and they want to put in a claim and it could lead to a lawsuit. Right. So it depends on your insurance policy. Provider and hopefully you have insurance. So why I'm passionate about this is we're not, we're not educated enough on this. 

[00:01:56] And unfortunately it's when things go wrong that [00:02:00] you learn what your insurance company will provide and help you with no difference than your car insurance or home insurance. Like you have a flood, you know, a sewer backup and you find out, oh my God, and it's not covered. That's Well, let's kick it off with a story so that it's like relatable to the industry. 

[00:02:20] So I think the first one you shared was, I'll just read it off. Yeah. This is from somebody on there. This is answer. Justanswer. com about Canadian law. So, we're based in Canada, and there is a little bit of a presumption that, you know, in Canada, people don't get sued as much as they do in the States. 

[00:02:40] But like you said, claims can happen without the full blown, like, lawsuit undergoing. And this is from a Canadian law site. So the first one is, I visited an esthetician in September 2020 and suffered a burn, now turned bruise, on my neck that is [00:03:00] noticeable and took about four to five weeks to heal. I have documented photos of the healing process and would like to seek legal advice since this bruise or mark has not completely healed. 

[00:03:11] And This person then proceeded to have a chat with a lawyer and she was told that she could seek out a personal injury lawyer to then pursue a claim. Correct? So Well, and the one thing that people need to understand that when you, when you get to that point, As you think for yourself, if you had a car accident, you went talk to a lawyer, they're now on your side to figure out how they can help you, right? 

[00:03:43] So this person, this lawyer said you went to these people and you trusted them as your experts. They harmed you and either they were negligent or they didn't know what they were doing, but they should know what they're doing if they're going to take a chance [00:04:00] with someone's body. So this is, this isn't fun and games here. 

[00:04:03] It gets really serious, right? So this, there's sites out there that will give free consultation to clients for claims. And or whether or not you take full action and do a you know, personal injury lawsuit idea and then your insurance company will be the person to guide you through these things. 

[00:04:23] But yeah, I mean, this is, this is happening. This was an Ontario. Right. And I think it's important to also point out like, yes, you can still have the form, the disclosure, they can sign, yeah, I recognize, like, it could be a treatment where a potential side effect is this, like, you would have, I don't know what this treatment was, there's no actual, I don't think that it talks about exactly what the treatment was. 

[00:04:46] Right. But I think there was another story that we talked about. Which with Linda Evangelista and yeah, she went to a met. She saw it like it was a medical We're assuming it was like a medical [00:05:00] Treatment. Yeah, it was and it was in the end in the States She again, we're making a couple assumptions where she probably got forms It was known that like 1 percent of people who get this treatment can have this particular reaction that she did. 

[00:05:16] So it's a known side effect. I'm sure it was part of the disclosure. She was still able to sue. So I think you can take all your precautions with your forms and you're informing even verbally, but if you don't have insurance at the end of the day, those don't do anything on their own, you need to have insurance. 

[00:05:35] Well, and this is the difference is that it protects you from having a personal lawsuit happen, right? Like little things that can happen, whether it's, you have a business out of your home, again, it's a little different, because then, as again, they'll, they'll help you understand this, but your home insurance will cover you to a certain degree, and some insurance will say, oh yeah, your home policy will cover you, it's like you need to dig deeper, maybe give them examples of [00:06:00] what could go wrong, so That you understand. 

[00:06:02] And then, like I said, you have the professional liability, which involves you. So this is quite different, right? So if I, let's define that really just really quick. So if you have general liability insurance, this also depends on, they're going to ask you, do you have employees? How big is your premise? 

[00:06:20] Are you on your own? Like if you have home insurance, what do they cover? And they're looking for the, I guess you could say, hopefully they're helping you figure out the holes that you have and how it's going to help you. If something happened, they could trip on your carpet all by themselves, and it's not even your fault or themselves just walking up your stairs or down your sidewalk, and they fall down. 

[00:06:44] You did everything you iced it, you know, de iced it, you did it, you know, gravel, all that and someone still falls. It's still a chance for a claim or a lawsuit, and I think people, you know, don't realize that they're, the risks that they take, right? So, and [00:07:00] even your anyway, we won't get into the auto insurance, but just so you understand, while homeowner insurance covers accidents and incidents that happen anywhere, but it can also help you as your business space as well. 

[00:07:11] So, it's understanding that, whereas the professional liability is a little bit different. It's excluding claims for professional acts. So this is when the service side of it, if you want to consider or even products, right? So the type of coverage can provide in many ways and forms. The common denominator is the expert expertise in the service you offer or specific training. 

[00:07:32] Professional liability can protect you from claims of financial loss, bodily injury, and many, many more things. So again, you need to dive into it. So when you look at this, To give you an example of how the law system will perceive this, so while the beauty industry isn't regulated in Canada, I think they're in Ontario sorry Manitoba has some licensing to it, right, or a licensing program to it. 

[00:07:59] There is [00:08:00] a journeyman for Saskatchewan, I think, but who knows, it could be changing anytime as well. So basically, The legal system can still hold you accountable for your actions. In the eyes of the court, you have the responsibility to perform your acts in a way that protects the public from injury. 

[00:08:17] If this is through your education, apprenticeship, or years of experience, the court will deem you a professional, and you will need professional liability insurance to respond to a claim. So, there's different insurances as well, so what is it actually covering you, right? So, you know, you and I have chatted about this, about products, like, and equipment. 

[00:08:38] You can go online and let's say the latest trend is some sort of mask. Okay, I'm just going to pick on the mask because we know what's out there and it looks cool. It's a jelly mask or whatever it may be and you fight and look for one. Your current product line doesn't happen. So you search online and you order it through. 

[00:08:57] I'm not going to pick on any sites generally, but [00:09:00] you're going to order it and you receive it. You don't know much about the product line. You haven't received professional education on it. What do you know about this product? Okay. And the adverse effects of this, this will be a fault of your own and you will probably have a lawsuit over it because you haven't done your due diligence to protect yourself and your clients. 

[00:09:22] And that's what's important to understand, right? The policy to include, you know, this one gives an example of hair, but you can take it into the aesthetics world as well. So if you're a hairstylist, and you may need to work with your insurance company to make sure the coverage of your policy includes damage done by color, Bleach and perms. 

[00:09:40] If you offer facials and chemical peels, ensure that these procedures are included in your general professional liability insurance. So it's not even the general liability, but it should be both. On that aspect, right? Ultimately, it's up to you to know what risks and needs your salon and spa faces so you can find the right [00:10:00] insurance to cover for coverage for all of it. 

[00:10:03] That way, when something goes wrong, you'll be able to rest easily knowing as much as possible has been taken care of. And it's really about you making sure you have everything in place, which is great, but doesn't mean it doesn't prevent you from getting a claim or a lawsuit. What it does is protect you financially, professionally from it, you can still have a claim. 

[00:10:28] There's an example of what was this one I'm going to share with you. Client fell off a styling stool. One of our clients posts, posted a sign in their hair salon. Oh, oh, this is from an insurance site. Pardon me. They gave examples of claims that they've had. So. The professional postage sign in the hair salon warning clients do not sit on the styling stools as they could be unstable. 

[00:10:56] Unfortunately, even with the visible warning sign, one of our clients [00:11:00] sat on one of the stools and subsequently fell off, injuring themselves during the fall. A month after the incident, the salon owner was served with a lawsuit. Fortunately, the salon owner had general liability insurance as part of their pro plan which meant the insurance company paid for the lawyer to defend the salon owner and paid the settlement of 15, 000 to the victim. 

[00:11:27] And this is, again, a Canadian site, too. This is Canadian, right? Here's another one. wax burn. One of our estheticians, so when I say one of ours, this is again an insurance company talking about us as their clients, our professionals, right? One of our esthetician clients with 15 years experience noticed shortly after starting a waxing procedure that the area was too tender to continue and advised the client they were going to discontinue the treatment. 

[00:11:53] The client was insistent that they wanted to continue with the waxing. Because the esthetician didn't want to upset their client. [00:12:00] They continued and the bikini wax. was completed as per client specifications. Unfortunately, the client The waxing client returned the next day, explained they had to go to the hospital and receive stitches as they had experienced bleeding after waxing procedure. 

[00:12:16] The client had retained a lawyer who alleged professional negligence. Fortunately, our stitching client was covered by the professional liability insurance and their general insurance. Their, their insurance company policy paid out almost 14, 000 in settlement fee. two years after the incident. This is what I hope people are listening to this. 

[00:12:41] I think this, this is a really good example because the esthetician knew she should stop the service. She wanted to stop the service, but she backed down from knowing what the right thing to do because of a persistent client. And we've all had those clients. [00:13:00] Absolutely. We've all had them. No, no, it's fine. 

[00:13:02] No, I normally react like this. I'll be fine. No, you have to stick to your guns in terms of like, Knowing what's what you should or shouldn't do like I think she originally she did the right thing but then got pressured and then continued a service against her better judgment. And the other thing like think back like you could even have them sign the paper and say, Okay, so you want me to continue you understand the risks. 

[00:13:27] Right. But, That that part that I had mentioned where is it in the eyes of the court, you have a responsibility to perform your acts in a way that protects the public from injury that includes refusing service. Yeah, you still have. Even if they are like, no, I will take all the risks. No, I, you go do it with somebody else then because I'm not taking that risk. 

[00:13:52] Exactly. Right. And it's like, it's kind of like a doctor, like we're, we're not doctors, but doctors are sworn to do no harm. So even if [00:14:00] a person goes up to them and they're like, no, no, no, I really want this, if it hurts you, they're not going to do it, no matter how much you want it. Same thing. You can't hurt people. 

[00:14:08] And I think I liked how you brought that up, that we don't want to upset our client. Right. And I get that. But in the end, like you have to find your verbiage, your way of speaking to people to help them understand you're doing this to protect them. Yeah. Right. And it's a hard one. And if you settle to the client, here's another example I want to share with you again. 

[00:14:29] Why would you listen to your client over this when you're the professional? And maybe it's. Lack of confidence. I'm not too sure what it is. Your training could be training. Another example is where one of our clients had a new customer wanting eyebrow and lip wax. The customer had advised that she had very, very sensitive skin. 

[00:14:48] The experience has Titian used a very pliable wax warmer due to client sensitive skin. However, the client asked for the wax to be at a higher temperature as they didn't think the [00:15:00] color cooler wax would be effective. What does the person know? Anyways, they ask Titian to complete the service and see the client's specifications. 

[00:15:08] The next day, however, the client called to report she had been burned by the wax and is seeking compensation. Fortunately, the client has professional liability insurance and covered through, which means she had peace of mind that this situation would be handled for her through the insurance company. 

[00:15:24] Again, that's a lawsuit happening there. Their client doesn't know. They're not the trained professional. What if they were like, what if as an addition, I came to you said, Oh, drain, like this isn't, this still isn't warm enough for me. Like, you're still, you're still the person you're the professional. You have to go by that. 

[00:15:41] Right. I mean, and then there's other things that could happen. Like, you know there was one, what was it? Do the salon door. Cause that one's. Yeah, that's what I'm going to right now. I know, I know. It was a rabbit hole. I went down and I couldn't stop. One of our clients owned a spa in a single step up, [00:16:00] leading from the reception area towards the treatment room. 

[00:16:03] Unfortunately, even though the step was clearly marked, within the space of three months, two clients had tripped and fallen on the step. In both incidents, the clients refused help at the time of the fall. However, a few months later, our clients received notice from both of their lawyers, notifying them the lawsuits were being filed. 

[00:16:23] Both of these claims were settled through your, the insurance company, which helped which includes up to 2 million of liability coverage to give salon owners peace of mind in these situations. So again, you can do everything right. Think you got it covered? Sign papers, put sign up, all these things. 

[00:16:46] They can still sue, right? It's like, and I think we're, we're not given enough of this information during courses and trainings that we take and certification doesn't matter if it's dermaplaning, waxing, you buy a [00:17:00] new machine, you know, it's like you upgrade your microneedling, your nano needle or whatever it may be. 

[00:17:06] It's like, are you in this one? I always say when people come in and ask me questions about these things, I said, the best advice I can give you is before you purchase this. Will your insurance company cover you professionally and general liability? And this is why we talk about this, right? Like I got another one. 

[00:17:25] I mean, we can carry on. These are about clients, but other things can go wrong, which protect you. But one more for you. One more. One of our esthetician clients purchased a new bed for their treatment room. Unfortunately, the new bed collapsed while a client was receiving treatment. Due to the injuries received during the fall, the client went for physiotherapy to assist with the healing process. 

[00:17:45] A few weeks after the incident, the esthetician received a notice from the client's lawyer indicating their intent to sue as a result of injury. Fortunately for the esthetician, she had insurance, She, he, pardon me had [00:18:00] insurance, including legal assistance and insurance company lawyers handled the situation for this person, for this professional. 

[00:18:07] It took two years to negotiate the settlement of 30, 000, which was paid out by the insurance company to the person that filed. Imagine, imagine having to do that, like not having insurance and having to deal with the legal fees. They go after you personally, they go after you personally. Exactly, like it, it is, it's, it's a lot. 

[00:18:29] People always think, I always think, it's not going to happen to me. I, you know, why would I need it? Especially if you're doing services out of your house. I'm like, I'm just doing some services out of my house. Still important to have that separation in your, like, business or, you know insurance, professional insurance and your home insurance as well, because it can cover you for that, like you said earlier. 

[00:18:51] Like in your home insurance, for example, because there's a lot of self entrepreneurs out there. Right. And they're doing a lot of this is out of the homes now, which is fine. It's good. [00:19:00] However, your home insurance is now involved as well. So let's say you had a water main break or, you know, a backup, a sewer or whatever. 

[00:19:07] And it, and it damaged your room or you can't bring clients in there anymore. Right. So you lose income during that time. Your insurance will cover you. Yeah, right. So if you have the proper amount, like, you know, anything could happen. And I don't think we realize what, you know, 300, 800 bucks a year to do for you. 

[00:19:31] And the stress of it. I mean, there's a couple of people I know that would probably wouldn't even mind coming on the podcast with us and talk about their scenarios. But. The stress of it, even though you're covered two years of this, like you're involved in this and you're going to have to give your documentations and then you're going to respond and it's back and forth. 

[00:19:53] I don't know if you've ever been through any kind of an insurance claim or a lawsuit, but it takes a long time. [00:20:00] So, you know, I haven't, but I think too, like I can think about like the, the toll it would take on your mental health. That's what I'm saying. Even with the insurance. Mm. It would be a lot to bear. 

[00:20:11] I could just, Ima like you question everything, but imagine if you didn't. Like, it's just such a small price to pay. We'd a, I think we should dis we don't work for insurance companies. disclaimer here. We're not pedaling any insurance. Oh yeah. No, no. It's really important to like, to have. Professional insurance and a check up on it like if you're improving your if you're upgrading your services and you're learning new skills, you could be legitimately certified in a new skill but if you haven't checked that that is covered under your insurance. 

[00:20:47] That's also something to always keep up with as well. Right. You can't just bring in a new product or equipment. I mean, general things, a cleanser, whatever, but I'm talking like a new [00:21:00] treatment or a new machine or a new machine. Yeah, that's like, you just want to make sure things are covered. And if you're not sure, what I used to do is I asked my insurance company, I gave him scenarios. 

[00:21:09] Okay. What if this happened and you want to keep it, it sounds silly, but the, the silliest thing, right. I remember sometimes stop being like, Oh, Suzanne, it's a screw loose. On the handle of the chair or whatever, like the public where they sat, I go, yeah, and then all I need is someone to scratch their arm on the screw and then I get sued and they thought I was being ridiculous. 

[00:21:31] Well, here's the proof. Yeah. It's out there. Yeah. People will cause a claim for a thousand bucks in their pocket and now it's a claim on your insurance, which means your insurance is now, even though they say it doesn't go up. How do you, why do you think insurance has been going up in our cars? Let's say car accidents, home insurance, like hail damage or water, you know, like all these things, we are all paying for this. 

[00:21:55] So again, it's, it's kind of the same concept when it comes to [00:22:00] this industry as well. So you just want to make sure that you are being trained. And understand. So I'm not like, I always say knowledge is power. So the more, you know, or maybe you have a few people in your world, other professionals, and you can message them, Hey, do you know of anything? 

[00:22:16] Have you heard any things? There's something I'm not thinking about. I never considered. Right. So that's why I tried to bring up a few scenarios. You know, like you could be working in for someone else, you want to ask him, how does the insurance cover me? You want to make sure, because guess what? 

[00:22:33] They can come after you personally as well. Right. So you just want to know how they cover you, especially if you're doing contract work, right. You're a contractor. You, you are considered yourself business. You're not covered to the full degree. You're under their umbrella per se, because you're in their roof under their roof, but you still need your own professional insurance and general liability. 

[00:22:59] And if maybe I'm [00:23:00] wrong, But I think you should ask. It is important to ask. I had my, any contractors I had, they had to provide me with their insurance. Here's an example, maybe it's better for people to understand. Renters. Right. You're gonna go rent a place. The the walls and the roof, you know, generally are covered inside your, your couches, your clothing, your jewelry is not covered. 

[00:23:26] So you have your occupancy insurance, right? Same applies with this idea. Just so people understand, like, you still have something. It's not just a scam that people want your money. You just have to find the right insurance. And I tell you, some of the stories I've heard that they've shared, some people have shared, professionals that thank God for my insurance company. 

[00:23:46] They helped me so much. They guided me right through the whole claim. Mm hmm. Because it still happened, even though everything was done correctly. I think a lot of times we might not hear about these stories too, [00:24:00] unless you go down the rabbit hole of searching for them, because they don't go into full blown lawsuits, they're just settled with your insurance company. 

[00:24:07] So they're not always publicly, you know, people don't always talk about this stuff, but I think it happens more often than we'd like to, to think. I'm sure everybody knows at least one person this has happened to, but customer is claiming on one here about after having I believe it was Paul Slate laser IPL damage. 

[00:24:28] Again, if you're working your medical esthetician, which are is the hot topic for a lot of people wanting to go into that field, which is great. But on here it was intense pulse light. And apparently they were never told that they could scar from this. Didn't tell them side effects. This is why forms are important and they sign and you go through it with them as well. 

[00:24:52] Right. And it's dated time. Right. So apparently because there there was none of that done. Of course, there's a lawsuit, very strong [00:25:00] case. And lawyers basically saying, Yes, you have a very strong case. You've been permanently damaged by someone who never even told you that these were the possible risks and side effects. 

[00:25:11] You should be consulting with a personal injury lawyer right away. Personal injury lawyer will likely agree to take your case. And fees basis, which means that you would not have to pay anything up front. You would only pay if you win, and then the lawyer would take their percentage. And the person's like, thank you very much. 

[00:25:32] I'm contacting one right away. So, you know, it's, it's out there like these, then this is Canada. And like you said, people, we assume for a long time that, Oh, but we're not like the States. Listen, the amount of assurances that I've heard about policies and everything is everywhere. And like I said, if you, if anyone has more questions, you know, I would advise you just talk to your insurance company right away talk to your [00:26:00] colleagues out there, other professionals, see what they've been through you know, Yeah, ask what insurance company they use too, right? 

[00:26:05] Exactly. And yeah, and just keep asking questions and they're, that's their job. They're going to tell you everything. And because they do, there's a few beauty insurance Companies designate to this so they know the industry, right? They know it. So they know what types of things need covered. They're going to ask you about all your services, all your equipment. 

[00:26:25] What do you do? So, you know, if you're doing, I don't know, some extreme peel, are you covered? Right. And they'll want to know the product. They'll want to know the ingredients. You know, and because, you know, the FDA in Canada has banned an ingredient, but you can still get your hands on it. Yeah. Be careful. 

[00:26:45] Be very, very careful. Yes. Yeah. If anyone's out there that's had a story they want to share, yes, I want to come on. We would love, we should do that one day, just have like an open [00:27:00] mic session and talk about these things because they're real, you know, it's unfortunate and it's like I said, it's so stressful. 

[00:27:06] Like you mentioned, Doreen, it's a stressful thing to go through, even when you do have insurance coverage. So I'm going to hear you life situations, it helps the person. Like relate to see that. Oh, wow. Yes. You know, like we can, we can talk about it all we want, but if you want to come and share a story, we are more, more than happy to have you. 

[00:27:31] Oh, and that's why I like, you know, ask your insurance company about before and after pictures and you know, what was the home recommendation after your treatment and that's everything waxing. You know, lasers peels lash lift, like. Everything matters. So make sure you have before treatment, during treatment and after treatment, not that you need all the forms because a lot of it will generalize and help you, but specific to treatment [00:28:00] itself, like brow lamination can go wrong. 

[00:28:03] And keeping notes for yourself, too, is very important. And like one, one particular professional I know, she says, Thank God I take before and after pictures. Because the immediately after picture, the insurance company could see, No way. She did something when she went home because there's no inflammation. 

[00:28:28] So they know their stuff, right? They can help you with it. Actually, I didn't do a follow up. I should find out what happened with that. But this person was after a claim and there's people that just do that. Just sorry, guys, to tell you this. That's what they do. They go place to place and they do something. 

[00:28:44] for tuning in. What's a, that's a grand in their pocket. You know, how hard do you work to keep a grand in your account? Right? To make that 000. And it's not going to be a thousand bucks. Probably about a minimum of five grand, but insurance company, if you're listening, [00:29:00] help us understand this. We should have an insurance company on. Yeah. Yeah. Awesome. Well, I think this was A topic we've been wanting to have, and I'm really glad that we did because it's, it's important. And if anyone has stories they want to share with us, we're open to hearing all the stories. And yeah, we'll be back with another episode next week.