Amending and updating your insurance policy

Life changes, and so should your insurance policy. Whether you’ve added new treatments to your offerings, moved to a new location, hired additional staff, or made other significant changes, it’s crucial to update your insurance policy to reflect these developments. Failing to do so can leave you vulnerable to underinsurance or even result in denied claims when you need coverage the most.

In our recent article on avoiding insurance risks, we identified failing to update and amend policies as one of the seven key areas where people come unstuck.

"We have seen claims in the past where the involved practitioner has not been listed on the policy. When your policy renews, it is essential to review the treatments and practitioners listed. For example, We had a situation where a practitioner was employed for over two years but never added to the policy.  The policy had been renewed twice, but the policyholder did not inform us that the person needed to be added. When a claim came in for this treating practitioner, cover was declined by insurers as we had no records of this practitioner ever being listed. This meant not only this particular claim being refused, but also exposed the clinic to no cover for any future claims that may potentially come in for that practitioner from any treatments preformed in the past.”

- Emma Bracchi, Hamilton Fraser’s Senior Client Services Technician

Key areas to consider for policy updates

1. Staff changes: If you’ve hired new practitioners or staff members, you need to inform your insurer immediately. These individuals must be added to your policy to make sure they are covered in the event of a claim. Conversely, if someone leaves, they should be removed from the policy or placed under "run-off cover”. Nicola Bowtell, Hamilton Fraser’s Account Executive (Healthcare), explains, “If anyone leaves the business, just give us a call or contact us, and then we can get them removed from the policy or place them on something called run-off cover, which will protect them in the event of a claim arising for a procedure previously performed.”
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2. New treatments and equipment: Introducing new treatments or switching to new equipment without updating your policy can lead to coverage issues. While Hamilton Fraser no longer requires you to list every laser machine (except laser lipolysis) or brand-specific dermal filler, any significant changes in treatment types should be communicated. “We've seen many cases where claims have been repudiated where the treatment or the procedure is not listed”, says Nicola.
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3. Turnover adjustments: A significant increase in your turnover should be reported, as it impacts your coverage. If your turnover exceeds what is stated in your policy, your claims could be denied or reduced. Accurate turnover reporting means that your policy accurately reflects your business's current state. Underreporting turnover can lead to repudiated claims, leaving you with inadequate coverage.
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4. Product changes: If you switch to new products or devices, especially in rapidly evolving fields like aesthetics, it’s important to check with Hamilton Fraser whether these changes affect your coverage. While broad categories like "laser machines" or "dermal fillers" are generally covered, some specific products might need to be listed or could incur additional premiums. This is particularly important for treatments in sensitive areas, like genital procedures, which may require additional coverage. Nicola elaborates, “If you are covered for dermal fillers but you want to start using fillers in the intimate area – that's not the same. In that case, you would need to call us. On the schedule itself, it states you can perform anywhere on the body, excluding the genital area. We can add it to policies, but we increase the excess for genital procedures.” The same is true if you are looking to add additional services, such as menopause support. Hamilton Fraser currently covers bioidentical hormone replacement therapy (BHRT) and has partnered with Menopause in Aesthetics to expand further into these growing areas of interest to the sector.
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5. Investigations: If your governing body, such as the Nursing and Midwifery Council (NMC), General Medical Council (GMC), or General Dental Council (GDC), is investigating you for any reason or someone has made a complaint or allegation against you, you should inform your insurer. Nicola says, “If there are any sort of GMC, GDC, or NMC investigations, contact us, and we will just note them on the file. Any changes, just call us.”

The consequences of not updating your policy

Neglecting to update your insurance policy can have severe consequences. For instance, if you’re underinsured, meaning your equipment or turnover is not fully covered, any claim you make may only be partially paid, leaving you to cover the rest out of pocket. Similarly, if a practitioner who is not listed on the policy performs a procedure that results in a claim, that claim could be rejected entirely.

Failing to update your insurance policy can have significant financial consequences. Nicola points out that underinsurance is a common issue: “We’ve seen cases where businesses have equipment insured for £40,000, but in reality, their contents are worth £500,000. In such instances, underinsurance becomes a significant issue, and it’s crucial to regularly review and adjust coverage to reflect the actual value of assets.”

In cases where claims are made, but the necessary updates to the policy have not been communicated, these claims might be rejected entirely, leaving you vulnerable. This can be particularly frustrating when it could have been avoided with a simple notification to your insurer. For more information on underinsurance, read our separate article, ‘Understanding underinsurance’.

How Hamilton Fraser supports its clients in amending and updating policies

Hamilton Fraser strives to support its clients by making the process of updating policies as straightforward as possible. Nicola emphasises the importance of communication: “We try to remind clients throughout the year, but it's crucial that they proactively inform us of any changes. It's for their benefit, not ours.”

To sum up

Regularly reviewing and updating your insurance policy with Hamilton Fraser is essential to make sure that all aspects of your business are adequately covered. Whether it’s new treatments, staff changes, or turnover adjustments, keeping your policy current will protect you from potential gaps in coverage and make sure you have the protection you need when it matters most. A simple call today could save you from significant financial loss in the future.

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