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Hands up if you read the small print. Whether it’s agreeing to terms and conditions or accepting cookie notifications, many of us are guilty of not fully reading the wording before clicking ‘accept’ or signing on the dotted line. But when it comes to your insurance, you need to make sure you read everything thoroughly. The last thing you want is to get caught out because you haven't read and understood the terms of your policy properly.
Our claims team has seen this happen time and again. Here, Emma Bracchi, our Senior Client Services Technician, shares seven common areas where people come unstuck and gives advice on the simple steps you can take to keep you compliant with your policy and avoid any unnecessary headaches should a claim be made against you.
Proper documentation is crucial when it comes to insurance claims. Yet many people fail to maintain up-to-date records or take necessary photographs. For example, did you know that some policies require that before and after photos are taken for all injectable treatments? Make sure you familiarise yourself with your policy conditions (see below). Without these, proving the extent of a loss can be challenging. You should keep patient records and data safe and save them for 10 years so that you have evidence if a claim is made in the future.
Insurance policies contain a lot of in depth information, therefore it is essential for policyholders to take the time to read them thoroughly. If you neglect to read the detail of your policy this can lead to misunderstandings about what is covered and what is not. It is essential to read and understand the terms of your policy completely, and if needed, seek clarification from your insurer on any points that are unclear.
“When people take out a policy, they often don’t read the policy wording in full. But it is really important that you read the conditions. A lot of the claims we get that are not covered are where the conditions haven’t been met. The policywording sets out everything from record keeping to patch tests, and when it comes down to certain types of laser treatments, there are conditions around minors, etc.”
- Emma Bracchi, Senior Client Services Technician
Making sure you notify your insurer of any claims or potential claims is crucial because delays can result in claims being denied. As soon as an incident occurs or you become aware of a potential issue, you should notify your insurer immediately. For example, if a patient expresses dissatisfaction with treatment, informing your insurer early can help manage the situation more effectively.
“Practitioners often don’t tell us something has happened until they receive a letter of claim. But with our terms and conditions, they need to notify us as soon as possible”, explains Emma. “Even if it’s a complaint they don’t think is justified, they need to tell us at the first point. If it is because a patient is not happy with the results, we can help them in-house. Anything service-related we can’t help with, and if it something that has to do with injury or legal action, we would have to refer it on, but the key thing is letting us know at the earliest opportunity.”
Life changes, and so should your insurance policy. Whether you’ve added new treatments, moved to a new location, employed new staff or made other significant changes, it’s important to update your policy accordingly. Failure to amend or update your insurance policy to reflect changes can result in underinsurance or lack of coverage when you need it most.
“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 performed in the past.”
Our separate article on amending and updating your insurance policy covers the key areas to consider for policy updates.
Underinsurance occurs when the coverage limits of your policy are insufficient to cover the full value of your assets or potential liabilities. This can happen if policies are not regularly reviewed and updated. Conduct periodic reviews of your coverage to make sure that it remains adequate for your needs and that your policy limits are in line with the current value of your assets .
Read our article on underinsurance to understand what underinsurance is and how to avoid it.
Any significant changes that could affect the terms of your insurance policy must be communicated to your insurer as soon as possible. This includes changes in the use of insured property, new business activities, or changes in the health condition of the insured person. Not disclosing these changes can lead to claims being denied or policies being voided.
Make sure you have the correct type of insurance for your needs, whether private or corporate. Corporate policies often have more complex terms and may cover different risks compared to private policies. Understanding these differences and making sure that you have the right type of policy in place for the specific needs of your business is crucial. For example, a corporate policy may exclude claims brought by related parties, which might not be the case in private policies .
By being aware of these common pitfalls, you can make sure you are covered, and if a claim is made against you, things can go more smoothly. Check out our article on why aesthetic practitioners should be cautious when treating their staff for more relevant advice. You may also be interested in reading our articles on complaints handling and 7 reasons why you need cosmetic insurance.
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