As our founder and CEO Eddie Hooker reflected, 2024 was a “year of challenges but also significant achievements and innovation.” We saw new treatments in the regenerative aesthetics category come to the fore, as well as aesthetic clinics expanding into areas like menopause, wellness and longevity. At the same time, the aesthetics sector faced challenges, including economic pressures as a result of the cost of living crisis and frustrations around the Government’s response to the licensing consultation not coming through before the close of the year.
The industry has also been in the spotlight for negative reasons, such as the complications arising from Brazilian Butt Lifts (BBLs), including the first UK reported fatality.
With all this going on, it naturally follows that the world of aesthetics insurance has seen new challenges and trends emerge. While overall reportable claims were down in 2024 from 2023 (in 2023, we had 264 reportable claims and 89 dissatisfactions, and in 2024, we had 250 reportable claims and 66 dissatisfactions), the legal costs of defending these claims are on the rise.
While we can never completely prevent a claim, or have any control over what the legal costs are, understanding the key risks and implementing proactive measures is essential.
At Hamilton Fraser, we emphasise not just claims management but also proactive support to help clients minimise unnecessary claim records on their policies.
Here’s what’s happening behind the scenes, our top tips, and what makes our service stand out.
There are two broad categories of claims in aesthetics: those related to treatments/patient complaints and business related claims related to causes such as a fire, flood, denial of access, or a pandemic.
In terms of treatment complaints, you have dissatisfactions and reportable claims.
The table below is a helpful tool in establishing the type of complaint you're facing:
Whatever the nature of the complaint, we will be happy to discuss potential scenarios with you and advise on the best course of action if you may need to make a claim.
In this article, we are focussing on treatment/patient related complaints that have led to reportable claims.
“If a patient has said they are dissatisfied with the results of treatment, but there are no allegations of bodily injury, negligence or financial loss, and they have not approached a solicitor, then this would not trigger the formal claims process”,
- explains Senior Client Services Technician, Emma Bracchi.
“A formal claim is considered to be an allegation of bodily injury, negligence or financial loss, which can be received directly from your patient or via a third party solicitor.”
In 2024, reportable claims increased, highlighting the need for early intervention to manage issues before they escalate. The cost of these claims has also risen, primarily due to legal fees, which often dwarf the compensation awarded to patients. Understanding this dynamic can help practitioners focus on reducing risks and improving their processes.
As Priya Chander, our experienced cosmetics claims handler, explains, “While overall there were slightly fewer claims in 2024 than 2023, my observation from our daily encounters with our clients is that there is an increasing trend in patients being unhappy with the treatment results.
“While these complaints may or may not be upheld, what’s clear is the cost of investigation and defence is rising.”
The rising trend in legal costs is illustrated by these examples from recent years: *figures have been rounded up:
Largest claim payout ever – £1,593,000
Here 24.6% of the total payout was legal costs
Second largest reserve – £547,000
This is still open, so no claimant costs are available to date.
Smaller claims breakdowns:
In this example, 82% was legal costs.
Here, legal costs made up 67% of the total paid out.
Here, legal costs make up 67%.
This research shows that, increasingly, for many claims, defence costs for both parties represent more than 50% of the total claim value.
Most common treatments that result in a claim
From January 2020 to November 2024, Hamilton Fraser has managed 1,096 medical malpractice claims. The top three claim types were:
Together, these three categories account for nearly half of all claims in this period. Notably, hair transplant claims (categorised under general treatments) are emerging as a significant area of concern due to the high associated legal costs:
Hair transplant examples:
Legal costs made up 66% of the claim.
Legal costs made up 66% of the claim.
Legal costs made up 71% of the claim.
Here, 60% was legal costs.
One critical takeaway from our 2024 claims data is for practitioners to notify us of potential claims or complaints as soon as they arise. Timely notification means that issues can be managed effectively, reducing the risk of escalating costs or legal action.
By addressing issues early, claims costs can often be reduced, and clients may be supported without the need for formal reporting.
In reality, serious formal claims against clinics are quite rare. And, while you can’t control whether or not a patient makes a claim against you, you can do a number of things that are not only good practice but will help you if a claim is made. One of the key things we see that result in the practitioner losing is because of a lack of evidence and record keeping on their part. While you don’t have any control over the legal costs, you do have control over having the right evidence to support yourself should a claim arise.
At Hamilton Fraser, we are proud to offer a standout solution for cosmetic practitioners: Emma and Priya, our dedicated team members, are authorised to manage dissatisfaction cases where complaints focus strictly on results (not injury or legal threats). This means:
This level of service is unique to Hamilton Fraser and provides clients with an invaluable resource for managing patient expectations and resolving minor complaints.
In September and October 2024, our claims team attended advanced training courses at Dr Bob Khanna’s Training Institute with Hiscox, our insurance partners.
Priya reflects: “This training enhanced our understanding of the botulinum toxin and dermal filler treatments to assist us in handling these types of claims, as these tend to be common! This was incredibly insightful and enabled all of us to understand techniques and terminology better when reviewing these types of claims to help our customers. It was amazing to see some results in real time with the live models and experience what the delegates were taught. We also had the opportunity to talk to the delegates about all things insurance and reiterate the importance of notifying insurers of any complaints/adverse reactions they may have.”
Insurance is an essential investment for any aesthetic professional and, like any investment, it’s important to look at quality, substance and a high level of support services rather than just price alone when choosing which cover is best for you.
“When starting your aesthetics journey, choosing your insurance partner should be as important a consideration as your product or your training provider. It won’t necessarily define your business but one day it could save your business. At Hamilton Fraser, we offer far more than just insurance. We constantly review the market and talk to our customers, to make sure that the service and cover we provide reflect our ever-changing environment and evolving customer needs. Our expert inhouse claims team is on hand to provide tailored support based on your individual requirements. Hamilton Fraser has seen plenty of change within the aesthetics sector since starting out in 1996 with our first customers, mainly nurses who were practising in a new health and beauty sector, aesthetic medicine. As we move into 2025, we’re looking forward to continuing to shape the future of this exciting and growing field, supporting the industry and improving standards for consumers in partnership with our customers, many of whom have been with us since the beginning.”
- Eddie Hooker, founder and CEO of Hamilton Fraser
Make sure that all of the treatments you are performing are covered under the policy. Insurance is only as good as when you make a claim.
Practitioners must work with brokers who understand the complexities of the industry. When you deal with a broker like Hamilton Fraser, you can ask any question you want, and we can answer it because we understand the business you are in.
While claims cannot always be avoided, Hamilton Fraser’s focus remains on supporting practitioners every step of the way. Our dedicated team, unique approach to managing dissatisfaction, and commitment to continuous education mean our clients are always in the best hands. Remember: early notification is key to preventing claims from spiralling out of control.
For a deeper dive into how we handle claims and tips for practitioners, check out our article on complaints and claims handling and stay tuned for our upcoming podcast with Emma, where we’ll explore more behind the scenes insights and advice.
If you are a Hamilton Fraser customer and have a claim raised against you, or if you would like to find out more information about becoming a customer, please get in touch with the team.
