Why aesthetic practitioners should be cautious when treating their staff

Treating staff is a common practice within the aesthetic industry. Practitioners often try out new treatments or products on their employees or offer them free or discounted services. This seemingly has lots of benefits. It allows staff to personally experience the treatments, making them better advocates when speaking to patients about treatments, and it serves as a living testament to the results your clinic can achieve.

However, many practitioners may not realise that their insurance policies often do not cover claims made by staff members who receive such treatments. This can lead to significant legal and financial consequences if a staff member files a claim for a treatment that goes wrong.

Insurance exclusions: read the small print

Most insurance policies, including those from well-known providers like Hiscox, have specific exclusions for medical malpractice claims brought by related parties. According to Hiscox’s policy wording, there is an exclusion related to claims brought by any insured party, which includes employees. The policy states:

"Any claim brought by an insured within the definition of you or any party with a financial, executive or managerial interest in you, including any parent company or any party in which you have a financial, executive or managerial interest, including any subsidiary company. This does not apply to a claim based on a liability to an independent third party directly arising out of the performance of your business activity."

This clause essentially means that if an employee makes a claim against you in relation to a treatment, it would not be covered under the standard policy.

Best practices for practitioners

To mitigate these risks, aesthetic practitioners should consider the following best practices:

1. Avoid treating staff: The simplest way to avoid insurance complications is to refrain from treating staff members altogether.
2. Formalise the process: If you do decide to treat staff, make sure they go through the same consultation and treatment processes as any other patient. Document these procedures thoroughly.
3. Check your policy: Regularly review your insurance policy to understand its exclusions and limitations. Consider consulting with your insurance provider to discuss your specific needs and potential coverage gaps.

Seek advice: Before treating staff, seek advice to understand the potential implications and make sure you are compliant with all legal requirements.

“It is important to remember if you do treat an employee and a complaint or formal claim is brought against you, you will need to inform us of the matter”, says Emma Bracchi, Hamilton Fraser’s Senior Client Services Technician. “It is a policy condition that all situations that may give rise to a claim are reported to us/Hiscox, even if they think the matter will not be covered. Every claim is dealt with on a case-by-case basis, so we always put a case forward on behalf of our clients.”

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While treating staff can have benefits, it also comes with significant risks that can leave you vulnerable to uninsured claims. By understanding and reading your insurance policy wording and taking steps to protect yourself, you can make sure that your practice remains both ethical and legally sound. Always prioritise the safety and well-being of your staff and patients, and be aware of the potential financial and legal implications of your actions.

For more information on the simple steps you can take to keep compliant with your insurance policy, read our article on avoiding insurance risks.

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