As we know, the laser has dramatically enhanced the beauty industry. Lasers can remove hair, tighten skin, burn veins, and many more services. This new technology borders on medical, not cosmetic. Laser or IPL services have caused a multitude of further exposures that require beauty insurance policies to adapt. In this article, we will highlight six things you need to know about laser equipment coverage and your beauty insurance policy. These are just some of the many reasons to talk to your beauty broker to give yourself the Insurance Advantage. Protect yourself, your business and your investment.
Most people would assume that using lasers on the skin would cause liability claims. These events unfortunately happen, but property damage claims are more frequent. Think about it! You have a powerful piece of equipment that requires a large amount of electricity in your place of business. People don’t realize that a lightning strike could cause a power surge. If there is a power surge while the device is on, it is already pulling 100’s of volts from the grid. Besides a fire, the laser has a multitude of intricate moving parts. If you look in the machine, there are so many wires that it looks like a cyborg from the old movies. If a fire starts, it can travel quickly, destroying your equipment and also cause property damage. If you don’t have laser equipment coverage on your beauty insurance policy, you are in trouble!
Often machines can be used to perform dozens of different services. As a beauty technician, you may start with two or three techniques as you explore the laser’s capabilities. Once you see it’s relativity to your business, you decide to add more services to your menu. It is imperative to tell your insurance provider that you have added these services. Without telling them that you now have additional services, for example, spider-vein removal, they can deny a claim! Also, these machines can often enhance their offering just by adding a new handset. For the purchase of any expensive piece of equipment and parts, communicate with your insurance broker. They will add the equipment value to your insurance policy.
These expensive machines can be portable. Some come on wheels and can be moved onto a truck relatively easily. With more car accidents happening than ever before, add a property floater onto your beauty insurance policy. A property floater will extend coverage while the machine is not in its primary location. This coverage is costly, so consult with your beauty expert before you commit to anything to ensure you have appropriate laser equipment coverage. Make sure by moving this equipment; you are setting your prices accordingly for mobile services.
With excellent reason, insurance companies like training. The more technicians practice, the less likely a claim will happen from inexperience. Manufacturers often offer a two-day training course. However, it generally just shows how to use the device, not how to provide the service. Unfortunately, there may be no certification, but any training is essential. If your local beauty school offers training, it is beneficial. A trained medical esthetician who used machines in their schools should be taking the machine training. Although this provides another issue, as often, schools cannot offer the latest in equipment as these machines are expensive. Sometimes students are learning on obsolete technology. Therefore, even if you have had school laser lessons, make sure to attend the manufacturer training as well. Staying up to date is essential. IF you are using a piece of equipment from your place of work, make sure they have equipment coverage. Have them check out our Medi-Spa Insurance for small or large medi-spas.
Financing issues & issuance
Not too many people have the capital available to purchase these machines outright. Hence why they may need to secure financing. A bank can arrange funds, or a financing company can arrange money through the manufacturer. Insurance coverage for the laster needs to be in place before the machine is delivered. That means there is a deadline for your insurance effective date. Additional pressure for insurance companies can limit your beauty insurance price options. In the event of a loss or damage to the machine, your insurance payout will be issued to the financing company first for the value of the device. Again, make sure you talk to your beauty broker to make sure you have proper adequate coverage to protect your investment.
Laser hair services are often the most prone to fraudulent claims. An insurance company defines a fraudulent claim as to when a client knowingly does an act to get access to the funds from your
beauty insurance policy. Insurance thieves prey on this type of service as it is relatively inexpensive to have hair removal, for example, on, upper lip, lower back, arms. Someone could walk-in sign up for four sessions at $200 for their upper lip to get treated and then purposely cause damage to their skin. They may give themselves a burn, then call their lawyers to say that your treatment caused the injury. Here comes the illegitimate lawsuit where the legal suit to your beauty insurance is for $2,000,000 in damages. No matter if you win or not, you still have to cover your legal expenses. Unlike other services that are a bit harder to prove, a skin burn is very easy to get if you do not follow the post-care procedures properly. No one wants to think that insurance fraud is even possible, let alone do they want to worry about it. So make sure you have the Insurance Protection with laser equipment coverage on your beauty insurance.
In conclusion, make sure you adequately insure all laser equipment on your beauty insurance policy. These details include making sure your insurance broker knows the exact value of the device on file, including any extra handsets. On your annual renewal, make sure all insured needs are clarified. Laser machines can depreciate quickly! Having the right type of coverage in place is paramount. Finally, make sure you understand your insurance beauty insurance policy. The policy should include all the pertinent exposure and fringe coverage, including Professional Liability, Commercial General Liability and Content Coverage. Talk to your beauty broker today to make sure your investment is covered and protected.