Friend or CLAIMANT?

What happens if a friend makes an insurance claim against you? Expert Rosie Barrington explains the potential repercussions

It’s a common misconception that you don’t need insurance to carry out treatments on friends and family.

We would all like to think that someone we are close to would never take legal action against us over an unintentional mistake.

However, if a friend or family member suffers an injury that stops them from working so they cannot pay their bills, or permanently scars them, all friendly loyalties may be forgotten. Similarly, if you are a mobile therapist and accidentally damage an expensive item in their home beyond repair, there’s a good chance they’ll look to make an insurance claim.

Will a friend really claim?

Often claimants view it that the insurance company is paying the claim, not their friend, so they will willingly pursue the claim not realising it can affect your premium, not to mention your confidence and your reputation, for years to come.

Recently, we received a claim from a policy holder who went to her friend’s house to provide a nail treatment. While carrying out the treatment, she put the nail polish bottle on the customer’s TV unit but when she picked it up again there was a small mark left on a cupboard. Our policyholder was in absolute shock to find out that not only was one of her best friends making a claim against her but the amount being claimed was in excess of £2,000.

The true cost

The friend’s justification of the high amount claimed was that the unit was bespoke and handmade by her husband and a replacement could not be purchased off the shelf.

A price was negotiated in the end and the claim was settled. The damaged unit was replaced but the friendship could well have been damaged beyond repair.

So, never assume that a friend won’t claim against you; it can easily happen. You can’t put a price on friendship but luckily you can put a price on insurance to avoid these situations turning nasty, so always make sure you have insurance in place when you are offering treatments, no matter who the customer is.

Rosie Barrington is manager at Professional Beauty Direct, which provides insurance for individuals from £39.50 per year, and salon insurance packages from £184.20. 0345 605 8670 professionalbeauty.co.uk/pbinsurance