Claims Examples

Sample of Claims Paid on PROtique Policies

Here are samples of real-life claims that have been paid on PROtique Masterplan policies over the last few years.  Naturally every claim is different and is viewed on its own against the coverage provided by the policy.  There are always exclusions in an insurance policy, and we’ve tried to eliminate as many as possible to give coverage that is customized for the unique risks of the beauty industry.  While claim settlements are determined solely by the insurance company, we make ourselves available to advocate for our clients should they encounter a problem during a claim to ensure you’re treated fairly.

Client Fell off Styling Stool  We have a client that owns a hair salon.  They had posted signs in the salon to warn customers not to sit on the styling stools.  After one of their customers sat on a stool, staff asked the customer not to use it.  Guess what happened.  The customer fell off the stool and unfortunately hurt herself.  A month later the salon owner was served with a lawsuit.  The insurance company paid the lawyers fees to defend our client and for the settlement……$15,000!  It seems unbelievable, but regrettably, it’s true.  This is what General Liability insurance is designed to cover.

Waxing Burn  A client of ours was seeing a customer to give a bikini wax.  With 15 years experience, the esthetician stopped waxing shortly after starting and declined to was any further as saw that the area was too tender.  The customer insisted she wax further, and not wanting to upset a customer, the bikini wax was done to the customer’s specifications.  The customer returned the next day and advised our client that she had to go to the hospital for stitches as she was bleeding from the treatment.  The customer retained a lawyer who alleged professional negligence and ultimately the PROtique insurance policy paid out almost $14,000 to settle the claim 2 years later.  This is what Professional Liability insurance is designed to cover.

Fire  A candle was accidentally left burning after the spa had closed.  As unattended candles tend to do, it proceeded to cause extensive fire damage to spa, and the owner, who came to the spa shortly afterwards, was taken to the hospital for smoke inhalation.  Unfortunately the spa was closed for months afterwards.  Since our client’s source of income was gone, the insurance company advanced our client funds right away, and eventually, the whole claim was settled for just over $500,000, which covered lost profits, paid for ongoing expenses while the spa was closed, and paid to replace lost contents, renovations and leasehold improvements.

Esthetics Bed Collapsed  Our client bought a new esthetics bed.  Unfortunately the bed collapsed while a patron was on it.  The patron later advised that she wanted to go to physio, and a few weeks later our client was presented with a lawyers letter indicating her intent to sue as a result of the injury.  The insurance company’s lawyers took over dealing with the issue.  It took over 2 years to negotiate a settlement at a total cost of about $30,000.

Broken Water Main  The city’s water main broke out front of our client’s hair salon.  As a result, the salon had to close for 3 days while they were without water.  The insurance company for PROtique paid over $12,000 to our client for lost profit and to reimburse necessary expenses that continued while shut down, like salaries, rent and utilities.

Laser Hair Removal Burn  A patron at a client’s spa had laser hair removal performed on various parts of her body.  The customer experienced a burning sensation and numerous red, raised burn marks on the treated areas.  The lawsuit indicted she had scarring that may require corrective treatment, along with the suffering from the usual host of ailments that typically seem to be included in bodily injury lawsuits, like insomnia, anxiety and depression.  Our client was presented with a $250,000 malpractice lawsuit as a result.  It was eventually settled 2 years later with the insurance company for PROtique paying about $27,000 to the victim and lawyers.  This is what Professional Liability insurance is designed to cover.

Injured by Front Door of Salon  A customer of a salon approached the door to go in for an appointment just as another customer was leaving the salon.   The door opened and hit the woman trying to enter, and she fell to the ground sustaining a broken hip, neck and back pain.  An awful situation indeed.  Our client was presented with a lawsuit for over $500,000 a month later essentially alleging that they didn’t take reasonable care to prevent a dangerous situation, didn’t warn people of the dangers of walking by the door, and that the door was a danger to people using it.  While the arguments of the lawyer might be a little hard to swallow, there’s no denying the injury.  The PROtique Masterplan policy paid to defend the salon owner, and paid the $125,000 to settle the claim.  This is what General Liability insurance is designed to cover.

Theft  A break and enter occurred in our client’s home-based spa.  The thief’s made off with her laser hair removal equipment.  Our client was able to replace the equipment quickly using her PROtique Masterplan policy to pay the $16,000 bill.

Trip & Fall  Do you have any steps in your spa?  If so, take care to make sure your customers see them every time.  One of our clients had a spa with a single step in it leading from the reception area towards the treatment rooms.  Within 3 months, 2 customers had tripped and fell on the step.  Although both customers refused help at the time, a few months later our client received notice from their lawyers notifying them that lawsuits were being filed.  Are the claims legitimate or embellished?  It’s hard to tell, although we do tend to see more lawsuits when the economy is suffering.  While these claims have not be settled yet, the PROtique Masterplan insurance policy will pay the lawyers fees to defend our client, and of course there is a minimum of $2,000,000 of liability coverage on the PROtique Masterplan policy to pay any judgement should our client be found to be negligent.  This is what General Liability insurance is designed to cover.

Fire  A fire started in the neighbouring unit to our client and ended up burning her hair salon to the ground – a total loss.  Although this claim is not quite settled yet, the PROtique Masterplan insurance policy has coverage to pay you for lost profit and to pay necessary ongoing expenses that continue until you can re-open and get your business back up to where it was before the claim – up to 12 months after the claim if necessary.  Unfortunately in this case, our client had not increased her contents limit to account for the replacement cost of all furnishings, equipment, and stock, nor the renovations and leasehold improvements she was responsible for in her leased unit.  As a result, her insurance only covered a fraction of the actual loss.  We were successful though in getting her a bigger settlement after we discovered an error in the original settlement offer.

Storm Damage  A freak, intense storm caused extensive water damage in our client’s hair salon, closing it down for several weeks until the flooring and drywall could be replaced.  To compensate our client for the lost business and to repair the salon, a total payout of $28,000 was made by the insurance company for PROtique.  This also helped retain key employees as they could be paid until the salon re-opened and they didn’t have to go to work for a competitor.

Waxing Burn  Our client had a new customer who advised she had very sensitive skin, and who wanted her eyebrows and upper lip waxed.  These are the details as we’ve been told.  The experienced esthetician used a very pliable warm wax, but reportedly the customer didn’t think it was hot enough to do a good job and asked for it to be hotter.  Shortly after the esthetician reportedly advised her customer she didn’t want to go any further with the waxing, but the customer insisted she needed it to be done.  The esthetician completed the service to the customer’s specifications.  The next day, the customer phoned to advise she had been burned and is looking for compensation.  None of the details or allegations of this claim have been proven in court yet, but the claim is now being handled by the insurance company.  So perhaps the customer isn’t always right, although if you have the professional liability coverge of a PROtique Masterplan policy, you can rest easy knowing that the insurance company will defend you in this type of situation.