Why have we implemented a compulsory insurance scheme?
We have made professional indemnity insurance compulsory as there has been an increase in alleged recklessness, misconduct and unprofessional behaviour claims in the beauty industry.
What is professional indemnity insurance?
Professional Indemnity Insurance protects you against negligence based or civil claims by clients, including the cost of defending court proceedings.
What is the difference between professional indemnity insurance and public liability insurance?
Public liability protects you if a client injures themselves on your premises, or if you accidentally damage any of their belongings whilst they are in your care.
Professional indemnity insurance covers you for the care you provide a client in your professional field, for claims of alleged negligent treatment and advice, as well as medical malpractice and molestation.
I have professional indemnity insurance through another provider. What specific areas require cover?
We are aware that some of our members have insurance, please check with your insurer that you are covered for professional indemnity insurance and update your policy, we have identified four areas that need cover:
Can I purchase professional indemnity insurance through another provider?
Yes. You can choose to be covered through the provider of your choice. However, professional indemnity insurance is compulsory and if you have not purchased the Association based cover, you are required to provide your current policy each year to confirm you are covered as per membership requirements.
What does the standard policy cover?
The professional indemnity insurance package purchased through the Association covers you as a sole-trader and beauty therapy clinic owner, including all employees. It covers you for any claims from a client who suggests that the therapist has given careless or negligent advice or treatment or has caused medical issues or molestation.
How much does the Association group policy cost?
$200 per year + GST
I want to add other insurances to my policy, who do I contact to organise this?
The Insurance Brokers (TIB) provide the Association with the group scheme and cover. Please contact TIB to upgrade your insurance or to discuss your policy and other insurance requirements.
Who do I contact if there is a possibility of a claim against me?
Contact TIB immediately if there is a possibility of a claim, and include a detailed report of what has occurred. This report will be provided to the insurer, and a claim number generated. If the client contacts you or a lawyer with a claim of negligence, you are automatically covered.
It is extremely important that you follow the process, and report any act that could constitute a claim as soon as you are aware of such an event occurring.
Who do I contact at TIB?
If you have any questions about your policy, please contact:
Information provided by Lesley Scher, TIB Insurance.