Major risks when the beauty business turns ugly

Good practice is crucial to mitigate risks

Major risks when the beauty business turns ugly

Risk Management News

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Salon owners know the beauty business can turn ugly: wax burns, pedicure slips and sauna fires are among the many perils that may hurt their customers and their activity. Good practice is crucial to mitigate those risks and ensure spa days remain a relaxed experience for everyone.

Douglas Barnett, director of mid-market and customer risk management at AXA Insurance, shares his advice.

When flames destroyed a Holiday Inn hotel near Birmingham (England) earlier this month, it was the latest example of a sauna fire burning down a whole facility. It happens frequently – sometimes with devastating consequences, like in Berlin in 2017 when three men died.

Less serious and more frequent, wax burns regularly lead to insurance claims and lawsuits. In May, a Connecticut woman settled hers for $400,000. She had filed a lawsuit against a day spa after wax fell into her eye, damaging her sight. The salon in question has now closed.

Beauty salons offer a wide variety of services involving the hair, nails and skin of their clients; and they present an equally wide variety of exposures. Many treatments can go ‘ouch’ if they are performed with the wrong equipment or by untrained staff. Even a small mistake can result in bodily harm.

Here are the main dangers salon owners should look out for, and the advice their insurers and brokers should provide.

Allergic reactions

Massage oils, face creams and other ointments may contain allergens, especially if they’re nut-based. Their composition must be checked and the customer must be asked if they’re allergic to anything. Where relevant, the beautician must do a patch test.

Burns

Some products sourced from the Far East have caused skin burns. Salons should pay particular attention to traceability and quality – and preferably use reputable providers.

Hot wax is a common source of burns. Equipment should have thermostatic controls and their accuracy should be checked on a regular basis, with records of checks maintained.

Slips

The floor around a pedicure bath will get wet; oil may get spilled in massage rooms, and gels and body fats will accumulate in showers. These floors therefore should be non-slip surfaces and they need to be cleaned properly. Housekeeping records should be kept.

Legionella

Bacteria love steam rooms, untreated water and moist air. Water sources and calorifiers need to be well maintained and dosed as per the local legionella regulations.

Human factors

Some treatments present a risk for people under medication or with medical conditions; others are not recommended for pregnant women. It is good practice to go through a health questionnaire with customers – that moment also gives the opportunity to warn of possible side effects and provide advice about post-treatment conduct. Even long-time clients should be asked about their health as their condition might have changed since their last visit.

Beauticians need to be qualified for the treatments they administer. Training records and third-party accreditations must be kept.

Along with all those risk management measures, salon owners need the right insurance policies, including compulsory employers’ liability (or workers’ compensation) if they employ staff, and public liability (or general liability) to protect their business from third-party claims of bodily injury or property damage. If they keep expensive equipment, they will want to consider contents insurance. And they should discuss all their circumstances with their insurer or broker to get the right level of business interruption cover and any other relevant protection.

A salon’s policies should cover its staff, its clients and the business itself. No pain, no claim.

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