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The United Kingdom is among the leading three cosmetic consumers in Western Europe. We have now reached a point where the stigma around these treatments is fading away and we are close to eliminating uncertainty and proving to the public that these treatments are safe.
With the sector’s market value reached a staggering 9.8 billion British Pounds and estimates for the next five years predict that the annual spend per head will go from £73 to £487, the future of the industry is looking very promising.
The Challenge For Cosmetic Industry
With this great success comes its own set of unique challenges. In recent year there has been an explosion of new cosmetic clinics around the country. The marketplace has become crowded and the spotlight has been put on clinics to provide a professional service every time. There is no room for mistakes. This is leading to many medical clinics and practitioners experiencing an increased frequency of compensation claims.
As the industry continues to grow year after year, these risks are only going to become more prominent. Businesses within the sector are having to overcome a range of challenges caused by this increase in popularity and one wrong move could leave companies in the red. In this article we aim to give total clarity around the risks involved, offering professional advice on how you can make sure you are protected.
Cosmetic Supply Interruption
If your business sources cosmetic supplies from other countries it’s likely that you have already felt the effects of the United Kingdom’s departure from the European Union. Supply is a fundamental part of the cosmetic industry, from gaining access to sanitised equipment to the fillers needed to complete procedures, without it the company can not function. Any interruption to the supply chain can be extremely costly but if this drought of supplies were to run on for a prolonged period, businesses may be forced to close the premises entirely.
Breakdown of Specialist Equipment
Every cosmetic procedure involves specialist equipment in one way or another. It could be the lighting used to complete the procedure or it might be as simple as the hydraulic chair you sit your patients on. If there were to be a breakdown, are you confident that your business has the capital available to cover these costs? Specialist cosmetic equipment is very costly and without adequate protection in place, these breakdowns can cause huge financial strain to the practice.
Theft of Equipment & Supplies
Similar to supply chain interruptions and breakdowns, if you don’t have the equipment needed to get the job done then there is no cash flow to the business. With theft against commercial businesses being a well-recognised problem. A recent study published by the Commercial Victimisation Survey stated that these forms of crime have become increasingly frequent over the past years, it’s a risk that you need to evaluate.
Claims From Made By Clients
Clients pose the greatest risk to businesses within the cosmetic industry. The most common claim in this sector are from old clients looking for compensation after receiving cosmetic work. If they feel like their cosmetic treatment has not been taken care of properly or there are mistakes in the procedure, clients are within their rights to take your business to court. In this situation, you are not only vulnerable to compensation fees but you may also have to fork out for legal defence to help defend your case.
Protecting Your Business From Risk
Protecting your business against these common risks is simpler than you may expect. Investing in a dedicated Cosmetic Insurance you can provide your business with comprehensive protection which covers all of the daily risks your business may encounter. Commonly a cosmetic insurance policy will include:
- Public liability Insurance
- Professional liability insurance
- Cyber Insurance
- Clinic Cover
These insurance policies are designed to cover your business at all times ensuring you are never being put at financial risk from something that is not the fault of the business. Don’t leave it to chance and protect your business from the unexpected today!
Summary of Cometic Risk In 2021
The cosmetic industry as a whole involves a vast amount of risk. Even with the latest safety equipment and the most careful and thought out processes it’s impossible to avoid it. Unfortunately, accidents can happen within the workplace but by having the correct level of cover in place you can protect yourself and the business form any financial loss that may occur as a result of this.
In a time where COVID-19 has shown us the importance of planning for the unexpected, it’s crucial that all businesses operating within the industry have the correct protection. Not sure where to start, take the time to understand where the biggest risks in your business lay and then put together an insurance policy which is designed to protect these areas of risk.
Disclaimer: The statements, opinions, and data contained in these publications are solely those of the individual authors and contributors and not of Credihealth and the editor(s).
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