By Tina Valentine, Risk Manager, Guild Insurance

Recognising the risks you face in the day-to-day operation of your salon is the first step in becoming an effective risk manager.

Even though we live and work with risk everyday, we have the capacity to manage risk and keep it within tolerable limits. While having the best insurance cover certainly helps to alleviate the financial impact of an incident, the more important issues to safeguard relate to business integrity and your professional reputation. These can be impacted by a broad range of risks.

Take for example, the type of the products applied to your customers’ hair and skin on a daily basis. Many of these products have the potential to burn or cause skin reactions. Guild Insurance has received a number of claims involving chemical burns which have resulted in considerable expense to settle them. While this cost is quantifiable, the impact on one’s reputation is often immense.

Case Study

In one case a hairdresser’s client complained of a burning sensation while having foils applied. The hairdresser did not take any steps to remove the dye immediately, which caused severe burns and a loss of a section of hair which will never grow back. During the investigation of the claim it was established that there was no scientific evidence to prove the injury was solely attributable to the application of the foils and, in addition, it could not be established that a reaction between the foils and other chemicals in the hair had taken place. Despite this the hairdresser was found to have breached their duty of care to the client and as a consequence, not only was a significant financial settlement made by Guild to the client, but in this particular case the complaint was aired by the media - causing great distress to the owner of the salon.

What actions should this hairdresser have taken? First and foremost they should have listened to the client’s complaint and then removed the dye immediately. Secondly, the manufacturers of the product supplied a warning that a skin test should be conducted two days prior to use but this test was not undertaken by the hairdresser on this occasion. Clearly had these actions been employed, the customer’s injury could have been avoided entirely.

An incident like this one could occur with the very next person who walks into your salon. While some complaints from customers may at times appear frivolous and indeed sometimes lack any merit, it is vitally important to report all incidents to your insurer as early as possible. Early reporting ensures that the incident is properly managed and controlled to safeguard your interests.

You can also follow some basic guidelines outlined below to help reduce the impact of risks in your salon, remembering that in most cases communication is key.

• Communicate with your client. If there is a problem notify your insurer as soon as possible.
• Remember that your initial response to an incident can determine the direction it takes in the future.
• Keep clear and concise records of treatments provided. Make sure all entries are dated.
• Use consent forms, particularly where there is a detailed treatment involved, such as facial peel or IPL.
• Ensure all treatments are performed by trained personnel.
• Have consistent protocols and processes in place.
• Maintain equipment and use all products in accordance with manufacturers’ instructions.

If you’re uncertain whether an incident will result in a claim you should still report it to Guild Insurance without delay. With a national network of regional offices, Guild Insurance provides a comprehensive range of products and value-added services that are especially tailored to meet your needs. Guild’s service promise and tailored approach is what sets it apart from other insurers. Claims are handled locally in each regional office and Guild's Business Managers meet with each client personally. Additionally, Guild is a direct underwriter and clients deal directly with Guild, not brokers or agents.

Find more information on Guild's Insurance for Hairdressers.