What’s covered?
Hiscox medical malpractice provides cover for bodily injury, illness, disease or death arising from business activity.
We underwrite:
- CareNursing and Children’s Homes, Family Planning Centres, Foster Caring and Nursing Agencies
- Health and BeautyBeauty Therapists, Aesthetic Beauty, First Aiders, Paramedics, Health, Fitness Gyms
- Complementary MedicineMassage Therapists, Naturopathy, Nutritionists, Reflexologists
Skin deep
Beauty and alternative medicine is a growing area with lots of opportunities for brokers, says Jason WoolfeThese days it seems that every high street has one: a shop offering complementary therapies, alternative medicine or beauty treatments – sometimes all three. From acupuncture to eyelash tinting and sports massage, the sector is big and growing bigger every year. What used to be a niche market is now firmly mainstream.
Mintel examines the herbal and homeopathic medicine and aromatherapy sectors annually. Its April 2007 report estimated that we would spend £191 million on complementary medicines in the following year, an increase of nearly 32 per cent since 2002. Mintel also predicts that yearly sales of the three specialities – homeopathy, acupuncture and herbal medicine – will pass £250 million by 2011.
These numbers are reflected in the multitude of professional associations. Despite excluding the ‘big three’ specialities, the British Complementary Medicine Association still represents 60 different member organisations, each specialising in a different therapy.
The British Insurance Brokers’ Association (BIBA) launched a complementary medicine scheme last autumn. A spokesman said inquiries were coming in particularly from small businesses and predicted that demand would continue to grow.
Around the same time, Hiscox launched its own complementary medicine and beauty cover – a standalone pre-priced package covering malpractice, public and products liability. Malpractice underwriter Lisa Matthews has about 15 years’ experience in the field. She says that despite growing litigiousness in many parts of society, medical malpractice claims against alternative practitioners are not escalating as fast as the industry’s growth might suggest.
“It’s a fairly benign environment for claims,” she says. “But the world is getting more litigious and we’re getting a few more spurious claims so it’s important for practitioners to protect themselves.”
Protecting reputations
The Hiscox offering comes at a time of increasing pressure for practitioners to insure themselves. The regulatory background is complex, with a large number of professional organisations representing a multitude of therapies, some of which are regulated by statute. The government is encouraging self-regulation, but Lisa points out that many practitioners may not belong to a professional association.
The Hiscox product is aimed at individual practitioners, but Lisa is keen to discuss applications on behalf of associations. She warns that, in a sector where reputation is crucial, a therapist’s insurer needs to defend its client against bogus claims.
As Lisa says, “Protecting reputation is very important to the therapist – it’s their livelihood. We’ve already got specialist loss adjusters and we will protect rather than simply pay out.”
