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New Services Mean New Risks: Why Insurance Reviews Matter
New services on the menu can create new opportunities, but they can also expose your business to greater liability. SASSI's Kathy Lopez shares a few services that pose greater risk, discusses some of the mistakes owners make when expanding their menus, and lists simple risk management strategies.
by Kathy Lopez, SASSI (The Salon and Spa Specialty Agency)
July 7, 2026
Laser hair removal, body contouring services and chemical peels are just three of the services that that can introduce liability risks to your business. SASSI's Kathy Lopez helps you navigate the most common risk-management mistakes.
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3 min to read
- New services can lead to greater business opportunities but also increase liability risks.
- Mistakes in menu expansion can expose businesses to heightened liability issues.
- Implementing straightforward risk management strategies can help mitigate these risks.
*Summarized by AI
Expanding service offerings can be a catalyst to attract new clients to salons and spas, differentiate these businesses from their competitors while adding revenue. Offerings are constantly evolving to meet consumers’ demands with popular additions such as laser treatments, IPL (intense pulsed light) and body-contouring services. While new services bring opportunity, they also introduce new and unexpected liabilities for salon and spa owners.
From chemical burns to allergic reactions, missteps can quickly escalate into costly insurance claims. Before launching a new service, owners should make sure their insurance coverage matches their offerings to properly protect their reputation and financial stability.
Trending Treatments, Emerging Exposures
Many trending service offerings are advanced treatments that require specialized equipment, enhanced training and more complex client care than traditional beauty services. Despite these procedures being able to be performed quickly with minimal downtime, they can introduce liability risks if mistakes are made. Among some of the most popular offerings are:
Laser hair removal and IPL: Risks include burns, skin discoloration, scarring and eye injuries if equipment is used improperly or operators are not adequately trained
Body-contouring: Potential risks include skin damage, nerve-related issues and client dissatisfaction with results.
Chemical peels: Clients could endure burns, scarring, hyperpigmentation or other adverse skin reactions, especially if the peel is too strong for the client's skin type or applied incorrectly.
Common Missteps of Expanding Offerings
Adding new services could bring coverage gaps that leave salon and spa owners exposed to costly risks. Even the most experienced professionals can face unexpected incidents that could lead to costly settlements, including:
- Assuming existing skincare or beauty coverage applies to new services.
- Failing to add newly purchased equipment or machines to a policy.
- Failing to update coverage when hiring employees or independent operators to perform new services.
- Overlooking policy limitations on the initial insurance application.
Avoiding Mistakes for Long-Term Success
Salon and spa owners can protect their businesses by implementing simple risk management steps before expanding offerings. Practical tips to limit risks and avoid claims include:
- Reducing hazards: Maintain a clean, organized environment to avoid accidents such as slips, trips and falls.
- Prioritizing staff training: Properly train staff on new tools and techniques before adding new services or using specialized equipment.
- Carefully screening clients: Thoroughly evaluate whether a client is an appropriate candidate for a treatment before recommending or performing a service. Treatments involving chemicals, heat or specialized equipment should be performed with extra caution and require patch tests to determine allergic reactions or adverse results.
- Maintaining accurate client records: Ensure all client documents such as contact information, health history and allergies and signed consent or liability forms are completed and up to date before performing any treatments.
Applying these beauty industry best practices can significantly reduce the likelihood of accidents or injuries and provide valuable documentation in the case of a future claim or complaint. A quick conversation with an insurance provider can help ensure businesses remain properly protected. Implementing recommended proactive risk management steps and performing coverage reviews before adding new services, will help salon and spa owners grow their businesses successfully and safely.
Kathy Lopez at the SASSI booth during a trade show.
Credit:
SASSI
About the Author: Kathy Lopez is the Account Manager for SASSI, the Salon and Spa Specialty Insurance program at Brownyard Group. She can be reached at klopez@brownyard.com.
Quick Answers
Introducing new services can expose businesses to greater liability because they may not be fully aware of the associated risks and how they could impact existing operations. New services often come with unique challenges that necessitate a review of current insurance policies to ensure adequate coverage.
*Summarized by AI
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