My client get a fill-in (which is just adding a little more powder on top of her old fake nail). I gave her the service WITHOUT cutting her skin or anything that cause pain. Her nail were long (a lot of my clients wear long nails). She came back and told me she had to go to the emergency because her thumb was throbbing due to bacterial infection in her nails. She came back to show me her finger, which was swollen but I don't see the normal fungus that I saw when I do nails in her nails. They are old set of nails. She threats to sue.
I told her I value her business and I want to follow up through message. She took off her own fake nail afterward and told me she went to her primary doctor. Then she texted me and said she will settle with $1,500. This is not a large amount, but it is not small, since I work very hard to pay out of my pocket if this isn't my fault. I did replied and ask if she has medical bills, but she doesn't have them yet. I told her if anything, I can pay max $200. Then over the text she threats to see me in court and report this to State Board and social media (which I'm not scared of, becauase it is nature of doing business).
I have General Liability Insurance for Business Owner, but no Professional Liability. If this case go to court, I know it will waste my time, energy, and money. However, I do not want to simply give in to her demand. What are some steps I should take to make peaceful negotiation while not being under her threat. Any advice regarding the legal implication of this issue will help. Thank you!