Even though Universal Insurance is based in warm and sunny Phoenix, AZ where it’s rare to bundle up for the winter, we do recommend “bundling” when it comes to your salon insurance needs.
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1. Cost Savings
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Did you know that you might be able to save on your insurance if you have the same provider for the professional liability, property and the general liability? This is called a package credit and many times, can only be applied if you all lines are written with the same insurance provider.
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2. Preventing Duplicate Coverage
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It is a nice benefit for you to have an insurance agent who specializes in your industry and knows your business. Because of this, you may decide to have different specialty agents for different types of businesses that you own, or make sure that your agent is familiar with your business operations. For example, you need a specialized agent to write your salon insurance, but you also own dry cleaning shops, gyms or self-storage operations. While all the businesses need Property and General Liability, there are insurance products out there geared for the different niche industries.
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What are you doing for workers’ compensation? If you have at least 51% common ownership, you should have one Worker’s Compensation policy for all entities; but make sure you don’t have a policy with both agents. Not only have we seen this before, but we have also seen some locations missing, entities missing or clients being uninsured.
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Also, if one entity owns multiple businesses, then you need to alert your agent so that your policy can be written to include specific wording to protect that entity. Sometimes, it may be easier to have one agent to handle all your insurance needs if they have appointments with different carriers. Please make sure that they have knowledge about each class of business; this will make the learning curve much easier on all parties.
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3. Ease of Use
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Having one “point person” puts less stress on you. Time is money, so make sure that your agent knows the industries you are in. It may sound simple, but do they know the difference between UV, Red-Light, Spray-Tan Units and Airbrushing? This knowledge is what will help you learn about different risk management tips and techniques. You likely will have more comfort if your broker has background knowledge of your daily operations.
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4. Avoid Gaps in Coverage
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Tanning salon owners need professional liability for accidents and negligent acts that may arise from use of the UV equipment. This is different from general liability. Professional liability is typically excluded from the standard business owner’s policy. Having professional liability with one insurance company and general liability with another will potentially lead to gaps in coverage. Why, you may ask? Every policy is slightly different. Professional services are looked upon differently by the various companies out there that write tanning salon policies. Unless you read every page of your policy, it’s typically in your best interest to have the same carrier for these lines of coverage, reducing the chance of a coverage gap or duplicate coverage.
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5. Claims Reporting is Easier
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When you have a claim at the salon, whether it’s a fire, theft, overexposure or trip and fall, it is nice to have one more person to contact after the claim occurs. They can take down the information and direct it to the appropriate party.
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At Universal Insurance, helping salon owners is top priority. We understand that your day is busy and insurance can be put on the back burner. We will continue to provide tips, tools and suggestions to make the insurance process easy, simple and affordable. Stay warm!
It is a nice benefit for you to have an insurance agent who specializes in your industry and knows your business.
