The time we wait for all year long has finally arrived. Many changes happen during these months, and we have some risk management advice for you to keep in mind:
1) It is common to increase staffing for busy season. When hiring, look for those who seem honest and committed to your business model. If “free tanning” is clearly the only reason they want the job, chances are good that they aren’t a good fit for your salon. An owner once told me that a person who didn’t like to be tan interviewed for the job – probably not a good fit, either. A salon with qualified staff tends to retain happy customers! It also helps reduce the possibility of theft, misevaluation of exposure times, along with many other headaches that all business owners try to avoid. And of course, it’s also important to remember to include all staff on your Workers’ Compensation policy (if you need a recap on Workers’ Comp, refer back to last month’s article or contact your specialized insured agent). The last thing you want is an unexpected audit that results in additional premiums due to a higher than estimated payroll.[gap]
2) An essential part of your training process should be getting your staff industry-certified and keeping up to speed on your local legislation. An industry-specific training course will not only help you and your team gain better knowledge of our unique industry, but it could also save you money on your business insurance. The insurance programs specific to tanning businesses consider the importance of a well-run, educated and certified salon.[gap]
3) As a staff member gains more responsibility, your company’s exposures can increase. At that point, you need to look to your insurance agent for help with adjustments to your coverage. For example, Hired and Non-Owned Auto coverage could protect your entity if your staff uses their own vehicles during their shift to run errands for the salon. Think about this scenario: your employee has a car accident and the other party decides to sue her as an individual – which should be covered by her Personal Auto Policy – but also your legal entity, because it happened while she was on the clock. Hired and Non-Owned Auto is intended for this exact situation. No one wants to think that their staff would steal from them; but, unfortunately, they often do. Employee Dishonesty coverage might be beneficial to you, as some people feel entitled to the lotions or cash in the store … but that is stealing. Many times, you can get this coverage with a lower deductible and a minimal additional premium per location.[gap]
4) When a client is ready to pay $150 for a bottle of lotion, the last thing you want is to be out of stock! Keeping up with demand also means increasing inventory. As you stock up, you might need to increase the value of your salon contents for your property coverage. It’s best if expensive products can be locked away, and retail items moved out of windows to reduce the chance of quick break-ins. Most businesses start with a $1,000 Property deductible, so when a vandal breaks the glass and steals a few hundred dollars’ worth of inventory, it could easily be under your deductible. Alarm systems and video cameras are good theft deterrents and another possible way to save money on your business insurance. Besides the “old fashioned” types of crime, retailers are now extremely susceptible to identity theft, due to the amount of personal info kept on every customer. Ask your agent about Corporate Identity Protection or Cyber Liability. Imagine if someone hacked your database and stole all your clients’ personal info, then they posed as your salon to gain social security, credit card or bank account numbers. This form of theft could ruin your business and your reputation.[gap]
5) Scheduled equipment inspection and maintenance is imperative all year ‘round and might be needed more frequently during busy season. There is a reason that the manufacturers have recommendations on the usage of lamps and they need to be followed. If an acrylic shield is broken, immediately stop using that unit until it is repaired. One of the easy parts of running a salon is keeping it clean and in top shape.[gap]
These are helpful reminders for when your business picks up, and throughout the year. Contact your specialized insurance agent to make sure that you have the appropriate coverage, and be sure to ask them for additional risk management techniques.[gap]
Team Universal wishes you all the best in 2016!
