Before investing time and large amounts of money into a service that may not have coverage, give your agent a call.
For an industry to evolve, it has to change – and tanning salons are no exception. The tanning industry has become a very diverse business. Salon owners are always looking for ways to set themselves apart from the pack, constantly evaluating what needs to be offered in terms of services and equipment to stay up-to-date with the current trends.
When considering re-vamping your salon and prioritizing the steps to do so, insurance is often at the bottom of the list. There are many considerations to be made before changing your business model. Insurance is one of those considerations, and also one of the most important. Besides knowing what your policy covers do you know what it excludes?
By adding new services to your menu, you are changing the liability exposures of your business, especially those present under an insurance policy. While additional services or products may seem logical to you and the ever-expanding industry, they may present situations that require modification of your coverage. There may not be coverage, putting you at risk for a claim that will be denied due to a policy exclusion.
Adding new services does not mean that your current or future carrier will not want to insure you; it just means you should contact your agent to make sure you have appropriate coverage. Your agent’s goal is to make sure you have the coverage you need, and making changes midterm without advising them creates the potential for having inadequate coverage.
Make sure any new services you add are covered by your policy; many of the services being offered in tanning salons were not in place when policies were established. Cryotherapy, Laser Services, Nutritional Supplements and Fitness all carry risks very different from UV exposure. Your current coverage may not have been structured to anticipate the liability these new services create and you may need to add specific coverage or purchase additional coverage.
There are often costs involved with adding these additional services, and not just the cost of the equipment. Again, contact your agent to determine how you need to adjust your policy to protect your new investments. If your policy is written on a replacement cost basis, even your existing equipment needs to be insured for the amount it would take to purchase it new. Adding brand new equipment without changing your property limits might cause co-insurance penalties in the event of a loss. Now, you might be underinsured and have excluded exposures.
Some services require changes to the wording, pricing and conditions of your policy. If you discuss your ideas with your agent prior to moving forward with new services, they can give you an idea of expenses before making your decision. Oftentimes, accommodations need to be made or separate policies need to be found in order to give you the proper coverage. Before investing time and large amounts of money into a service that may not have coverage, give your agent a call. If your agent is informed of everything you are doing in your salon, there should be no surprises – for you as the business owner or for the insurance company – in the event you have any type of loss. The carrier might even provide risk management techniques and have recommendations for better protection.
It is important to be proactive and keep your specialized insurance agent informed of your operations. The ultimate goal is to make sure that you, as a business owner, are properly protected. When you keep your policy updated as changes occur, it will help ensure that exclusions or penalties do not apply. The worst call to make is the one to your agent after an incident happens, and you find out you are not covered.
