The most highly anticipated time of year is fast approaching – busy season! Many forward-thinking salon owners are evaluating their salons and deciding what changes or improvements can be made to accommodate the anticipated increase in customer traffic. Some are doing a cosmetic facelift to update their salon’s appearance. Some are adding upgraded equipment or new services. Some are deciding if this is the time to add a new retail line. And, at the very least, most owners are increasing the amount of lotions they keep on hand.
All of this is very exciting. So, now let’s talk about the aspect that many business owners forget to address: protecting your interests. Chances are if you are making any of these changes, you will be adding to the value of your salon, not only in terms of marketing but in the dollar amount it would take to replace everything were you to suffer a loss.
[callout]Any time you make changes at your salon, it is to your benefit to discuss them with your specialized insurance agent.[/callout]Any time you make changes at your salon, it is to your benefit to discuss them with your specialized insurance agent, who is best positioned to assist you in making the necessary changes to your policy to ensure adequate coverage in the event of a covered loss. If your policy is written on a replacement cost basis, it is important to remember that the valuation of your salon should be made using the actual cost to replace everything in your salon if you had to buy it brand new. And if you have a coinsurance on your policy, it is even more important to carry the correct limit because if you increase substantially in value and don’t increase your limit, you could suffer a penalty, even if only a portion of your salon is damaged.
You should also discuss any addition of services with your insurance agent prior to placing them on your menu. Some services may not currently be covered under your policy, but other services can be added – sometimes for an additional charge. There may be services you are contemplating that cannot be added to your current policy. In this case, your agent may be able to assist you in obtaining the necessary coverage.
If you are adding retail items, they can quickly add up in terms of value and, depending on the types of items sold, may impact your policy. And, stay away from those designer knock-offs! They may be big sellers that look great, but they are not worth the risk of a copyright claim.
Remember, insurance is not a once-a-year thing. Your policy is issued based on your salon operation at the time of the issuance. The limits and terms may not be appropriate for the policy’s full term if your operation changes in any way. It’s better to be proactive and find out what policy additions are needed than to learn about a deficiency at the time of loss.
Remember, you should have a good working relationship with your insurance agent. Give them a call and talk about the exciting things going on in your business and let them help you with risk management. Work together as a team! ■
