Is there truth in the saying, “Greater risk equals greater reward?” Well, we know that there are risks involved with running your own business. But, we also know that it can be extremely rewarding and lucrative for those with the right business model and business practices.
Salon operators can find themselves asking many “what if” questions – in our office, much of our day is spent trying to ease people’s minds. A topic that’s not always pleasant to discuss, but is definitely easy to work through, is insurance coverage. The peace of mind it can give can be considered priceless.
Let’s go over some scary and not-so-fun scenarios that do happen, and why it is so imperative to have the appropriate coverage in those circumstances.
Many “what ifs” are out of your control; but many exposures are coverable with proper risk management techniques.
Imagine the feeling of unlocking the door of your salon in the morning and finding that you had an unexpected and uninvited visitor the night before. Not only has the intruder stolen the cash and receipts from your drawer, but also cleaned out the entire product inventory from your shelves. Since the intruder could not as easily take your pricey tanning units from the premises, they decided, instead, to vandalize them.
Now, imagine that your salon has been destroyed by fire. Fires are started by many sources and unfortunately, are one of the most common causes of business loss. Oftentimes, the cause is out of your control; but no matter how it is started, you are the one left with nothing more than a mess to clean up and expenses to pay.
Fire damage is typically considered a covered loss, regardless of the cause. This is a time when insurance comes into play. Make sure that your business insurance policy has adequate limits and includes replacement cost. Business interruption coverage is also important and is designed to help minimize your risk. Check to make sure that your policy has this and includes extra expense.
Here’s another scenario: in walks the one-time price-shopper who demands a tanning session that is longer than what you or your staff have recommended. Or, it’s the irresponsible tanner who visits other salons in addition to yours. These people then claim injury due to overexposure, and you, the salon owner, find yourself in need of good insurance coverage. This is when Professional Liability is needed. Make sure that the Professional Liability includes UV exposure, and if you offer other professional services, that the policy covers them, as well.
Once you sign a lease agreement for your business space, you – or your legal entity – are open to greater exposure. While most landlords are responsible for the building structure, tenants are responsible for the property inside their business. This property is called “contents” and it may include improvements you make, depending on what your lease dictates.
Protect yourself and your investment! Many of these “what ifs” are out of your control; but many of these exposures are coverable with proper insurance and risk management techniques. Be sure to work with an agent who specializes in and has years of experience with tanning businesses – these agents are able to tailor coverage to your needs. It’s important to advise your agent of all the services that you currently provide and plan to provide in the future, as well as any requirements of your landlord. Make sure that your limits and values are accurate, especially in regard to your equipment and income. Remember – this is your livelihood at stake, and even the best-managed business can suffer loss.
Appropriate insurance coverage puts the burden on your insurance provider, reduces your exposure, and at last, lets you rest easy.
