Accidents can and do occur. If someone at your salon suffers an injury, take immediate action by calling an ambulance. Next, document all known facts surrounding the accident to accurately reconstruct the events in case of a lawsuit. For safety’s sake, be sure to get all of the following information in writing:
- Name, address and phone number of the injured party
- Date and time of the accident
- Names of employees on duty
- Names and phone numbers of any witnesses
- Details regarding the cause of the accident
It also is a good idea to take pictures or video recordings of the site where the accident occurred. Try to get a written statement from the injured party. If a trip to the hospital is necessary, call an ambulance—don’t use a personal or company vehicle. You may expose yourself to a whole new set of liabilities that is much better avoided.
Follow a similar set of steps if a loss occurs, such as a fire or wind damage to your salon. Protect yourself and your employees as the first order of business. If you must evacuate, don’t return to the salon until you are told it is safe by the authorities. Contact your insurance company as soon as is reasonably possible. When you do return, take photos and inventory the damaged items. Again, always pay attention so as to avoid any injuries.
Limiting Liability Exposure
To help avoid losses in the future, implement practices and procedures that will limit the potential for liability now. Also make sure all employees follow these procedures and understand their importance.
Carefully review warning and safety procedures with all new clients. Make sure every client is aware of the risks that exist and the potential for risks we may not yet know about. At the same time, take this opportunity to explain the mechanisms and procedures that are in place to reduce these risks, such as protective eyewear and timers. Be sure that each customer understands their role as a tanner at your salon.
Secure written proof that customers have been fully warned of the risks. You want to document that you have advised your customer that various risks might exist and that your customer consented to proceed with service only after reviewing the risks.
Skin type all customers to determine appropriate exposure times and procure other necessary information before allowing them to tan. Salon staff should limit the length of time that a person spends exposed to UV light based on their skin type. In addition, it is vital for all tanners to disclose their medical and tanning history before being allowed to tan indoors—and be sure your staff knows how to say “no” to tanners that want to stay in longer then their skin type allows. Whenever possible, have customers sign clearly worded releases of liability, as this can help deter litigation. Also be sure to keep accurate records of clients coming in and out of the salon. Watch out for customers that demand longer session times and too-frequent visits.
Follow-up with staff regarding the methods of operation and ensure they are meeting your standards. Have staff training sessions and keep records of them. Ensure staff regularly inspects equipment and the salon. The salon always should look tidy, as this is the first chance your salon has to make an impression on potential clients, and is inspires confidence in current clients.
Consult with attorneys to assess risks before liability attaches. It’s the pay-me-now or pay-me-later principle, but if you wait until later, you will probably have to pay more. Learn to use your legal help effectively—discuss fees openly and confirm arrangements ahead of time in writing.
Invest in professional training. There are several different professional training programs available for this industry. These training programs help you and your employees learn about the industry and how to be more efficient in your everyday environment. Many of the programs are easily accessible and reasonably priced, and everyone who works in your salon should participate in some form of training. As a bonus, this usually entitles you to a discount on your premium when you work with an agent that specializes in the industry.
Use computer-controlled bed timers. Timers are an innovative, safe and secure way to run your salon because they give you control over each person who tans. When choosing a system, know that you will be saving money on your insurance, as most agents in the industry are able to give credits when computer-controlled bed timers are used. Token timers do not have the same effect, however, because your staff is not able to monitor use or time.
Be aware of how add-on services affect your coverage. Tanning salon owners continually find new and inventive ways to generate new business and increase their bottom line, usually by offering ancillary services. However, you must keep in mind that adding services also adds more exposure to a salon; consult your insurance agent to make sure there is coverage for the services you have in mind prior to adding them.
Ensure you are protected when working with independent contractors. Although independent contractors rent space in a salon and provide services at their own risk, you can still be held liable should anything happen. Be sure that all contractors have their own insurance and request a copy of their policy. Also ask your insurance agent about coverage for yourself in case a customer is injured during the course of the contractor’s service and decides to name your salon in a liability suit.
Create a written maintenance program listing set opening and closing procedures. Provide a maintenance record form for each section of the salon—this makes it easy to record the date, description of work and the name of the person who serviced the item. This form can include lamp changes, bed timer tests, electrical installation and repairs. Checklists are an easy and quick way to keep your salon in order. Ask your insurance professional for some tips on this—you will find them to be a great resource.
Factors That Affect Your Premium
Number of tanning beds. As you might imagine, a larger salon has more exposure and will pay more on an insurance premium. This is because most professional liability policies base the premium on the total number of units in the salon. There should be a discussion regarding UV units, facial units and spray-on units. Also keep in mind that some insurance programs offer discounts for multi-location salons or single-location salons that are very large.
Ancillary services and products. Make sure to protect your salon against additional liability exposures that result from ancillary services provided at your salon. Any ancillary service and/or product should be discussed with your insurance professional prior to adding it to the salon. It also is important for you to recognize that you and your salon can be brought into a legal situation, even if the ancillary service personnel is comprised of independent contractors who are not your employees. This is because the clients will receive services at your business.
Square footage of salon. Again, the larger the salon, the more exposure—and some general liability policy premiums charge based on square footage.
Contents value. Business personal property insurance (often known as contents) is needed for everything in the salon, including lotions, equipment, improvements & betterments.
Distance to the nearest fire station/hydrants. The speed with which a fire department can respond is a critical part of premium rating. Many salon owners are surprised to hear that the property premium is often based on “protection class,” which is determined based on the number and proximity of fire hydrants and staffed fire stations. A salon in a rural area with no clear water source and a volunteer fire department will pay considerably more for the property portion of the premium than a salon in a city with fire hydrants nearby and a manned fire station down the road.
Construction type and age of building. A salon in a frame or stucco building will pay more on its insurance premium than one in a brick or noncombustible building. The age of the building also is taken into consideration. If a salon is located in a suite of an older building, the insurance company will ask about updates to electric, roof, plumbing and HVAC.
Salon location and neighboring exposures. Location, location, location. You will want your salon to be located in a safe environment for you, your employees and your clients—and your insurance company will respond favorably to that decision. It is alarming how many salons are broken into, therefore, choosing a safe location with good neighbors is a win-win situation.
Alarm systems. A great deterrent to break-ins is a central station alarm system. The products that you carry in your salon are desirable to burglars and many salons have those products enticingly displayed in their lobbies, visible to the public. An alarm system will make a difference—display the sticker showing you have the system installed in visible places. Most insurance companies offer a premium discount for this protective device.
Sprinkler systems. Many new strip malls and shopping centers are required to install sprinkler systems in their buildings, and a salon can benefit from a reduced property premium if there is a system in place.
Experience. Business experience makes a difference. Owning and operating a business isn’t easy, and while many salon owners are new to the industry, previous business experience will help in the development of a business plan and a well-run salon. Insurance companies recognize the importance.
Loss history. Losses are bound to happen. An insurance company will ask for your prior loss history and will look for trends in frequency and severity. For example, a break-in that occurred a few years ago will not be looked at adversely if the salon installed a central station alarm after the loss. A series of break-ins year after year, however, might make the insurance company decline even to look at the salon—or they will charge a considerable premium and apply a high deductible. Openly discuss previous claims with your insurance professional and look to them for an insurance solution that is fair to all.
