Insurance can be confusing, but it is a vital process as a business owner, and it is crucial to find the right professional to assist you with your insurance needs. Ultimately, you want an insurance company that has financial strength—that is the cornerstone of their promise to you as a policyholder, and will dictate how thoroughly the company can assist you in the event of a claim.
The easiest way to determine a company’s industry rating is to check a rating report on an independent industry analyst. Try the A.M. Best Ratings, which range from A++ (superior) to F (in liquidation). A.M. Best is one of the most highly regarded insurance rating services, and the company you choose should have an A.M. Best rating of “A” or better. While this is not a guarantee of a company’s financial strength, it is a great indictor that the company is financially solid, has a good reputation in the marketplace and will provide prompt and fair claims-handling today and in the future.
Also find out if your insurance company is licensed as an “admitted” or “non-admitted” carrier. An admitted carrier is protected by the state’s insurance funds in the event that the insurance company becomes insolvent; non-admitted carriers are not protected by these state funds. Finally, your provider should be known for fair and fast claims services. You don’t want to find out after the fact that your carrier has a history of poor claims handling. Ask your insurance agent if the carrier that they represent has a claims staff that is knowledgeable in the tanning industry. Check the following when choosing an insurance professional:
- Familiar with the indoor tanning industry, including the unique types of coverage that address a salon.
- Able to help you decide what types of coverage you need in regard to limits and deductibles.
- Has a positive referral from others in the industry.
Of course, the premium will be important—but make sure you have adequate coverage.
Choosing an insurance professional comes down to how comfortable you are with your broker or agent and how confident you are in his or her ability to secure the protection you need now and as your business continues to grows and change. With you as the expert in your business and your insurance professional as the expert in their department, you can feel confident that you will form a great team.
Renewals
Now that you have made it through another year—hopefully without any losses—it is time to reevaluate your insurance coverage and see what needs to be updated. Do your limits still fit the needs of your salon? Have your contents increased over the year? Have you paid off a loan that no longer needs to be added to an AI? Are you expanding or adding on to the salon? Are you hiring more employees? Do you need employee dishonest coverage?
Spend the time to walk through these questions with your insurance agent each year so you won’t be surprised at the time of loss.
