Basic Insurance Coverage:

Basic Insurance Coverage:
What You Need To Protect Your Business

Choosing the insurance coverages that are right for you shouldn't be a painful or confusing process. As a responsible salon owner, you'll need to secure adequate insurance protection to protect both yourself and your business. At the very least, you will need a basic Business Owners Policy to guard against harm. Most Business Owners Policies provide three major types of coverage--fire, business interruption and business liability.

Fire

Fire insurance protects your buildings and/or business personal property from the perils of fire and lightning. The policy must further cover causes of loss such as windstorm, hail, smoke, explosion, vandalism and malicious mischief.

Keep in mind that other coverages will be needed to protect your accounting records, computers, software programs, money and checks on hand. A good bet is to secure a special property coverage form on an "all risks" replacement cost basis.

Business Interruption

Business interruption insurance protects your income against any business interruption that may occur after a covered cause of loss. You should look for a policy that also offers protection against the covered extra expenses you incur as you attempt to continue your normal business operations.

Typically, coverage is limited to the actual length of time required to rebuild, repair or replace your damaged building or business personal property, with payment based upon the net profit the business would have generated.

Business Liability

Business liability pays those sums that you become legally obligated to pay if a judgment is held against you. Some of the more common liability exposures include injuries suffered by customers while on your premises (such as trips and falls), property damage and personal injury lawsuits involving libel, slander, physical eviction of a person, or false arrest.

In addition to the basic Business Owners coverages, there is one other very special coverage that should be considered a must for indoor tanning salon owners--Professional Liability, which protects you against claims made against your professional services.

Every salon owner needs professional liability insurance. For example, if one of your customers suffers burns from overexposure, or has a photosensitive reaction, professional liability will protect you against any claims he or she may make if, in the event of a lawsuit, you are found to be negligent. Since personal injury claims easily can run into hundreds of thousands of dollars, professional liability coverage should be considered mandatory for every salon owner.

In addition to Business Owners Insurance and Professional Liability, there are a variety of specialized coverages and endorsements you should consider adding to your policy. These include Building coverage; Business Personal Property coverage; Replacement Cost coverage; Business Income coverage; Extra Expense coverage; Valuable Papers coverage; Accounts Receivable coverage; Computer Equipment coverage; Money and Securities coverage; Glass coverage; Signs coverage; Premises Liability coverage; Product Liability coverage; Personal Injury Liability coverage; Fire Legal Liability coverage; and, Medical Payments coverage.

We'll take an in-depth look at these particular coverages in a later issue; in the meantime, check with your agent or broker to ensure that your present coverage is adequate to meet your needs.

No matter how large or small your salon may be, securing adequate coverage is essential for protecting your business and your peace of mind. Universal Insurance Facilities, Ltd. offers a complete package of coverages specifically designed to meet the unique needs of the indoor tanning industry.

Universal's program is underwritten by the American International Group (AIG), one of the world's largest commercial insurance and financial services organizations. Rated A++ (Superior) by A.M. Best Company. For more information, or to get a quick, no-obligation quote, contact Universal Insurance Facilities, Ltd., P.O. Box 40079, Phoenix, AZ 85067-0079, (800) 844-2101, Fax: (480) 970-6240, e-mail: uif@vpico.com, www.vpico.com/universal.