Keeping Your Insurance Costs Under Control
Do Some Research
Your first step toward controlling your insurance costs begins with networking. Start by asking other tanning salon owners whom they insure with and if they are satisfied with their insurance company's service, coverages and premiums.
Ask them how their insurance company has responded to any claims they may have filed. You can call (800) 424-BEST if you have questions about a particular insurance company's financial rating. A.M. Best is the nation's leading independent insurance rating firm, and a top rating from them is a strong indicator that your insurance company will be there when you need them.
Seek Out A Specialty Insurance Agency
You can save premium dollars and get better coverage by shopping with a specialty insurance agency which usually can provide the industry-specific coverages you need to protect your salon--often at very competitive rates.
Because they are familiar with the various exposures inherent in indoor tanning, specialty agencies usually are able to recommend measures that can help you guard against losses, as well as suggest ways to invest your insurance dollars where they will do the most good.
Look At Claims Performance
Your annual insurance premium can vary by hundreds of dollars depending on your salons geographic location, unique exposures, the coverages and limits you choose, and the insurance company that underwrites your policy.
When comparing rates, remember that claims performance is the make or break factor that separates a great insurance company from a merely good one; balance any potential savings against the reputation of a company that has a history of poor claims handling or one whose financial standing may be questionable.
Evaluate Your Coverages
Every tanning salon owner needs to evaluate his or her insurance coverages, applicable limits and any policy exclusions at least once each year.
To find out if your current coverages are adequate, ask your insurance agent about the kinds of claims that have been filed against other salon owners over the past year, the awards that have been made by juries and the circumstances. Evaluate your risk tolerance and make sure your coverage protects you at least to that point in case of a loss.
Finance Your Coverage
As a hedge against an income slump during your off-season months, consider an insurance company that offers financing on qualified premiums. This allows you to spread your premium payments over the course of the policy year to suit your cash flow.
Ask For All Available Credits
Many insurance companies can offer a more attractive premium to their clients who have implemented loss-control measures. The installation of dead bolts, burglar alarms, smoke detectors, fire doors, fire extinguishers and sprinkler systems should assure you of one or more discounts (in addition to better protecting you and your business).
Note that loss-control measures needn't always be expensive--taking pro-active actions such as storing copies of valuable papers off-site may result in savings, as well as reduce your chances of suffering a loss and having to file a claim.
Practice Safety
Keep in mind that a careless employee can create a potentially dangerous situation in an instant in the normal course of his or her work. For example, what happens if a client slips on a wet floor that the employee left unattended for a few minutes while mopping up? Courts can-- and will--hold management responsible for the actions of their employees in these situations.
A pro-active response is imperative to help minimize your risk (in this case by posting a Caution! Slippery When Wet sign in the area being cleaned). You may qualify for a lower premium if you have an accident-free workplace history.
Choose Higher Deductibles
Choosing a larger deductible sometimes can be an easy way to lower your premium, since you agree to assume a greater share of the risk. Your agent or broker can advise you on the amount of savings to expect. Just don't allow the idea of additional savings to cloud your business judgment; be sure to choose a deductible that won't wipe out your savings if you suffer a loss.
No matter how large or small your salon, 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
