Looking Fit 03/2004: Choosing Tanning Salon Insurance

CHOOSING TANNING SALON INSURANCE

Most tanning salon owners would agree that securing insurance is one of the basic costs of doing business. While insurance is a wise investment for any tanning salon, it can become costly if the owner fails to do a little homework. The indoor tanning industry is unique because it has technical, legal and financial aspects not common in other businesses. Therefore, salon owners should have coverage designed to meet their special needs.

A tanning salon insurance specialist can provide a salon with a business owner’s policy that incorporates coverages for the unique aspects at affordable prices. While most standard policies provide coverage for the actual building, business personal property and business liability, a tanning insurance policy typically offers special coverages and endorsements to help guard against issues and hazards that only surface in the indoor tanning industry.

Liability is continual risk for tanning salons. Some sources of liability are unique to the tanning industry while others are not. Professional liability is a unique coverage that protects against any accidents or negligent acts that may arise out of a salon’s professional services. For example, professional liability protects the salon against claims made by customers who have suffered burns from overexposure or who have had a photosensitive reaction to a lotion. An injured party may seek damages to recover out-of-pocket expenses for medical care and medications, lost wages, property damage, pain and suffering, disfigurement, and even the loss of the capacity to enjoy life.

Higher limits of liability are readily available for tanning salon owners at reasonable rates. Insurance companies can upgrade a salon’s professional liability limit from $500,000 to $1 million for just a few hundred dollars per year on average.

Business interruption insurance coverage protects income against any business interruption that may occur after a covered cause of loss. Salon owners should look for a policy that also offers protection against the covered extra expenses incurred as they attempt to continue normal business operations.

Crime coverage can protect salon owners against losses from robbery, burglary, theft, embezzlement and other risks and can be tailored to fit the size and scope of the salon. In most cases, a business property and liability package policy can be endorsed to provide coverage against employee dishonesty, as well as the loss of money and securities from the premises and the loss of other covered business property such as computers.

Glass and sign coverage also is available for salon owners. If a salon’s signage is damaged during a wind storm or a glass window is broken during a burglary, this policy will cover the replacement cost to fix the damaged item or items. This coverage will cover glass and signage whether the salon owner owns or is held legally liable for the property.

When it is time to purchase a policy, smart salon owners should work with a quality insurance company with a strong financial rating. The rating indicates the company’s financial ability to pay out future claims and benefits. A company or agency’s financial rating can be researched through agencies such as A.M. Best, which provides an independent opinion of a company’s strength based on a series of financial evaluations. Most tanning salon insurance specialists will work with a local agent.

Salon owners new to the industry can contact the Indoor Tanning Association for salon insurance information and referrals. Training programs, such as those offered by the National Tanning Training Institute, also can help locate reputable insurance providers.