Special Form And Named Form Property Coverage
Named form property insurance provides coverage for specific exposures such as fire or wind damage; while special form covers more causes of loss with certain exposures specifically limited or excluded on your policy. Generally speaking, the special form provides additional coverage—and at minimal increase in premium.
Burglary And Robbery
Salon owners often question the need for burglary coverage. Do not overlook the fact that there are many items which could be burglarized such as products, clothing, your register and that painting on the wall. Remember that in a burglary, there must be evidence of forced entry and merchandise or equipment taken. Conversely, robbery refers to the taking of cash from a facility by threatening an employee, most often at gun-or knife-point.
Fire Damage Legal Liability
This coverage relates to a liability exposure in which the salon owner is responsible for damages to the building due to his negligence. This peril does not cover damages to the salon’s equipment. A landlord often requests, in his lease agreement, for the tenant to insure this peril.
Short Rate vs. Pro Rate Cancellation
Insurance companies will cancel a policy pro rate without a penalty to the insured—normally for non-payment of premium or due to a salon going out of business. If a salon replaces coverage on their own behalf at mid-term, coverage might be canceled on a short rate basis subject to a penalty which equals 10 percent of the unearned premium.
Additional Insured And Loss Payee
Additional Insured refers to either the landlord of the building or a lessor of equipment who requests his interest added to a liability policy. A Loss Payee is a lien holder on equipment and is included on your property policy.
Business Liability
Business liablilty protects you against bodily injury lawsuits, such as a lawsuit claiming that a customer or visitor was injured while on the salon’s premises. Some of these are commonly called “trips and falls” or “slips and falls”. Business liability also provides protection against property damage claims; personal injury lawsuits involving libel or slander; claims arising from the physical eviction of a person while on your premises and/or claims of false arrest; and claims arising from false advertising.
Professional Liability
Professional liability protects you against accidents or negligent acts that might arise out of your professional services.. That is to say, professional liability might protect you against claims made by customers who suffer an injury due to overexposure, etc. However, manicurists and beauty salon owners sometimes make the mistake that their professional liability insurance will cover a tanning bed claim—it won’t. If you are uninsured, your personal assets could be at risk— including your car and home.
