The Importance Of Professional Liability Coverage
by John Roark
Litigation can be a major threat to the livelihood of the tanning salon. Even if the owner has taken all of the proper precautions, a client still could file suit against him or her claiming the salon led to injury. Professional liability is one of the most-essential coverages for protecting owners and their businesses. Securing adequate professional-liability insurance is vital for salon owners whose services pose a risk of injury to customers.
Liabilities can stem from the actions of employees, non-compliance with governmental regulations, the sale of equipment, and maintenance of the premises and equipment. Some sources of liability are unique to the tanning industry, while others are not; nevertheless, it is important for salon owners to be aware of these potential loss exposures when setting up and operating the business.
People who tan irresponsibly can be at risk of injuries including sunburn, premature skin aging, cataracts and other eye and skin diseases. Injuries also can be caused by operator error in underestimating or overestimating the amount of UVB being released during the tanning session. Customers who suffer injuries from tanning beds can attempt to hold the salon owner liable by filing a lawsuit.
Professional liability protects the salon against any accidents or negligent acts that may arise out of its professional services. For example, professional liability protects against claims made by customers who have suffered burns from overexposure. Manicurists and beauty-salon owners sometimes mistakenly believe their professional-liability insurance will cover a tanning-bed claim; however, the professional service of tanning often is specifically excluded from other policies.
In view of increased litigation and skyrocketing jury awards, many salon owners today are carrying higher limits of coverage. In some states, an injured party only can recover compensatory damages, but other states may award punitive damages as well.
An injured party may seek compensatory 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.
A business may seek to recover lost profits and out-of-pocket expenses. In the absence of statutes, determining the monetary amount of damages usually is left to the courts and their juries. In recent years, awards of $1 million or more are not uncommon. Therefore, a legal-liability limit of $1 million can no longer be considered excessive, even for the smallest salon.
On a positive note, 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. Group purchasing power has put higher limits of liability within the reach of many salon owners previously unable to afford the increased coverage.
Agents and underwriters can advise salon owners about their real-life insurance requirements. For more information about specialized tanning-salon insurance coverages, write Universal Insurance Facilities, Ltd. at P.O. Box 33409, Phoenix, AZ 85067-3409; call (800) 844-2101; fax (480) 970-6240; or visit www.universalinsuranceltd.com.
