This economic crunch seems to be affecting everyone—especially the smaller, self-owned and -operated businesses. With the rising fuel prices, many people are cutting back on “luxury” expenses, and salon owners nationwide are working to ensure that visits to the tanning salon do not fall under that category. To do this, you may be thinking of remodeling, adding new equipment or services, or selling extra retail items. Of course, whatever you do, your insurance costs will go up. Here are some ways to control the additional expenses without leaving yourself vulnerable.
Check Your Policy—Insurance companies show preference toward services with reduced risk by offering less-expensive premiums. Think about this in terms of choosing between adding laser treatments or hiring a masseuse. Laser treatments are excluded from most policies, which means that adding a massage therapist—something easily endorsed onto a policy—might be the better option.
Compare Companies—There are specialized insurance companies for the tanning industry, and each offers competitive prices. Don’t assume that “specialized” means that it will cost you more.
Assess Necessary Coverage—Determine what losses your company can sustain outside the necessary professional liability, business personal property and general liability coverages. If possible, you may want to consider changing your coverage so that it is specific to the risks of your salon.
Consider Increasing Deductibles—This may help lower your bottom line at a time when every dollar counts; just make sure that if a loss does occur, you can afford that higher deductible.
Jenny Bortman is an account executive for Phoenix-based Universal Insurance. For more information or to get a quick, no-obligation quote, call (800) 844-2101 or visit www.universalinsuranceltd.com.
