The Importance Of Professional Liability Coverage

The Importance Of Professional Liability Coverage
Protect Your Salon From Costly Litigation

Over the years, the indoor tanning industry has been the basis for a number of urban legends. Tales ranging from a woman falling asleep in a tanning bed and frying her organs to people actually catching on fire in a tanning bed have become fodder for the imagination.

As professionals it's easy to separate the fact from fiction; unfortunately, the public many times cannot. Regardless, injuries can occur in a tanning salon. People who do not tan responsibly can be at risk of receiving injuries including sunburns, premature skin aging, cataracts and other eye and skin diseases. Some injuries have been caused by operator error in underestimating or overestimating the amount of UVR being released during the tanning session. Sometimes customers who obtain these types of injuries from tanning beds try to hold the salon owner liable by filing a lawsuit.

Litigation is never fun and can be a major threat to the livelihood of your salon. Responsible salon owners can reduce the risk of loss if they educate and protect customers from possible injuries and disease transmissions and have proper insurance coverage for their business.

When trying to avoid injury it is essential to figure your customer's desirable tanning time by using a skin typing method. Tanning salons should have a routine system in place to identify the different skin types that range from Skin Type 1 up to Skin Type 6. No matter what skin typing system your salon uses, matching skin type to the manufacturer's listed tanning schedule is an essential element in starting an effective tanning program. LOOKING FIT's annual Fact Book addresses the subject of skin typing and photosensitive reactions. You can access this information online at www.lookingfit.com.

However, what do you do when you've taken all the proper precautions and clients still file suits against you because they feel that your salon led to their injury? One of the most essential coverages salon insurance provides to protect you and your business is professional liability. Securing adequate professional liability insurance is highly important for salon owners whose services pose a risk of injury to their customers.

Liabilities can stem from the actions of your employees, non-compliance with governmental regulations, the sale of equipment, and maintenance of your premises and equipment. Some sources of liability are unique to the tanning industry, while others are not; nevertheless, it is important for you, as a salon owner, to be aware of these potential loss exposures when setting up and operating your business.

Professional liability protects you against any accidents or negligent acts that may arise out of your professional services. For example, professional liability protects you against claims made by customers who have suffered burns from overexposure or who have had a photosensitive reaction to a lotion. Manicurists and beauty salon owners sometimes make the mistake that their professional liability insurance will cover a tanning-bed claim; however, it won't, and if you are uninsured, your personal assets could be at risk including your car and home.

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 have been common. Therefore, a legal liability limit of $1 million no longer can 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 you about your real-life insurance requirements. For more information about specialized tanning salon insurance coverages contact Universal Insurance Facilities, Ltd., P.O. Box 40079, Phoenix, AZ 85067-0079, (800) 844-2101, Fax: (480) 970-6240 or www.vpico.com/universal.