Looking Fit 06/2004: A Q & A With Universal Insurance

A tanning salon has many special aspects that differ from other businesses, and those aspects should be considered when purchasing insurance.

Consider working with a tanning insurance specialist who is experienced and knowledgeable in both the tanning and insurance industries.

While most standard policies provide coverage for the property and business liability, a tanning insurance specialist can offer specialized coverages that guard against hazards that only surface in the indoor tanning industry. A tanning salon insurance specialist can suggest specialized coverages at a reasonable premium and provide fast and fair claims handling when needed.

BOP is short for business owners policy, which is a package policy that provides property and business liability insurance along with many important coverages tailored for the salon.

Property coverage protects the building and its contents against direct physical loss or damage from covered perils such as fire and vandalism.

Business liability could provide coverage for bodily injury or property damage claims that occur at the salon. An injury from a visitor’s slip and fall on the premises is an example of a business liability claim.

Professional liability insurance is important for salon owners whose services pose a risk of injury to customers. Professional liability protects a salon against any accidents or negligent acts that may arise out of its professional services. For example, professional liability protects a salon against claims made by customers who have suffered burns from overexposure or had a photosensitive reaction after tanning in the salon.

An aggregate is the maximum limit of coverage available under a liability policy during a specified period of time, regardless of the number of separate covered losses that may occur or the number of claims made. If a salon owner purchases a policy with liability coverage of $500,000 per occurrence with an aggregate of $1 million, the insurance might pay up to $500,000 for each covered loss as long as the losses do not exceed the maximum amount of $1 million during the policy period. It is a good incentive to do everything possible to reduce the risk of liability to avoid going over the aggregate limit.

Most insurance policies cover the actual replacement cost of the equipment in the event of fire or other disaster as long as the equipment is included in the business’s personal property.

Product liability is a coverage that provides protection against claims arising out of the use of product. For example, if a customer has an allergic reaction to a sunless solution that is sprayed on his or her body, he or she might decide to sue the salon. In this case, product liability would be a beneficial coverage for the salon to have.

Many states have specific laws regarding age limits. For example, Ohio rules require a salon operator to obtain written consent from a parent or legal guardian prior to tanning anyone under 16 years old. Tanners over age 16 and under age 18 must obtain the same written consent as if they were under age 16 unless they posses a valid driver’s license or state identification card. This written consent must be signed at the tanning salon and must specify the number of sessions consented to and must become part of the tanner’s record. A list of state regulatory offices is available at www.tanningtraining.com.