Risk Management: Covering Your Bottom Line

Theft. Fire. Sunburns. Do these words—perhaps along with many others—instill fear in you as a salon owner? How about the cost of lawyers and legal fees these days? One claim could cost you thousands of dollars, as well as many sleepless nights. But these nightmares can be nearly eliminated just by protecting your bottom line.

Imagine the feeling of opening your salon and finding you had an unexpected—and uninvited—visitor the night before. Not only has the intruder stolen cash and receipts from the past two weeks because you kept meaning to get to the bank and never actually did, but he or she has also taken all of your lotions. And since they couldn’t take your pricey equipment, the unwelcome visitor vandalized all your tanning units. This is no way to start your day—and it could ruin your entire career in the industry.

A phone call in the middle of the night is always frightening, especially if it’s the alarm company advising you that your salon has gone up in flames. Unfortunately, this is one of the most common causes of loss for a business owner. Fires are started by many sources and often the cause is out of your control—such as an irresponsible neighboring tenant, lightning, vandals or, as we saw in late 2007 in California, area wildfires. But no matter the cause, you are the one left with nothing more than ashes and expenses.

Many of you have encountered that intimidating customer who demands to tan longer than you or your employee has recommended. It only takes one burned client to find your salon in the midst of a major lawsuit. Yes, they completed a waiver, which provides you some protection, but the waiver does not shield you 100 percent, and unfortunately, in today’s litigious society, chances are that the burned tanner will find a lawyer willing to represent them and put everything you’ve worked so hard for at risk. Even if they are unable to win the suit, you will need to spend a considerable amount of time away from your business—not to mention how much money you’ll spend on high legal fees.

On a positive note, there are simple actions you can take to help minimize these potential nightmares. Security systems are an inexpensive deterrent to burglars and also are early warning systems for fire. Thorough opening and closing procedure checklists are excellent tools to help minimize loss. The checklists should include putting away stock, leaving only start-up money in the cash drawer, turning lights on and off, closing valves to washers and spray tan units, and setting the alarm. Make sure your electrical is up to local code and maintained properly. And remember to just say no when clients try to tell you how to run your business. Yes, you might lose them as customers, but you more than likely will be preventing a potentially devastating claim.

But, even with all of these measures in place, business owners can find themselves suffering a loss. The best way to protect your investment is to purchase the appropriate insurance coverage.

Work with an agent familiar with the tanning industry, who can tailor coverage to your individual needs. Make sure you advise your agent of all the particular services that you currently provide or are thinking about adding, as well as any special limits or coverage needs your landlord might require. Also give the agent appropriate values for your equipment and income.

Once you have adequate coverage in place, you can rest easy knowing that you have shifted the burden of covered losses to your insurance company and reduced your exposure. 

For more information or to get a quick, no-obligation quote, call (800) 844-2101 or visit www.universalinsuranceltd.com.