Risk Management: Limiting Your Exposure

To help avoid losses in the future, implement practices and procedures that will limit the potential for liability now. Also make sure all employees follow these procedures and understand their importance.

A. Carefully review warning and safety procedures with all new clients. Make sure every client is aware of the risks that exist and the potential for risks we may not yet know about. At the same time, take this opportunity to explain the mechanisms and procedures that are in place to reduce these risks, such as protective eyewear and timers. Be sure that each customer understands their role as a tanner at your salon.

B. Secure written proof that customers have been fully warned of the risks. You want to document that you have advised your customer that various risks might exist and that your customer consented to proceed with service only after reviewing the risks.

C. Skin type all customers to determine appropriate exposure times and procure other necessary information before allowing them to tan. Salon staff should limit the length of time that a person spends exposed to UV light based on their skin type. In addition, it is vital for all tanners to disclose their medical and tanning history before being allowed to tan indoors—and be sure your staff knows how to say "no" to tanners that want to stay in longer then their skin type allows. Whenever possible, have customers sign clearly worded releases of liability, as this can help deter litigation. Also be sure to keep accurate records of clients coming in and out of the salon. Watch out for customers that demand longer session times and too-frequent visits.

D. Follow-up with staff regarding the methods of operation and ensure they are meeting your standards. Have staff training sessions and keep records of them. Ensure staff regularly inspects equipment and the salon. The salon always should look tidy, as this is the first chance your salon has to make an impression on potential clients, and is inspires confidence in current clients.

E. Consult with attorneys to assess risks before liability attaches. It’s the pay-me-now or pay-me-later principle, but if you wait until later, you will probably have to pay more. Learn to use your legal help effectively—discuss fees openly and confirm arrangements ahead of time in writing.

F. Invest in professional training. There are several different professional training programs available for this industry. These training programs help you and your employees learn about the industry and how to be more efficient in your everyday environment. Many of the programs are easily accessible and reasonably priced, and everyone who works in your salon should participate in some form of training. As a bonus, this usually entitles you to a discount on your premium when you work with an agent that specializes in the industry.

G. Computer-controlled bed timers are an innovative, safe and secure way to run your salon because they give you control over each person who tans. When choosing a system, know that you will be saving money on your insurance, as most agents in the industry are able to give credits when computer-controlled bed timers are used. Token timers do not have the same effect, however, because your staff is not able to monitor use or time.

H. Tanning salon owners continually find new and inventive ways to generate new business and increase their bottom line, usually by offering ancillary services. However, you must keep in mind that adding services also adds more exposure to a salon; consult your insurance agent to make sure there is coverage for the services you have in mind prior to adding them.

I. Although independent contractors rent space in a salon and provide services at their own risk, you can still be held liable should anything happen. Be sure that all contractors have their own insurance and request a copy of their policy. Also ask your insurance agent about coverage for yourself in case a customer is injured during the course of the contractor’s service and decides to name your salon in a liability suit.

J. A written maintenance program should be in place listing set opening and closing procedures. Provide a maintenance record form for each section of the salon—this makes it easy to record the date, description of work and the name of the person who serviced the item. This form can include lamp changes, bed timer tests, electrical installation and repairs. Checklists are an easy and quick way to keep your salon in order. Ask your insurance professional for some tips on this—you will find them to be a great resource.