Risk Management: A Spa-Friendly Policy

Now that 50 is the new 40, and 40 is the new 30, baby boomers are always on the lookout for ways to slow the aging process. This look-good, feel-good generation is no stranger to indoor tanning salons, and it will continue to experiment with cutting-edge technology and services that will help in the quest for the fountain of youth.

I recently chatted with several baby boomers, and discovered they prefer to regularly make use of wellness centers, day spas and other salon services rather than undergo expensive surgeries or invasive procedures. This reveals that this generation is redefining the way we understand aging, health and beauty, and shows it is seeking much more than just an “instant pudding” approach.

For the indoor tanning industry, one of the wonderful things about individuals in this age group is that they are able to fuel the industry’s growth with a disposable income and a willingness to spend. As a result, many tanning salons are beginning to cater to the needs of their affluent clientele by incorporating a variety of specialty equipment and services.

Among the newer, most sought-after services are airbrush and spray tans, teeth whitening and the latest innovations in hydrotherapy and light therapy. Salon owners also are looking to dedicate rooms to estheticians, massage therapists, nail technicians and beauticians, and are purchasing or leasing new equipment to further enhance the salon experience for their clients.

All of these ancillary services take a basic salon to a whole new level—in fact, these salons quickly are becoming a one-stop source for skin- and beauty-related services. This allows salon owners to develop a more complete relationship with their clients and cater to those who appreciate the convenience of all the services they desire in one location, all while providing the salon with an additional revenue stream.

Offering these innovative services is a wonderful way to increase a salon’s bottom line. However, it is important to remember that the more professional services you offer, the more risk you take. As a salon owner, you are the one in charge of discussing the exposures with your insurance agent and ensuring that you and your staff have the necessary training and credentials to provide these services.

In order to protect yourself from the emotional and financial devastation that can be caused by a claim or lawsuit, it is essential to keep your insurance company up to date on all equipment, services and products available in your salon. Before adding any new services, you may wish to weigh the expense—and in some case, availability—of insurance against the potential income. Also determine if there are any local regulations that would apply; if so, you must research what kind of effect that might have on your ability to add the service.

Working with an insurance agent who specializes in the constantly evolving tanning industry is the best way to find peace of mind. They can advise you on the proper coverages for your very unique business. Advise your agent of all services provided in your salon, even if a service is only done occasionally. Yes, your premium may be higher, but it is far less expensive than paying a claim—or dealing with a lawsuit—that is not covered by your policy.

Once you have all the appropriate coverages in place, you can take a cue from your clients and relax.