Ask for referrals when choosing an insurance broker/company. By
selecting a company with spa experience, you can take advantage of its
expertise, potentially saving time and money.
Your broker should know you and your business. Have your broker
tour your space, and help you determine potential hazards and
When you receive your policy, review it. Joe Delucchi of CAL-Insurance
in San Franciso says, “If you don’t understand your policy, ask
questions. Read through the entire policy, and make sure it represents
Consider Employment Practice Liability (EPLI). For business owners
with employees: “EPLI responds to allegations of ... wrongful termination,
discrimination and harassment,” Delucchi says.
Consider crime coverage. If your spa manages numerous services and handles
a large cash flow, you might want to think about crime coverage. This type of
policy covers embezzlement of your business’s money.
Send the insurance company a copy of your menu of services. When you
change your menu, send an updated copy to your broker and be sure to document
Take pictures. Photograph your space and equipment, and store these photos in a
place that you can access if your spa is damaged. Some insurance companies will
store them for you.
If your state requires a license, your insurance company will probably expect
the same. In most cases, unlicensed activity will not be covered by your professional
liability insurance. Tip: An expired licensed is considered unlicensed activity.
Have dedicated circuits where necessary. Frayed extension
cords, overloaded circuits and damaged equipment are all
potential fire hazards. Tip: Spa candles create a calm ambiance
but, when left unattended, can cause expensive damage.
Employees may not be covered by the spa. Check your spa’s policy.
If you provide on-location, contract or freelance services, you’ll also
want to look into getting your own individual policy.
Founder and owner
of the San Francisco Institute of
Esthetics and Cosmetology since
2002, Deedee Crossett will be
speaking on “ 10 Things You
Can Do to Motivate Your Team and
Grow Your Business” during the
Advanced Education Conference
Program at Face & Body® Northern
California in San Jose, CA, on Saturday,
August 23! Register today at
10 THINGS YOU CAN DO
TO MINIMIZE RISK
Insurance doesn’t matter ... until it does! Following are 10 things you can do to
minimize your risk and choose the insurance policy that is right for you.
10 THINGS By Deedee Crossett