Spas: Let's Talk Business Owner's Insurance
A lot of spa owners may think that their malpractice insurance is the most important type of insurance they need. Certainly, malpractice insurance is very important, but today, let’s talk about the importance of Business Owner’s Insurance. First and foremost, a spa is a business. And, as a business, there are many concerns above and beyond the services provided by the spa.
We recently came across a really nice, thorough article from our friends at PPIB entitled, Pop Quiz for Spa Owners. In it, the article mentioned 7 areas of coverage that spa owners should be sure that they have, as they relate to their Business Owner’s Insurance. They are:
Business Personal Property. This includes items like equipment, furniture, supplies, decor, etc. (Think of it as anything that can be picked up and moved.)
Loss of Business Income. This coverage would help you pay your basic bills in case of an event that leaves you without business income –like a fire, for example. It is extremely important that you keep accurate profit/loss records and that you update your insurance company regularly with any changes, especially regarding your business’ growth.
Tenant Improvements and Betterments. This type of coverage is particularly important for spas that rent their space and make improvements –like adding light fixtures or installing cabinets, etc. Any improvement a spa makes is not likely to be covered by the renter if something were to happen to it.
Inland Marine. Don’t be fooled by the name and think you don’t need this kind of coverage. Inland Marine coverage covers equipment when it is outside of your primary office location. This type of coverage is particularly important for spas that offer services off-site.
Employee Dishonesty. No one wants to think that their employee(s) may steal from them. But, unfortunately, it happens. This type of Business Owner’s Insurance coverage can ease the pain if this does occur –usually as long as it’s not committed by one of the owners.
Property of Others. This coverage relates to the property of independent contractors at your spa and/or clients. Some policies may include this coverage and others may not. Ask your insurance agent if it is included in your policy and, if not, if you need it.
Electronic Data and Computer Media. It’s terrific to know that your computers can be replaced in the event of theft or disaster, under your Business Personal Property coverage (see above), but what about the data on those computers? Often times, data replacement is considered a separate type of coverage and isn’t necessarily included with a Business Owner’s Insurance policy –so be sure you get it!
Feeling nervous or unsure about your spa’s Business Owner’s Insurance coverage? Have questions? Don’t hesitate to give us a call –we are happy to answer your questions or quote you for a new policy.