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Readers Ask ... Insurance

January 2012 issue of Skin Inc. magazine

Editor’s note: The opinions and viewpoints offered in this column are those of the individuals, and don’t necessarily reflect the opinions or viewpoints of Skin Inc. magazine.

Readers Ask ... is a column featuring the responses of industry experts to questions posed by the Skin Inc. magazine audience regarding all aspects of the skin care industry, from business and ingredients to treatment protocol and legislation. Each month, a different question will be highlighted.

This month's question: Where do I start with insurance—what should I be looking for, what should I offer my employees and how do I find reputable companies?

“Make sure your liability insurance is the occurrence-form type, not claims-made; this means you are still covered against claims that are filed long after an alleged incident occurs. Encourage your employees to have their own liability coverage, because yours may not protect them off the premises, or if they are individually named in a lawsuit against your spa. Spa industry insurance providers often offer group packages so you can set up each employee with an individual policy, which can work out best for everyone. Your estheticians will be protected and, as the employer, you can keep track of all the policies in one centralized system.”

—Jesse Cormier, Executive Director, Associated Skin Care Professionals (ASCP)

“Information comparing the benefits and costs of insurance programs is generally available online. Look for companies that have a lot of experience in the field, and include professional, general and product liability as part of their programs. Bonus coverage—such as lost or stolen equipment and identity theft at no additional cost, plus ancillary benefits, such as a free business website and free newsletter—can make the program that much more attractive. Only do business with companies with strong financial ratings from A.M. Best Company (A or better), Standard & Poor’s (A+ or better) and Fitch Ratings (A+ or better).”

—Joe Fagan, Director of Institutional Marketing & Sales, Insurance Plus+

“There are three major types of insurance required to properly protect your business investment—professional liability, premises/product liability and business property coverage. Insurance coverage is needed from the time you sign a lease, purchase a building or provide a service. It is important to work with an insurance professional who knows your industry.”

—Mary Lynne Blaesser, Director of Marketing, Marine Agency Corporation

View additional insurance tips from Mary Lynne Blaesser of Marine Agency Corporation.