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10 Ways to Save Money on Your Insurance Program

By: Kenneth C. Hegel, Jr.
Posted: June 23, 2008, from the April 2006 issue of Skin Inc. magazine.

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By reviewing your insurance program periodically, you will be able to better ascertain whether or not you are carrying too much coverage for your needs. Have your inventory levels dropped in the past few months? Are they higher at certain points of the year than others? If you answered yes to one or both of these questions, then maybe you should consider adding a peak-season endorsement onto your current property insurance policy. This will increase your coverage during a specified period of time when you are carrying greater inventory values. It will help to keep costs down because you only will be paying premiums during these time frames.

Implement loss-control practices

The implementation of good loss-control procedures can help to decrease both the frequency and severity of potential claims, thus keeping insurance premiums down. An example of this type of precautionary measure includes installing video surveillance in your storage area to help prevent employees from pilfering or stealing. This will result in what is considered by insurance companies to be favorable loss experience, which can have a huge impact on your premiums.

Offer a training program for new employees

An employer can help to minimize the potential chances of a claim being filed by properly training team members in the workplace. For instance, educating employees about a particular piece of equipment will ensure that they will be aware of the proper safety procedures that must be followed in order to prevent the possibility of an injury.

Request certificates of insurance from all independent contractors

Obtaining certificates of insurance from all independent contractors working in your spa—especially those who are being paid on a 1099 form—can help keep insurance costs down. Most professional liability policies are rated on the number of operators who are performing professional services. Why should you pay an insurance premium on someone who is being paid as an owner/operator? In essence, they are in business for themselves, and they should carry the necessary coverage to operate their business.

Practice good housekeeping

Keeping your workplace tidy can and will prevent claims, such as falls. Fewer claims can mean cheaper premiums in the long run. This is the recommendation that is the easiest to accommodate and should be practiced by all spa owners.

Utilize an experienced insurance broker