Unlike the many courtroom dramas on television, most legal proceedings are far from electrifying and don’t involve a lot of snappy dialogue. However, any legal action will seem dramatic if you happen to be in the middle of it. Although that may seem to be a remote possibility, today’s is a litigious society and having appropriate insurance coverage is a must.
Creative attorneys often name multiple parties in a lawsuit, leaving it to a jury to sort out who will actually pay a client’s damages. Even if you are technically in the right, you could still end up holding the bag. In addition to suing you, a client may go after your employer, landlord, the franchise owner, parent company and product manufacturer.
If you are a spa owner, you should have general liability or a business owner’s policy. (See Insurance Terminology for definitions of all the common policies for spas.) The complexity and size of your business determines how much coverage is needed. Smaller organizations can probably get by with just a business owner’s policy, but larger businesses need more comprehensive commercial general liability policies. Whichever is right for your spa, these plans will cover a washing machine that floods your work area, a table that collapses, a client who trips on icy steps, or an overturned candle that causes a fire or a waxy mess, which is a surprisingly common claim. Accidents can and do happen in any business, and having business property coverage is key because of your dependence on the facility and equipment to earn your living. Rhonda had more than $10,000 worth of equipment, accessories, products and a portfolio stolen out of her car. Three things worked in her favor: The car had been locked at the time of the theft, she filed a police report and she had property insurance.