DEC 2018

DAYSPA is the business resource for spa & wellness professionals! Each issue covers the latest in skin care, spa treatments, wellness services and management strategies.

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[ 52 ] • # dayspamagazine • december 2018 management workshop If you have independent contractors or booth renters, you should expect them to carry their own insurance, says Gianna Michalsen, content marketing specialist for Elite Beauty Insurance, which off ers policies for the individual, including professional and general liability coverage, product liability, rental damage, stolen equipment and identity theft protection. The policies are fully mobile, adds Michalsen, so they follow pros to their jobs at spas, clients' homes or any other location. Whichever carrier you choose—as a spa owner or as an independent contractor—Michalsen emphasizes the importance of having a policy with "occurrence" versus "claims made" coverage. She explains that the former type off ers protection for an event that happened when you had insurance, even if the claim is fi led after the insurance has lapsed. "Claims made" policies only cover claims fi led when you have an active insurance policy. "Research shows that 36 percent of claims would not have been paid out on a 'claims made' policy," says Michalsen. Money Matters The annual cost of an insurance policy varies greatly, depending upon the size of the spa, selected limits and claims history, as well as the number of service providers, types of services off ered and gross revenue. "It's best to fi nd an insurance agent who thoroughly understands the spa industry and can put together a competitive package," Etter says. "Most of these policies are not one-size-fi ts-all and can be customized to the needs of the individual business." That said, the average day spa owner pays about $425 annually for a general liability policy, while professional liability insurance can average a bit more at $500 a year. Oftentimes, it makes more fi nancial sense for small-business owners to get © GETTY IMAGES

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