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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Page 55 of 77 • december 2018 • [ 53 ] spa can be put out of business by a claim—whether legitimate or frivolous— warns Lopez. "Insurance allows you the peace of mind to stay up and running, while the insurance company handles any unforeseen problems that could otherwise be disastrous to your livelihood," she adds. u a business owner policy, which bundles several types of coverage together for a discounted annual premium. Common Claims As noted above, there are quite a few reasons that spa clients might fi le lawsuits. "It could be a laser burn, an infection after waxing or sexual misconduct during a massage—but regardless of who performed the treatment, most people will name the spa in the lawsuit," notes Etter. While not an attorney, she says that the business could very well be liable—especially if proper protocols haven't been followed. "Even if the spa isn't ultimately liable, it could incur legal costs for its defense," she adds. If a client is merely unhappy with a service, Etter still recommends that a spa notify its insurance company immediately. "If the problem is solved with a refund, for instance, the insurance company can typically assist with preparing a release form to prevent the claimant from coming back for more money at a later date," she explains. As with virtually any kind of insurance, after a claim has been fi led, the premium and/or deductible will increase when the policy is renewed. "Typically, the cost and details of the claim, along with whether or not the spa was truly negligent, will all be considered when calculating any increase," says Etter. "Most carriers evaluate claims for fi ve years after the date of the loss." If it's clear that a spa doesn't have good business practices or technician training in place, it could wind up with multiple claims in a very short period of time. "Most carriers won't continue off ering insurance to those spas—but if they do, you can bet the premium won't be cheap!" says Etter. Without the proper insurance, a "The insurance company handles any unforeseen problems that could otherwise be disastrous to your livelihood."

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