New Year Is a Great Time to Review Insurance Policies

By Michael Bell

I don't know about you, but I didn't sit around this past holiday season and read my insurance policies. Thinking about it though, it might have been as much fun as hanging around some of the "family." But that is different story for another offering professional help.

Despite my lame joke, the point I'm trying to make is important. You need to read your insurance policy. At the very least, take the time to review it with your agent. You may not have the coverage you think you have and the coverage you need. One of my clients had Professional Liability included on her policy, but when I actually read the fine print, all she really had was more exclusions. The cosmetologist I was helping had almost no professional coverage for the treatments she offered. On another occasion, I discovered that a day spa had no protection for all the microdermabrasions and chemical peels they were performing.

Now that you are thinking about your insurance, there are other issues to consider. Are you and your salon protected if an employee has a car accident while picking up lunch or making a bank deposit? What about the landlord of the space you rent or the salon owner of the booth you rent, are they properly protected? Your agreement with them probably states they should be covered by your insurance. If you are a salon owner and the independent contractors in your salon or spa don't have insurance, you could be required to add them to your policy which will increase your premium.

Before you renew your insurance you really need to review your policy. At the end of the day, the last thing you want to hear from your insurance company is, "We have reviewed your claim and are closing our file as no coverage is provided by your policy."

Yikes! It will make you wish you didn't hide from the insurance guy.

Michael Bell is a Certified Risk Manager and Certified Insurance Counselor with 20 years of experience helping his clients realize that they can't stand up to their liabilities by sitting on their assets.

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