Tanning Salon Insurance

Several factors affect insurance premiums for tanning salons during the underwriting process, such as:

• Type of services: The services you offer, such as tanning beds, automated spray booths, or custom airbrush tanning, will affect how much you pay for insurance.
• Business property and equipment: It will cost more to insure a large salon with luxury tanning beds than a smaller salon with less expensive equipment.
• Annual revenue: Higher revenue usually means greater exposure to liability claims and larger potential losses, which can increase your insurance rates.
• Business location: Insurance costs can vary based on property values, litigation trends, crime rates, risk of severe weather, and the cost of doing business in your region.
• Coverage limits and deductibles: Higher policy limits provide coverage for more expensive claims at an increased cost, while choosing a higher deductible lowers your premium. Remember, your policy won't activate until the deductible is paid.
• Claims history: Tanning salons with previous insurance claims may pay higher premiums than those with a clean claims record.
• Number of employees: Each additional tanning technician, cosmetologist, or esthetician increases premiums because they each bring the risk of an injury or lawsuit.

Tanning salons typically must be licensed and have certified operators, but the specifics depend on your region and the professional services you offer.

For example, most states don't require a license or permit for spray tanning, but some require an esthetician license or tanning certification. UV tanning has stricter requirements due to its inherent risks.

Here's what you likely need to run your business:

• Business license. Every salon owner typically needs a standard business license to operate legally.
• Tanning license. Many regions require a specific tanning license or equipment registration, especially for those that offer UV tanning.
• Health permit. Your facility and tanning equipment may need to pass a physical inspection to obtain a permit from your local health department.
• Certified operators. Your city or other local jurisdiction may require you to have certified operators on site to ensure the safety of UV equipment.

You or your employees can become certified through organizations like the National Tanning Training Institute (NTTI) or SunFocus. Even when it's not required, having a certification can help boost your salon's reputation or open up new opportunities for a tanning technician.

Tanning salons should always carry general liability insurance and professional liability insurance (also called malpractice insurance) to protect against costly injuries and legal fees. In some cases, you may need liability coverage to run your business.

Here's a quick breakdown of the importance of these policies:

• General liability insurance covers common third-party lawsuits, such as a client who sues because an employee posted a photo of them on social media without their permission. You might need proof of insurance to rent a space, sign a contract, or get a business loan.
• Professional liability insurance pays for lawsuits related to professional negligence. For example, a client might sue over a poorly applied spray tan or a UV burn from a tanning bed. Property owners and licensing boards may require proof of this coverage as well.

Because they cover different risks, tanning salons typically need both general liability and professional liability in order to fully protect their business. Often, landlords require salons to list them as an additional insured on their policy, as this endorsement protects them from medical bills, property damage claims, and legal costs related to your business operations.

The high cost of litigation makes liability insurance crucial for every tanning business, even if you're a sole proprietor. Otherwise, a single accident or dissatisfied client could potentially bankrupt your business.

Yes, mobile spray tan businesses face the same risks as salons, which is why they need to protect themselves with insurance. If a customer suffers an adverse reaction to a spray tan, your policy can help pay for their medical bills, or a settlement or judgment if your business is sued.

In addition, you will likely need:

• Insurance for your equipment. Tools and equipment insurance, also called inland marine insurance, covers business property wherever you bring it—unlike commercial property insurance, which only covers items kept at your business location. If someone steals your tanning equipment from your car, it'll help pay to replace the missing items.
• Insurance for your vehicle. Operating a mobile business means you'll need to comply with state requirements for auto insurance. You will need commercial auto insurance for a business-owned vehicle, or hired and non-owned auto (HNOA) insurance for a personal, rented, or leased vehicle used by your business.

Other policies like general liability and professional liability follow you wherever you offer your services, though you'll want to confirm this with your insurance agent, as the terms may vary. Insureon's licensed agents can help you find the right spray tan insurance for your mobile business to ensure you're properly protected.

For a comprehensive risk management strategy, tanning technicians and salon owners should consider several additional policies, such as:

• Commercial property insurance covers costs if your building, tanning beds, or spray booths are damaged or lost due to a fire, storm, or burglary.
• Business interruption insurance, also called business income insurance, covers loss of earnings and daily operating expenses if a covered property claim forces your salon to temporarily close.
• Equipment breakdown insurance covers the sudden failure of a tanning bed, automated spray booth, or other piece of equipment your business depends on.
• Product liability insurance protects your business if a product causes an allergic reaction or other harm that leads to a lawsuit. It's usually included in general liability insurance.
• Employment practices liability insurance (EPLI) covers legal expenses related to wrongful termination, discrimination, harassment, and other violations of employee rights.
• Sexual abuse and molestation coverage helps pay for legal defense costs, settlements, and judgments stemming from claims of sexual abuse or molestation.

Tanning technicians and salons can take steps to reduce their insurance premiums. Here are several ways to keep your costs low:

• Shop around. Insurance carriers often sell similar types of coverage at different rates. To find a good price, compare insurance rates from trusted carriers with Insureon's easy online application.
• Pay the annual premium. You can choose to pay your premium once a month or once a year. Insurers usually offer a discount when you pay the full annual amount instead of monthly payments.
• Work with an agent. Our licensed agents can help you find coverage that fits your risks and your budget, without any add-ons you don't need. They can also navigate the insurance market to find cost-saving bundles and the best rates for your business.
• Keep continuous coverage. Stopping and starting coverage is a red flag for insurers, and may end up costing more in the long run.
• Customize your policies. Lower limits and higher deductibles can reduce your premium, but make sure you can easily afford the deductible, as it must be paid in full before you can collect on a claim.
• Manage your risks. Clutter-free salons, employee training, proper maintenance of tanning beds, and other risk management strategies can help you avoid accidents, injuries, and subsequent lawsuits.