Are you opening a new Medispa? As an owner, you need a complete protection advantage. Contact our expert beauty insurance broker right away. They can assist you with all the general insurance details. Protection includes Professional Liability, Commercial General Liability, and Content Coverage. The Ives Advantage Team specializes in the beauty industry and can help you every step of the way.
Opening up a new Medispa can be exciting and challenging. Hundreds of little details to complete. One of the more important is purchasing general insurance. Here are some key things to know about insuring a new medispa.
The first thing you will need to do is review your lease. Almost every lease has a section about the insurance you must maintain to lease your space. Details include the amount of required coverage. Amounts can include liability limits, content limits, business interruption, and rent coverages. These coverages will need to be in place long before you open up the doors on your first day. If you have definition questions click here or contact your Beauty Insurance Expert.
The effective date of your policy should be when you take possession of the unit. Not the day you open your doors for a grand opening. At this time, your liability exposure and responsibility to the landlord will start.
Contractors may start renovating your new spa and adding value to your unit. Protect your new finishing in the event of a loss. A special note! You will want to make sure you ensure the value of the improvements and betterment that you might have inherited when you took over your new space. It is not uncommon for a new spa to take the space of an old spa taking advantage of all of the wonderful finishing that the previous spa owner had installed. The previous owner may have added expensive tiling, plumbing, decorations, etc. Once you take possession of the unit, these are now your responsibility. Work with your broker or your contractor to help determine the value of these finishes so that you can add them to your insurance policy.
Also, be conscious if you’re doing a lot of the work yourself. Many spa owners put in a lot of personal labour to get the spa up and ready for opening. So when you’re choosing a limit with your broker about how much to insure your contents limit, make sure you put in the full replacement cost of all of the renovations that you’ve done by yourself. Although this is an inexpensive way of getting your Spa open you would not want to do all the work a second time in the event of a fire or water damage inside the spa. Let the insurance company take that responsibility.
During this construction/renovation period, your broker may need to arrange a special policy called a “course of construction.” This endorsement provides insurance protection while the premise remains closed to the public. During this time, there is slightly more risk to the insurance company because of additional peril risk of fire, vandalism, water damage, etc. There may be an additional premium, usually running only a few hundred dollars — insurance protection for your ease of mind.
Let your broker know well in advance when you are opening. At this time, they will need to change the coverage from the “course of construction” to a regular policy. Your new policy will include additional coverage like loss of income and theft. You and your broker will need to review your coverage level to determine the new content limits now that you have installed all your beautiful finishing and equipment. Working together, you will have protection for the complete value of all of the inherited fixtures and all the new renovations that you have invested in your business.
One of the items your beauty insurance expert will want to know is your sales budget for your first year. You should have some indication as to what you think you will be able to do in sales each month for the next 12 months. Need assistant in planning? Here is a great resource; a business plan for the bank is a good place to start. Your insurance broker will also have some good advice and counsel you as to determining the proper amount of sales to put in the application. Once you are up and running, setting up a reminder schedule is a great idea. Connect with your broker every three to six months for the first year to see how your growth plans are going. Your policy can be adapted accordingly.
One of the most important things you need to talk to your broker about is how you’re going to structure your business. Are you going to have employees or sub-contractors? Staffing difference is an important distinction that will affect the underwriting of your Medispa insurance policy. If you’re going to have employees, your policy will be a broad policy form.
Broad includes professional liability for all owners and employees. Insurance to cover everybody for any claims that occur, as a result of their actions. Our knowledge advantage means we understand your treatments. We can cover all of your technicians and staff including; estheticians, laser technicians, hairstylists, pedicurists, etc.
There is a new common way of staffing your business up with 100% subcontractors. This type of staff structure means underwriting your policy in this format. As the owner your initial outlay for insurance will be significantly less. The reason is you are downloading the premium and some of the general liability coverage to your subcontractors. The Medispa Insurance coverage that you will need as an employer becomes a form of general liability for your operation as the business owner. Also, your beauty insurance will include an umbrella professional liability coverage. If you become involved in a claim by one of your subcontractors, you are protected.
Unfortunately, this is a very common occurrence. It is not unusual for us to see in a lawsuit naming the sub-contractor and the owner of the Medispa. As the owner, you were not responsible for the injury to the client. However, it is common for the client’s lawyer to name the spa owner in a lawsuit. The lawsuit will claim “you know or should’ve known “ that your sub-contractor was incompetent. Of course, you will still need protection for the physical premises.
Luckily you have a beauty insurance expert who knows your business. We can help your sub-contractors make sure they also have the insurance advantage. Have them check-out our beauty insurance information at www.beauty-insurance.com. As the owner, make sure you have them show proof of insurance, as part of your hiring practices.
Opening a new Medispa is an exciting opportunity? The Ives Insurance Team enjoys helping new entrepreneurs get up and running. We have the beauty experience advantage and expertise to help you start your business. You have great knowledge in the beauty industry, so combine that with our great insurance knowledge. So let us help you start that successful Medispa. Get the insurance advantage your Medispa needs. To get started, contact Chris Stark at email@example.com or call 226-641-0777.