One of the most common mistakes we see spa and salon owners make involves instances of renting a chair or room to Independent Contractors. Sometimes these independents are performing services that are well beyond your coverage. To protect yourself from any claims that arise from the Independent Contractor’s services (some services are classified as higher risk like laser and injectables), you want to make sure they extend their insurance to cover you as an Additional Insured.The spa/salon owner will always be dragged into a lawsuit. Follow these three steps to make sure your’e properly protected:
- Require a copy of the Dec Page/Certificate of Insurance from the Independent Contractor(s).
- Request the Independent Contractor lists your spa as an “Additional Insured”.
- Make sure you keep track of expiration dates.
Obtain a copy of their insurance and make sure it is current and the correct type of coverage. ABE can help you review it if you need (Professional Liability, limits not less than $1,000,000 per incident, Occurrence Form, etc). If they don’t have proper insurance, then everything will fall on you, so make sure you have the proper coverage. Make sure your spa is listed as an Additional Insured on their policy, otherwise you and your business will be severely exposed.