Conference Attendance Hall

On March 4th and 5th, representatives from Total Body Pac® Insurance Program attended the International Congress of Esthetics and Spa in Miami Beach Florida.

The Congress brings together professionals from all areas of the Day Spa Community.  Held in conjunction with the Day Spa Association, many body treatment professionals benefit from classes, seminars, networking and trade show advertising.

Jonathan Friedman, Total Body Pac Program Manager and Ian Sterling, New Business Development Director attended the event.  They met with a number of body treatment professionals and facility owners who were quite curious about saving on their malpractice insurance for their professionals and their business.

One of the big topics discussed was how the Total Body Pac® Insurance policy would respond in the case of malpractice caused by contractors vs. employees.  Jonathan and Ian were able to answer many questions regarding this topic, known as risk transfer to industry insiders.

The other big topic was the price of professional malpractice coverage.  Total Body Pac has filed a 25% rate decrease across the board in all 50 states to the delight of many of the conference attendees.

If you would like information regarding the Total Body Pac Insurance program, you can visit our website or you can get a quote online.

See event pictures below:

Congress of Esthetics and Spa

“This rate reduction clears the way for significant savings to our current and prospective clients in the Salon, Day Spa and Tattoo Studio industries”, said Ann Stabile, director of Programs for SterlingRisk “Total Body Pac® is now the most affordable comprehensive insurance program for body treatment professionals and businesses in the United States.”

The rate reduction was set to coincide with the launch of the new internet microsite designed and built by SterlingRisk, the program administrator for Total Body Pac®.  ”We’re expecting a lot of growth in the program and we needed a way to match our product with demand for our solutions and pricing,” said Adam Frank, Project Manager and developer of www.totalbodypacinsurance.com.  ”The website has exceeded our expectations in terms of aesthetic design and actual function.”

Total Body Pac® includes expert commentary on safety and cost savings techniques for individual professionals as well as business owner operators of Salons, Day Spas and Tattoo Studios.  It also includes the ability to apply online as well as report claims for current clients.

The Total Body Pac® Insurance Program is underwritten by a National Insurance Company rated “AXV” by AM Best and Co. and is a leader in providing professional liability coverage to the mental health and addictions fields and other allied health professionals.

Professional liability insurance covers liability for damages arising from the rendering of or failure to render professional services. With claims increasing during this economic downturn, the need for professional liability insurance coverage for Salon, Day Spa, Tattoo Studio Owners and Professionals is even more great. Protect yourself and your livelihood from claims that may not be covered by commercial general liability coverage.

Professional liability insurance, also referred to as Professional Indemnity Insurance or Malpractice Insurance, protects professionals against negligence claims made by their clients. Body Related Service Professionals commonly purchase this type of liability insurance as do architects, home inspectors, lawyers, physicians, real estate brokers and accountants – among others.   Specific professional liability insurance carries different names depending on the profession. For example, professional liability insurance for Salon, Day Spa and Tattoo Studio owners may be called malpractice insurance, while real estate brokers fall under errors and omissions insurance coverage. Because claims become more frequent in a down economy, protect yourself with professional liability insurance.

Professional Liability Considerations

The need for professional liability coverage developed due to typical general liability insurance policies only responding to bodily injury, property damage, personal injury or an advertising injury claim. Because Body Treatment professionals  can cause claims without bodily injury, property damage, personal injury or an advertising injury claim, additional coverage is needed to fill this gap.

Common claims made on these policies include negligence, misrepresentation, violation of good faith and fair dealing, and inaccurate advice or services.   For example, if a Body Treatment Professional were sued for rendering bad service, it may not cause bodily injury, property damage or advertising injuries. Because of this, the general liability policy would not be triggered. But because the services provided by the Professional could directly cause emotional hardship for the patient, the professional liability coverage would be triggered.

The Total Body Pac Insurance Program provided by SterlingRisk  covers Salon, Day Spa and Tattoo Parlor Owners and Professionals Professional liability, General Liability Property and Umbrella Insurance Coverage.

15 Pointed Questions to Ask Before You Choose Your Insurance Agent

Choosing the Right Insurance Agent

1. Does the insurance agent understand the unique requirements of my business? How many businesses like mine does he/she insure?
2. What experience does the staff have? How do I know if they are up to date with all the new coverage and hazards I face? Does the staff train more than the State requires? Does the agency personnel have advanced insurance designations?
3. Does the agent use only “A” or better rated companies?
4. What backup can I count on when my personal agent and his/her staff are out of the office for even one day?
5. What does the agent do to make sure I’m properly covered?
6. Our rapid growth creates the concern we may pick up a new property or risk and not be properly covered. How can the agent ensure that future exposures are properly covered?
7. What happens when I have a claim?
8. Are payment terms convenient to how I do business?
9. So I save time and have one responsible insurance person, does the agent/agency have the expertise to service all my insurance needs and answer all my insurance questions?
10. What extra services can I expect from the agent? Is there a charge?
11. What are my rewards for loyalty?
12. How easy and hassle-free is it to work with the agent? How many “handoffs” will I get when I call the agent’s office?
13. If I want or need additional coverage, how long will it take the agent to respond?
14. Will the agent provide my cost breakdown per location or department if I need it?
15. How can the agent assist me in training my staff to control losses?

Do your answers suit the way you like to do business?

To learn more about the Total Body Pac® Insurance Program, or to apply online, please click the following links:

Program Highlights

Apply Online

If you’re a tenant, here’s what you need to know about your lease.

Take this quiz to find your lease IQ.

1. What is the term of your lease?
2. Is there a renewal option?
3. Is a bonus paid for lease?
4. What are your obligations for building services (heat, insurance, etc.).
5. Is there an abatement provision if you suffer a serious loss or damage?
6. Are you liable if the building fire insurance cost increases?
7. Are you required to carry insurance for the benefit of the landlord:
   1. Fire insurance
   2. Liability insurance
   3. Plate glass insurance
8. Do lease provisions make you responsible to repair or restore:
   1. Damage not resulting from your negligence?
   2. Repairs to the heating and air conditioning units?
   3. Structural repairs and latent defects?
   4. Extraordinary repairs that should be covered by the landlord’s fire insurance policy?
9. Does the lease expressly deny your liability for those instances in question # 8?
10. Is your landlord required to make repairs you’re not required to make?
11. Does your landlord’s fire insurance policy contain a waiver of subrogation clause?
12. Does your landlord relieve you in advance of any liability for fire or other casualty losses in excess of payments received from his fire insurance company, whether you cause them negligently or not?
13. Do you indemnify and hold your landlord harmless for injury to third parties?
    1. Is hold harmless limited strictly to your use and occupancy?
    2. Are you still liable if your landlord is negligent? Example: Repairs not made as promised?
14. Is the hold harmless ambiguous or specific? You don’t want terms such as “in or about” or “on or about” the leased premises. You need the terms to be very specific to your leased premises.
15. Does any lease provision create a liability for you other than your landlord?
16. Are you required to indemnify/hold harmless your landlord from liability for injury or damage to third parties or their properties not caused by your negligence or by your failure to comply with all provisions of your lease agreement?

If you’re a landlord:

1. Is your tenant liable for any fire insurance increases?
2. Is your tenant required to carry fire insurance and liability insurance in your favor?
3. Is there an obligation for your tenant to repair and maintain the premises they occupy and the air conditioning/heating unit that services their premises?
4. Has your tenant paid for any improvements or betterments? How much did they spend?
5. Under what circumstances must you as landlord:
6. Rebuild or repair the premises?
7. Comply with new building code requirements?
8. Is sub-leasing permitted?

When a catastrophe occurs your lease plays one of the dominant roles in getting you back in business quickly and profitably. Make sure you, your attorney and your insurance agent know what you want.

Would you rather cross the ocean in a cruise ship or a rowboat?

Every insurance company is given a financial rating by several different rating bureaus. Those ratings attest to the financial ability of the company to pay your claims.

You should verify the rating of the company you insure with before you purchase your insurance. Best’s Rating is the most common rating guide and here’s how Best’s rates insurance companies.

Every company receives a letter rating and a Roman Numeral Rating. The letter rating indicates how “secure” the company is in relation to its claims paying ability. Premiums and how a company “reserves” (how much money the company puts aside to pay future claims) is taken into consideration.

Here are the Best letter ratings:

So, just like your kids get a report card, who do you want to put your financial future with? Under most circumstances, with at least an A- insurance company.

The Roman Numerals represent the financial size of the company.

These numbers represent the amount of Capital Surplus and Conditional Reserve Funds. (The money set-aside for claims) So, each insurance company has two ratings and it looks like this: A+XV, B+X, etc.

Now would you rather cross the ocean on a Cruise Ship…and A++XV insurance company or a rowboat, a CV insurance company?

You should also check if an insurance company is domiciled (admitted) in the State or non-admitted. An admitted insurance company has their charter in the State and must abide by slightly different rules than non-admitted companies and its policyholders are protected by the State Insolvency Fund that helps to pay for losses that are outstanding if the admitted company becomes insolvent.

Non-admitted companies are domiciled in other states and have the authority to write insurance in the this State if they pay certain taxes and fees…which are usually passed on to you.

When you insure with a non-admitted company that becomes insolvent, the State Guarantee Fund will not pay the claims of those people or businesses insured by the non-admitted company.

It’s OK to insure with a non-admitted company. You just want to make sure the have at least an “A” Rating.

It’s your choice. The cruise ship or the rowboat!

The Total Body Pac® Insurance Program is underwritten by a National Insurance Company rated “AXV” by AM Best and Co. and is a leader in providing professional liability coverage to the mental health and addictions fields and other allied health professionals.

Safe Insurance Practices for email

What’s your email policy? If you don’t have one, now is the time to add it to your policies and procedures manual and communicate it to all employees.

For example:

…electronic communications must be consistent with the standards of ethical and proper behavior and conduct. You may not use electronic communications to create, forward, or display any offensive or disruptive messages, including photos, graphics and audio materials…

The use of email can come back to haunt like a legal time bomb. IE: the Microsoft case. Much of the Government’s case was built on the internal email among Microsoft’s executives.

Here are some necessary steps:

• Create a formal email policy that spells out the risks to employees of inappropriate emails and the language that should or should not be included. Make sure to include how long employees should retain email and the method to dispose them.
• Your electronic communication policy must refer to your policy on sexual harassment and non-discrimination.
• Communicate your email policy to your independent contractors.
• Publicize what the penalties are for violating the email policy.
• Treat email with the same respect you give to regular mail.
• Be aware of transmitting confidential information that may violate privacy laws. That information may have to be encrypted.
• If employees use their home computers for business email, their entire personal correspondence file can be subpoenaed in any action against the company.
• Include that you, as the employer, reserve the right, but assume no

duty, to monitor all employee communications at all times during employment. You also reserve the right to block access to chat rooms or other inappropriate Web sites and can impose reasonable restrictions on electronic communications.

• To diffuse any invasion of privacy rights, all employees should sign off recognizing that all email is the exclusive property of the company.
• Employees must treat email with the same respect regarding customers and others.

Email lives in “cyber perpetuity.” Even though you may delete it, the original message lives on someone else’s computer. Each time any email message is handled by a server it makes a copy. The time it reaches you or any recipient, several copies have been created and stored. For each additional recipient, the number of potential electronic copies of the document increases exponentially.

Upon receipt of the message, any recipient may delete it, but only the recipient’s copy will be deleted. Other copies will remain stored. Somewhere, unless all the copies are deleted, there will be a record. An attorney will search far and wide to find that record if need be…and the cost to do so can be overwhelmingly devastating.

An electronic media request can include email, correspondence stored on main frames, PC’s. laptops, file servers, backup tapes and optical disks, “retired” hard drives and floppy disks, and yes, voice mail.

Don’t let email go unregulated. Train employees, not just how to use it, but how to communicate with it. Remember that electronic communication is litigation lurking around the corner!

1. Maintain adequate lighting throughout your business premises. Saving money on electricity just to pay it out on claims and customer bad will is a short–sighted policy. (pun intended)
2. Keep electrical wiring, stairways, carpeting and flooring in good repair. Make each employee responsible to report any problems. Remember that customers that see “shabby” premises relate that image to the rest of your business.
3. Keep only a small amount of cash on your premises. Don’t tempt employees as well as “bad guys” in masks.
4. Keep good records of your inventory, accounts receivable, and equipment purchases. Keep duplicate records off site. When you have a loss, you must prove the value of the damaged property. A loss causes other pressures that might cause you to cheat yourself out of money you deserve.
5. Only hire drivers with clean records. We’ll order motor vehicle reports before you let a new employee behind the wheel. Then we’ll help you train and certify your drivers according to the National Safety Driving Council guidelines.
6. Take some of the risk yourself and raise your deductibles to save money. You know your financial tolerance and you know how often you suffer a loss. The money you save with higher deductibles can go to protect other risks or into your “self-insurance account” to enable you to continue to assume more risk and pay less premium. How much you would have earned and saved on your insurance if you had invested that money in the past 10 years?
7. Hiring great employees is better than trying to train mediocre ones. Develop a hiring expert so you get the best possible employees. There is no substitute for hiring great employees.
8. Have a backup plan in case a disaster strikes. Prepare for the worst.
9. Work hard to maintain a spotless insurance image. Know what risks you must cover and what risks you want to cover; what disasters will wipe you out and which you can endure. List what would be a devastating loss, like loss of income because of illness or accident, and what would be a tolerable loss, like damage to you car. Are you protected against devastating losses?
10. Are you in compliance with all Federal, State and local employment laws? An employee lawsuit can be one of those devastating losses in time spent, money spent and loss of morale.
11. Know what your fiduciary duties are.  Since the laws governing employee benefit plans are so complex, and you’re acting as a fiduciary and can be personally sued, your benefit plan decisions must be prudent and in the best interest of your employees.