Most people don’t wake up and think I can’t wait to review my insurance needs. It is a good thing that there are some of us out there that love to review people’s insurance. When picking your insurance agent make sure you discuss with them the items that keep you up at night. There might be an insurance solution for those concerns. Don’t assume that one policy can cover all of your concerns. There are exclusions to business owners’ policies, these exclusions are not in there for the purpose of avoiding claims. Insurance policies have exclusion for a couple of reasons such as cover can be found on a different type of policy or coverage that can be added for additional premium.
Yes, insurance can be confusing so remember to go with a specialized insurance agent. Your agent might specialize in personal lines coverage (like home & auto) and even commercial insurance yet no very little about the salon industry.
One area of concern that is not typically found with your property and causality insurance is Employment Practices Liability Insurance (EPLI). EPLI is typically a separate policy and should be included in with your business portfolio as soon as you hire your first employee. EPLI can provide protection for you as the owner against accusations made by present, past or potential employees. This is coverage for various types of discrimination, wrongful termination, harassment, and other employment-related allegations.
It is important to document but even with through records your employees can still accuse you of a wrongful act. We all know that the salon industry has a busy season and usually bulk up on staff right before the season hits. When hiring additional staff, did you set realistic expectations? Prior to hiring staff include a job description of the position such as explaining to them that the position is only part-time, temporary, and or on a seasonal basis. By setting realistic expectations it could help prevent future discrepancies.
As you might expect, employment related types of cases are on the rise and can happen to any business. You could find yourself vulnerable from the pre-hiring process through the exit interview, even if never employed, or may have only worked for you for a couple of days. This is a reality; even unsupported or falsified claims can have a pricey legal defense cost to them, not to mention the headaches and mental anguish. Small to medium size businesses can be an easy target as they normally don’t have a Human Resources department to handle staff’s concerns. If you are concerned even the slightest about these scenarios, call your insurance agent for a quote. It is free to get a quote and then you can decide if Employment Practices Liability insurance fits in your budget. You might be surprised on the cost.
Contact your agent for more information about this type of coverage.