The Cost to Rebuild Has Changed

"Why Replacement Cost Matters for Tanning & Beauty Salons"

The cost to build and equip a salon has changed dramatically over the last several years. What may have once cost $250,000 to replace could now easily exceed $500,000+ due to rising equipment, shipping, labor, and installation costs. Unfortunately, many salons are still insured based on outdated values - creating potential coverage gaps if a major loss occurs.

What’s Driving the Increase?

Several factors have significantly increased replacement costs across the industry:

• Higher equipment pricing

• Increased manufacturing and shipping costs

• Inflation impacting construction and buildouts

• Rising labor and installation expenses

• More advanced and specialized equipment being used in salons

From tanning beds and red-light therapy equipment to cryotherapy units and custom interiors, replacement costs today look very different than they did just a few years ago.

Why This Matters

If your Business Personal Property limits have not been reviewed recently, your policy may not fully cover the cost to replace damaged equipment after a loss.

This could leave businesses facing:

• Unexpected out-of-pocket expenses

• Delays in reopening after a claim

• Reduced cash flow during recovery

• Difficulty replacing specialized equipment at current market prices

In some situations, underinsured businesses may not recover fully from a large loss.

The Good News

Reviewing and increasing limits is often more affordable than many business owners expect.

In many cases:

• Small premium adjustments can create significantly stronger protection

• Updating values can help avoid major coverage gaps

• A simple review can improve long-term business stability and peace of mind

What Should Be Reviewed?

A replacement cost review should include items such as:

• Salon equipment and machines

• Furniture and fixtures

• Point-of-sale systems and technology

• Inventory and supplies

• Tenant improvements and buildout costs

• Specialized treatment equipment

A Simple Review Can Make a Big Difference

Insurance is most valuable when coverage reflects today’s real replacement costs - not yesterday’s pricing.

Whether you own a salon or work with clients in the industry, now is a great time to revisit Business Personal Property values and ensure coverage still aligns with current market conditions.

UIP understands the unique exposures within the tanning and beauty salon industry and is here to help with a quick coverage and valuation review.