Foxy

Has anyone ever heard of just carrying liabiltiy insurance on a salon. I hate to say it but my beds were born in 97-98.
I started this year in the slow months and can't stratch up enough right now for full coverage. I don't wanna get surd by a customer though so I thought just liability could get me by until things pick up. Godd or bad idea?

West Side Tanner

God forbid anything would happen, and you would be out of business without your beds.
IMHO, don't go without it, shi! happens.

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[ This Message was edited by: West Side Tanner on 2004-11-06 09:35 ]

SwedaGuy

Ask yourself if you owe money (on the beds or anything else)...It's one thing to be out of business with no income, but it's an entirely different scenario to be out of business, with no income, and deep in debt...

lil_missfit

How many beds do you have. My property and liability insurance is less that $80/month. Its the tanning liability that cost us so much.

Foxy

I have six older beds all paid for. Owe nothing except the rent every month. My beds are older though. I had them appraised last week. Kinda like getting full coverage on an old car. Money is just tight. Opened only for 5 months, all pretty slow months.
One company quoted me 450 down and 160 month. I'd rather have a customer covered than the beds. Sometimes you just have to take a chance. Hopefully next year things will be different.

Neon Beach

Liabilty covers you against claims by clients or anyone that trips over twig or icicle near your front door that you should have removed (a.k.a. negligence). Your other coverage should include losses incurred by fire, flood and so on, and should include a replacement value for your equipment despite there age. If you want to continue with your business after an unforseen incident or accident, pay what you have to in order that may start again.

Jackma

I am looking for a form to notify cleints that they enter at there own risk. Even though I know I am liability. But I can not find anything on line. Plus the insurance company said I need to have them signed. Does anyone know anything about this?

missmojorising

People that went to law school know this kind of crap...become an LLC....when a client walks in and signs a waiver (that we, in the tanning bed industry should have every person sign on their initial visit) there should be language adequate to cover the "tan at your own risk" factor. If something does happen they can make an effort to find an attorney who might sue for whatever cause or reason they can dream up-but, when that lawyer finds out you are a LLC (Limited Liabilty Corporation) and carry minimal insurance he will not see visions of dollar signs dancing in his head but loads of billable hours and paperwork that he will never be paid on. If they do win they can take your business and do--- I don't know what with it..but they can not touch you personally. Most times some form of insurance is required in each state or by your landlord, but it can be as minimal as fire insurance. Check your state stautes and then you can make a better informed decision. Don't let the insurance companies scare you in to coverage you'll never need, remember they are salespeople and are not interested in your bottom line.

Foxy

How does one become a limited liability corporation instead of sole proprietorship?

redheadgranny

I would like that answer also. Is it a matter of just notifying the State Tax Department or is there more to it? Also, as a sole proprietor can they "take you to the cleaners'" so to speak?