Owning a tattoo shop is a unique and exciting business venture. From creating art that resonates with clients to maintaining a safe and professional environment, tattoo shop owners juggle many responsibilities. One area that often gets overlooked is insurance—specifically, umbrella insurance policies.
What is Umbrella Insurance?
Umbrella insurance is an additional layer of liability coverage that extends beyond the limits of your standard business insurance policy. It kicks in when the underlying policy’s limits have been reached, providing extra protection against unforeseen incidents that could otherwise result in financial ruin.
For tattoo shops, which face unique risks not common in other businesses, umbrella insurance is particularly valuable. Let’s explore why.
1. Comprehensive Coverage for Unforeseen Events
Tattoo shops can face a variety of liability risks. From allergic reactions to infections or even slip-and-fall accidents within the shop, the potential for lawsuits is real. For example, consider a tattoo shop that faced a $1.5 million lawsuit due to an adverse reaction to tattoo ink. The shop’s general liability policy covered up to $1 million, leaving a $500,000 gap. Without umbrella insurance, the shop owner would have had to cover this amount out of pocket.
2. Protection from High Legal Costs
Legal fees can quickly add up, even if you’re not at fault. A simple misunderstanding or a small mistake can lead to costly legal battles. In fact, statistics show that 70% of small businesses experience at least one liability claim over a 10-year period, and 25% of those claims cost the business more than $500,000. Having an umbrella policy means these costs won’t jeopardize your business’s financial stability.
3. Affordable Peace of Mind
While it might sound expensive, umbrella insurance is quite affordable. For just a few hundred dollars a year, you can secure millions in coverage. This additional protection ensures that even if a significant claim or lawsuit occurs, your tattoo shop can weather the storm without devastating financial consequences.
4. Coverage Beyond the Basics
Umbrella insurance doesn’t just cover physical injuries. It can also protect against things like libel, slander, and other personal liability claims that aren’t covered under a standard business policy. For tattoo shops, where reputational damage can be as costly as physical damages, this coverage is invaluable.
5. Real-Life Example from the Restaurant Industry
Although tattoo shops and restaurants are different, they both face customer interactions that can lead to potential claims. Consider a case where a restaurant faced a $3 million lawsuit after a customer slipped and fell. Their general liability insurance covered $2 million, but without umbrella insurance to cover the remaining $1 million, the restaurant could have faced serious financial strain or even closure.
Why Tattoo Shops Need Umbrella Insurance
Given the nature of their work, tattoo shops are exposed to higher liability risks than many other businesses. Skin infections, allergic reactions, or even a claim of poor craftsmanship can lead to lawsuits that exceed standard insurance coverage. Umbrella insurance provides that extra layer of security, ensuring that you can continue to focus on creating art without constantly worrying about potential financial disasters.
Take Action Now
Don’t leave your tattoo shop exposed to unnecessary risks. Protect your business, your employees, and your peace of mind with umbrella insurance.
For more info, text or call Monreal Insurance Solutions at (909) 757-1311 or click the link in the bio for a quote.