Medical spas and clinics are one of the fastest growing areas in medicine. Medical spas face risks unlike most other medical practices, and these risks are far more extensive than for typical day spas.
Most medical spas combine the setting of a day spa with certain services performed by licensed, educated, and trained medical professionals. Services range from chemical peels and laser hair removal to Botox injections, which requires a high level of expertise—and assuming a high level of risk when something goes wrong.
What’s more, you have all of the same risks as any business owner who deals with the general public, has physical assets, and can be sued for any reason—with or without merit.
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Why Do I Need Medical Spa Insurance?
Operating a medical spa can be very rewarding, but one fire or lawsuit can destroy your business for good. You need medical spa insurance to protect your assets from a variety of unique risks:
- Property damage risks (fire, theft, vandalism)
- Liability risks (customer trips and falls)
- Professional services/malpractice risks for medical directors, employees, and independent contractors (lawsuits related to medical/professional services)
- Patient privacy and regulatory violations (HIPAA violations, cyber breaches)
What Does Medical Spa Insurance Cover?
Medical spas face many of the same risks as typical retail or office settings, including fire, theft, vandalism and weather events, as well as slips and falls on the property and other third-party injuries or property damage. In addition, medical spas have distinctive professional liability (malpractice) exposures.
You need custom insurance coverage for the unique and not-so-unique perils that you face in your day-to-day operations. Your medical spa insurance should include the following types of policies and coverage:
- Commercial property insurance: Medical spas have to protect their business property from catastrophic loss. You must protect your building if you own it, as well as be able to pay your bills and resume operations if you have to close for repairs after a storm, a fire, or some other unforeseen event. Talk to your insurance agent about coverage for office furniture, fixtures, and all other office contents, as well as expensive medical equipment (e.g., lasers), whether it is owned or leased.
- Business interruption/business income coverage: You still need to pay for expenses like rent and employee salaries if your medical spa must close to make repairs after a fire, storm, or some other covered event. This coverage helps you stay afloat during an interruption in your day-to-day operations.
- Commercial general liability (CGL) insurance: You can be held responsible for injuries or property damage that affect customers, vendors, or other members of the general public while at your medical spa. Slips and falls, falling store fixtures, and faulty products leave you vulnerable to claims and costly lawsuits that could put you out of business. A CGL policy provides broad coverage for bodily injury or property damage that occurs on your premises.
You may want to consider a business owners policy (BOP). These policies are designed for small businesses and include liability, property, and business income insurance in one affordable package policy.
Medical Spa Professional Liability Insurance
Like all medical providers, medical directors and practitioners at medical spas need professional liability insurance, or malpractice insurance. This covers your business against negligence claims that result from mistakes or failure to perform professional services.
Medical spas offer a variety of services, from Botox and laser hair removal to chemical peels, microblading, and more. The consequences of a botched service can be devastating for a clilent.
And even if a claim is unfounded, anyone can sue you for any reason, and you have to be prepared to (and financially capable of) defend yourself.
Many traditional medical malpractice insurance companies do not offer coverage for medical spas because of their varying and unique services and risk exposures.
But an independent agent can help you find an insurance company that specializes in medical spa malpractice insurance, so you can be sure you have the protection you need.
You need a comprehensive medical spa professional liability policy that covers your business, your medical director, and all of your practitioners (aestheticians, nurses, laser technicians, etc.) — including independent contractors—who provide services in your facility.
What’s more, you likely need coverage that protects you from medical board allegations, sexual abuse allegations, and HIPAA privacy breach claims.
How Much Does Medical Spa Insurance Cost?
Your medical spa insurance cost depends on a number of factors, such as the size and location of your physical space, the value of your business property, the types of services you provide, and the number of employees you have.
With a proper valuation of your property and careful analysis of your malpractice risks, an independent agent can help you find insurance companies that specialize in medical spa insurance at a price that fits your budget.
Find and Compare Quotes
An independent agent can work with you one-on-one to determine the types and amounts of coverage you need to protect your medical spa from a variety of costly problems. Your agent can get quotes from multiple insurance companies so you can evaluate the cost and coverage options and make the best choice.
Benefits of an Independent Agent
Our independent agents simplify the search process for finding the right medical spa insurance. They’ll walk you through some handpicked policy options and explain the details and options.
Most importantly, they’ll be there for you when claim time comes. They know the ins and outs of the process and will make sure your claim is handled appropriately.
TrustedChoice.com Article | Reviewed by Paul Martin
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