Whether you own a medical spa or a day spa, the treatments and services you provide to your clients involve a high level of personal interaction. And the more personal interaction your business has, the higher the exposure to liability risks. Medical spas (or medispas), in particular, face larger risks due to the procedures they do, like laser hair removal and other procedures utilizing medical equipment.
Fortunately, our independent insurance agents are here to eliminate the hassle of searching on your own by walking you through a hand-picked selection of top insurance policies to cover both your business and your employees. But first, let’s talk more about the protection you need and why you need it.
Spas Face A Number of Risks
Example: In 2009, a North Carolina woman won a $500,000 judgment against a medispa after she contracted a serious blood infection that she claimed developed from a procedure done to reduce stomach fat. Another woman sued a Chicago medispa in 2007 for burns on her legs after a laser hair removal procedure, which was settled for $100,000 out of court.
Spas are becoming a massive target for litigation, these days.
This is partially because of how they’re popping up around the country, and partially because of the invasive nature of the procedures.
Malpractice suits can quickly grow to millions of dollars in settlement costs and legal fees. And it only takes one major claim against you to drain your accounts and assets, and close your business. You can protect yourself from the financial disaster of a lawsuit by purchasing a comprehensive spa insurance policy.
Start With Basic Spa Business Insurance
No matter what kind of spa you own or what kinds of services you offer your clientele, you probably need these basic forms of insurance coverage:
- Property coverage: Insures your buildings, inventory, and equipment against damage and loss due to storm, fire, or crime.
- General liability: Pays litigation expenses after an on-the-premises accident, like slips and falls, burns, or other incidents that occur outside of treatment. It covers the plaintiff's medical expenses, court-ordered damages and fees up to your policy limits, and gives additional protection for your legal defense costs.
- Business interruption insurance: This covers operating expenses and payroll while your business recovers from a disaster, like a storm, fire, or burglary.
Medical Spas Need Special Coverage
The most important coverage for a medical spa is professional liability for every employee who provides treatment. If a client claims they were injured after treatment in your spa, your liability policy can cover the cost of your settlement, including damages for pain and suffering.
Because medical spas often perform procedures involving anesthesia, harsh chemicals, laser treatments, and injections, it’s especially important to make sure the professional liability policy you choose covers all of the services your spa provides.
A comprehensive professional liability policy would include:
- Malpractice: Kicks in when a client files a claim accusing someone in your practice of a mistake in treatment, leading to injury
- Sexual allegations: Covers your employees for the cost of legal defense if a customer alleges sexual misconduct during treatment
- HIPPA and disciplinary proceedings: Pays for legal defense if your spa is charged with a HIPPA infraction
Other coverages your medispa may need include:
- Product liability: Covers litigation involving an injury due to products that you’ve sold to a customer.
- Anesthetist liability: Protects you from lawsuit expense involving a Registered Nurse Anesthetist that you employ
- Cyber liability: Pays litigation costs after a data breach or cyber crime compromises your clients’ information
- Regulatory fines and penalties: Covers the cost of an accidental infraction
Day Spa Insurance Protects Your Business
Your day spa may include services that relate to relaxation, skin care, weight loss, and a lot more. And depending on the full menu of services you offer, you’ll need a unique set of coverages to protect your business, including:
- Professional liability: This coverage should be provided for each technician and therapist who serves your clientele. It covers settlement costs and your legal defense up to your policy limits if someone files a claim of malpractice or sexual misconduct. It’s important to make sure that each type of service you provide is included in your professional liability policy.
- Products liability: This covers claims against you if a client alleges they were injured due equipment failure.
Other forms of day spa insurance you may need include:
- Child care coverage: Protects your business if you provide babysitting services for your clients during treatment
- Renters liability: Pays for damage to the space your spa rents
- Fire liability: Protects you if a heating element, candle, or other equipment causes a fire to the building you rent
Get the Right Insurance for Your Spa
If you own a day spa or medical spa you need insurance that covers each technician for all of the treatments they provide. Many spa insurance policies exclude certain services from coverage, so it’s important you examine your policy carefully to be sure there are no gaps in coverage.
Comparing Spa Business Insurance Quotes
Our agents will review your needs and help you evaluate the spa Insurance coverage that makes the most sense. They’ll also compare policies and quotes from multiple insurance companies to make sure you have the right protection in place. They'll hook you up — in a comprehensive and affordable way.
What's So Great About Independent Insurance Agents?
Independent insurance agents excel at matching the most appropriate policy to the business in need. Shopping around for insurance policies can be tricky, confusing, and time-consuming, and an independent insurance agent's role is to simplify the process.
They’re also there to help make sure you get the absolute best deal, and the one that meets your unique needs. They shop and compare insurance quotes for you, and they'll break down all the jargon so that you understand exactly what you're getting.