Spa Insurance

The One Thing That Can Close Your Spa - Protect Yourself

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. That personal interaction can be a huge liability risk. Medical spas in particular face larger risks due to the procedures they do, including laser hair removal and other procedures utilizing medical equipment. 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. Partially because of how quickly spas and medispas are popping up around the country, and partially because of the invasive nature of the procedures, they are becoming a massive target for litigation.

Malpractice suits can quickly grow to millions of dollars in settlement costs and legal fees. 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.

The Spa Industry Is Growing

  • There are nearly 20,000 spas in the U.S., compared to only 4,000 in 1999
  • Spas received 160 million visits in 2012
  • Revenue for the spa industry totaled $14 billion in 2012
  • In 1999, spas employed 150,000 people
  • In 2013, spas employ 340,000 people

Since the 1990s, the spa industry has tripled and quadrupled in size and income. If your spa has grown in recent years, it may be time to update your liability coverage. Each added employee and treatment increases your risk of litigation, and your old policy may not include the new technicians and procedures. Also, if you have added any new equipment to your offices or treatment rooms, you probably need to update your property coverage to include the new additions.

Whether you need to update your policy or purchase spa insurance for the first time, an independent agent can help you make sure you are completely covered against the expense of litigation, property damage, and theft.

Basic Spa Insurance for Every Spa Owner

No matter what kind of spa you own or what kinds of services you provide to your clientele, you probably need these basic forms of insurance coverage:

  • Property coverage: This insures your buildings, inventory, and equipment against damage and loss due to storm, fire, or crime.
  • General liability: This pays the expense of litigation due to an accident on the premises, such as slips and falls, burns, or other incidents that occur outside of treatment. It covers the plaintiff's medical expenses, as well as court ordered damages, fees, and your legal defense, up to the limits of your policy.
  • Business interruption insurance: This covers your operating expenses and payroll while your business recovers from a disaster, such as a storm, fire, or burglary.

Medical Spas Need Special Coverage

The most important coverage for a medical spa is professional liability for each employee who provides treatment. If a client alleges injury as a result of treatment in your spa, your liability policy can cover the cost of your settlement, including damages for pain and suffering. It also covers court fees and your legal defense, up to the limits of your policy.

Because medical spas often perform procedures involving anesthesia, harsh chemicals, laser treatments, and injections, it is especially important to make sure that the professional liability policy you choose covers all of the services your spa provides.

A comprehensive professional liability policy would include:

  • Malpractice, which kicks in when a client files a claim accusing someone in your practice of a mistake in treatment, leading to injury
  • Sexual allegations, which covers your employees for the cost of legal defense if a customer alleges sexual misconduct during treatment
  • HIPPA and disciplinary proceedings, which pays for legal defense if your spa is charged with a HIPPA infraction
  • Retroactive liability, which covers any claims that arise from treatments conducted before liability coverage begins, since lawsuits may arise months after an incident occurs

Other forms of coverage your medi-spa may need include:

  • Product liability, which covers litigation involving an injury due to equipment failure, such as a laser treatment malfunction, or allergic reaction to an injection
  • Anesthetist liability, which protects you from the expense of a lawsuit involving a Registered Nurse Anesthetist in your employ
  • Cyber liability, which pays for the cost of litigation brought against you due to a data breach or cyber crime that compromises client information
  • Regulatory fines and penalties, which covers the cost of an accidental infraction

Day Spa Insurance Protects Your Business

Your day spa may employ massage therapists, estheticians, personal trainers, and other technicians to provide relaxation, skin care, weight loss and other services to your clients.

The following forms of coverage can protect you financially if one of your clients brings a lawsuit against you after treatment:

  • 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 the limits of your coverage, if someone files a claim of malpractice or sexual misconduct. It is important to make sure that each type of service you provide is included in your professional liability policy.
  • Products liability: This covers a claim against you if a client alleges injury due to equipment failure, such as a tanning bed injury, allergic reaction to a chemical, or burn due to a heating element malfunction.

Other forms of day spa insurance you may need include:

  • Child care coverage, if you provide babysitting services for your clients during treatment
  • Renters liability, which pays for damage to the space your spa rents
  • Fire liability, 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, so that you have the financial protection you need if a client, vendor, or government agency brings a lawsuit against the spa. Many spa insurance policies exclude certain services from coverage, so it is important to examine your policy carefully to be sure there are no gaps in coverage.

Now, who's ready to get their insurance problems solved?