Day Spa Insurance Policy Information
Day Spa Insurance. If you own a day spa or a medical spa in, then the services you provide and the treatments you offer require you to interact with customers on a personal level.
The personable contact you are involved in puts you at an added risk for liability, but this risk is easily mitigated with the right level of day spa insurance for your business.
In particular, medical spas face huge risks when their clients are injured or become ill as a result of treatment. Likewise, people who expect results from their treatments that they do not see after treatment also pose a risk for liability. Arming yourself with spa insurance makes a lot of sense.
Day spa insurance protects your business from lawsuits with rates as low as $47/mo. Get a fast quote and your certificate of insurance now.
Below are some answers to commonly asked day spa insurance questions:
- What Is Day Spa Insurance?
- How Much Does Day Spa Insurance Cost?
- Why Do Day Spas Need Insurance?
- What Type Of Insurance Do Day Spas Need?
- What Does Day Spa Insurance Cover & Pay For?
What Is Day Spa Insurance?
Day spa insurance is a type of insurance policy designed specifically for day spas. This insurance covers the risks associated with running a day spa business, including property damage, liability for injury or harm to clients, and loss of income in the event of a disaster. The coverage may also include employee benefits, product liability, and professional liability for licensed professionals such as massage therapists and estheticians.
Day spa insurance can help protect the spa owner from financial loss and provide peace of mind knowing that the business is protected against unexpected events.
How Much Does Day Spa Insurance Cost?
The average price of a standard $1,000,000/$2,000,000 General Liability Insurance policy for small day spas ranges from $47 to $99 per month based on location, serviced offered, payroll, sales and experience.
Why Do Day Spas Need Insurance?
The spa industry is on the rise in the United States. There are more than 20,000 spas today, as compared to 1999's level, which was roughly 4,000. Revenue from spa visits in 2012 alone amounted to $14 billion, and spas employ more than 340,000 people.
This represents more than a quadrupling in the industry as compared to the late 90s. Perhaps your spa has also seen an uptick in customers in the past few years, and if so, it's time to review your spa's liability policy and the coverages you have in place to protect your business.
Each employee that you've added and each new type of procedure you offer increases the chances that something can go wrong, no matter how professional you and your staff are.
If you have purchased new equipment, it also pays to make sure that your insurance protects you from equipment loss, theft, vandalism, and shutdown or malfunction with the right type of amount of property coverage for the business.
Just a single major claim against a spa can drain its assets and capital, resulting in the business closing. Protecting your spa from financial ruin, however, is straight forward - purchase a comprehensive policy that protects you from all potential perils.
Back in 2009, a jury awarded a half-million-dollar judgement to a patron from a medical spa in North Carolina. Apparently, the women had contracted a blood infection while having a stomach-fat reduction procedure performed.
Similarly, a medical spa in Chicago was sued in 2007 by a woman who went in for laser hair removal and came out with burns on her legs. She received $100k for her injuries in a case that was settled prior to going to trial.
Because medical spas are becoming more prevalent, and due to the personal and sensitive nature of their services, the industry is becoming a huge target among litigious clients. Spas are oftentimes hit with large malpractice suits that may grow to become million-dollar claims once legal fees and monetary awards are factored in.
Updating your day spa insurance policy and reviewing it for its thoroughness is as simple as working with a seasoned agent who understands your unique needs.
An agent with experience in the industry will also know how to write the policy you need to guard you from financial fallout resulting from litigation and claims.
What Type Of Insurance Do Day Spas Need?
There are some basic types of coverage that every spa owner and employees need. These include:
- Property insurance. This insurance type covers your equipment, inventory, buildings, and more from potential loss due to criminal activity, fire, or weather.
- General liability coverage. This type of insurance pays for your expenses if you are sued to accidents or injuries that occur on your premises. This covers slip-and-fall accidents, malpractice claims, burns, and other potential problems.
- Business interruption coverage. This policy covers payroll and operating expenses when the business is recovering from burglary, fire, storm damage, or other perils.
Special Coverage for Medical Spas
One of the most crucial types of coverage for medical spas is known as professional liability insurance. Each person working at your spa should be covered under professional liability coverage. This coverage kicks in to pay for damages that result when a client is injured or alleges she is. It pays for things like legal fees, pain and suffering, and actual damages.
Oftentimes medical spas perform procedures on patients that require laser treatments, harsh chemicals, injections, or even anesthesia. Because of this, the day spa insurance policy you choose should have far-reaching capabilities for many different unexpected scenarios.
Usually, a blanket liability coverage policy covers malpractice in the even that someone accuses your facility of wrongdoing that leads to injury. It can also cover allegations of sexual misconduct.
It should also cover HIPPA and disciplinary proceedings if your facility is accused of infractions against HIPPA policies.
Some other types of day spa insurance to consider include:
- Product liability insurance. This coverage protects your business if a patient is injured due to malfunctioning equipment. For example, a laser malfunctions and causes or a patient is allergic to an injection.
- Cyber liability. If your business faces a claim brought about by a breach in data on your website, then this coverage protects you from financial harm.
- Anesthetist liability. This coverage ensures that your business is not harmed by the action of anesthetists working for you.
What Does Day Spa Insurance Cover & Pay For?
Day spas, like any other businesses, can face various legal challenges that may result in lawsuits. Some common reasons why day spas may be sued include:
Personal injury: Customers or employees may suffer injuries while on the premises of the day spa, such as slip-and-fall accidents, burns from hot stones or wax, allergic reactions to products, or injuries during massages or other treatments.
Example: A customer slips and falls in the day spa's bathroom, resulting in a broken arm and medical expenses.
Insurance coverage: General Liability Insurance can help cover the costs of legal defense and settlements or judgments related to personal injury claims.
Professional liability: Day spa employees, such as massage therapists, estheticians, or nail technicians, may make mistakes or provide negligent services that result in harm to customers, such as incorrect treatment techniques, allergic reactions, or infections.
Example: A customer develops a skin infection after receiving a facial treatment at the day spa due to improper sanitization procedures.
Insurance coverage: Professional Liability Insurance, also known as Errors and Omissions (E&O) Insurance, can help cover the costs of legal defense and settlements or judgments related to professional liability claims.
Sexual harassment or misconduct: Day spa employees or other customers may engage in sexual harassment or misconduct, such as inappropriate touching, comments, or behavior, leading to claims of emotional distress, mental anguish, or other damages.
Example: A customer alleges that a day spa employee made inappropriate comments and touched her inappropriately during a massage session, causing emotional distress.
Insurance coverage: Employment Practices Liability Insurance (EPLI) can help cover the costs of legal defense and settlements or judgments related to claims of sexual harassment or misconduct.
Property damage: Day spa facilities, equipment, or inventory may be damaged or destroyed due to fire, water leaks, vandalism, or other unforeseen events.
Example: A fire breaks out in the day spa's sauna, causing extensive damage to the facility and its contents.
Insurance coverage: Commercial Property Insurance can help cover the costs of repairing or replacing damaged property, as well as business interruption losses resulting from property damage.
Data breaches: Day spas may collect and store sensitive customer information, such as credit card numbers, addresses, and health records, which could be vulnerable to data breaches or cyber attacks.
Example: The day spa's customer database is hacked, resulting in a data breach and potential identity theft of customers' personal information.
Insurance coverage: Cyber Liability Insurance can help cover the costs of legal defense, notification and credit monitoring for affected customers, and potential lawsuits related to data breaches.
Insurance can provide essential protection for day spas by helping to cover the costs of legal defense, settlements, or judgments related to lawsuits. It is important for day spa owners to carefully review their insurance policies and work with a qualified insurance professional to ensure they have appropriate coverage tailored to their specific needs and risks.
Commercial Insurance And Business Industry Classification
- SIC CODE: 7991 Physical Fitness Facilities
- NAICS CODE: 812199 Other Personal Care Services
- Suggested Workers Compensation Code(s): 9063 Health or Exercise Institute & Clerical
Description for 7991: Physical Fitness Facilitiesd
Division I: Services | Major Group 79: Amusement And Recreation Services | Industry Group 799: Miscellaneous Amusement And Recreation
7991 Physical Fitness Facilities: Establishments primarily engaged in operating reducing and other health clubs, spas, and similar facilities featuring exercise and other active physical fitness conditioning, whether or not on a membership basis. Also included in this industry are establishments providing aerobic dance and exercise classes.
Day Spa Insurance - The Bottom Line
Learn more about day spa insurance for your business. This insurance is a must for estheticians, massage therapists, personal trainers, and other professionals who provide weight loss, skin care, and other types of services.
Find the right policy for your business, or choose updates and riders for your policy to make it truly reflective of your business needs by talking with a licensed and professional agent now.
Additional Resources For Health & Beauty Insurance
Learn about small business health and beauty insurance coverages that help protect tattoo artists, salons, spas, estheticians, cosmetologists, barbers, hairdressers, nail salons and more from legal liability.
- Barber Hair Dresser
- Beauty Salon
- Day Spa
- Diet Nutrition Services
- Massage Therapy
- Medical Spa
- Nail Salon
- Permanent Cosmetics And Microblading
- Personal Trainer
- Tanning Salon
- Weight Loss Center
The health and beauty industry is a highly regulated sector, with strict rules and guidelines in place to ensure the safety and effectiveness of the products and services being provided. In addition to meeting these regulatory requirements, businesses in this industry also face a number of other risks and potential liabilities. For example, customers may suffer adverse reactions to products, or employees may suffer injuries while providing services. In these cases, the business could be held liable for any resulting damages or losses.
Business insurance can help protect a health and beauty business from these types of risks by providing financial coverage in the event of a claim or lawsuit. For example, a commercial insurance policy may provide coverage for medical expenses or damages that result from a product liability claim. It may also cover legal fees and other costs associated with defending the business against a claim.
In addition to protecting against financial losses, insurance can also help protect the reputation of a health and beauty business. If a business is sued or faces a costly claim, it can damage the business's reputation and negatively impact its bottom line. By having insurance in place, a business can show its customers and clients that it is prepared for any potential risks and is committed to protecting their safety and well-being.
Overall, commercial insurance is an important consideration for any business, but it is especially important in the health and beauty industry due to the unique risks and liabilities that businesses in this sector face. By having the right insurance coverage in place, businesses can protect themselves, their customers, and their employees, and ensure that they are able to operate with confidence and security.
Minimum recommended small business insurance coverage: Business Personal Property, Business Income with Extra Expense, Employee Dishonesty, Valuable Papers and Records, General Liability, Professional Liability, Umbrella Liability, Hired and Non-owned Auto Liability & Workers Compensation.
Other commercial insurance policies to consider: Building, Earthquake, Flood, Leasehold Interest, Real Property Legal Liability, Accounts Receivables, Bailees Customers, Fine Arts, Cyber Liability, Employment-related Practices, Environmental Impairment, Liquor Liability, Business Automobile Liability and Physical Damage, Garagekeepers and Stop Gap Liability.