Medical Spa Insurance Policy Information
Medical Spa Insurance. Medi spas combine cosmetic beauty and relaxation treatments with health care services normally only available at a doctor's office. Cosmetic amenities are provided by estheticians, and services include electrolysis, facials, hair care, manicures, massages, nutritional counseling, pedicures, and tanning.
Medical services, such as Botox treatments, chemical peels, dermal fillers such as Restylane and Juvederm, laser hair removal, light treatment for acne, liposuction, microdermabrasion, permanent makeup, skin corrections and other minor surgical treatments are performed by a medical doctor.
Before offering medical procedures, the medical director evaluates each client. Records are established and maintained accordingly. While most of these establishments are day spas, some provide food, and/or lodging for extended stays.
There are certain risks that are associated with owning and operating a medical spa. Since you offer dermatological treatments, such as laser treatments, chemical peels, and Botox, and are working with your clients in such an intimate capacity, you and your staff work with technologies that alter physical appearances and have the potential to cause adverse effects.
Because of the nature of your business and the inherent risks that are associated with it, protecting medical spa with the right type of medical spa insurance coverage is vital.
Medical spa insurance protects your facility from lawsuits with rates as low as $97/mo. Get a fast quote and your certificate of insurance now.
Below are some answers to commonly asked med-spa insurance questions:
- What Is Medical Spa Insurance?
- How Much Does Medical Spa Insurance Cost?
- Why Do Medi Spas Need Insurance?
- What Type Of Insurance Should Medi Spas Have?
- What Are Medi Spa Risks & Exposures?
- What Does Medical Spa Insurance Cover & Pay For?
What Is Medical Spa Insurance?
Medical spa insurance is a type of insurance that covers the risks associated with operating a medical spa.
This type of insurance typically includes coverage for medical malpractice, general liability, property damage, and loss of income. It may also include coverage for specific treatments or procedures offered at the spa, such as laser hair removal or Botox injections.
The coverage can be tailored to the specific needs of the medical spa and can be purchased as a standalone policy or as part of a comprehensive package.
How Much Does Medical Spa Insurance Cost?
The average price of a standard $1,000,000/$2,000,000 General Liability Insurance policy for small medical spas ranges from $97 to $149 per month based on location, procedures offered, payroll, sales and experience.
Why Do Medi Spas Need Insurance?
Medical spas, also known as medi-spas, offer a range of healthcare services in a more relaxed and spa-like setting. These services can include cosmetic procedures, laser treatments, and other medical treatments that require trained professionals.
As with any business that provides medical services, it is important for a medical spa to have insurance in order to protect against potential risks and liabilities.
One reason why medical spas need insurance is to protect against malpractice lawsuits. Even with the most skilled and competent professionals, mistakes can happen. Insurance can help cover the costs of legal fees and damages in the event of a lawsuit.
Another reason is to protect against equipment malfunctions or damage. Medical spas often use expensive and specialized equipment, such as lasers and injectables. If something were to go wrong with this equipment, it could cause harm to clients and result in costly repairs or replacements. Insurance can help cover these costs and ensure the smooth operation of the business.
Should something go wrong, you could be looking at costly expenses that have the potential to cause significant financial damage. For these reasons, carrying the right type of insurance coverage is vital. medical spa insurance safeguards you from the above-mentioned risks, and more, and can prevent you from losing a substantial amount of money.
What Type Of Insurance Should Medi Spas Have?
In order to properly protect yourself from the risks that are associated with owning a medical spa and the exorbitant costs that you could be held liable for, there are several types of insurance coverages that you should have in place. Some of the most highly recommended forms of coverage include:
- Commercial General Liability - This type of insurance coverage protects you from any third-party accidents or injuries that could arise on your commercial property. It also protects you from any legal disputes that may arise as a result of any accidents or injuries that occur on your property.
- Errors and Omissions - Also referred to as professional liability or medical malpractice insurance, this type of coverage protects you against lawsuits that may be filed against you if a client claims the services you provide caused an illness, an injury, or an infection.
- Commercial Property - If your medical spa is damaged as a result of an act of vandalism or a fire breaks out, commercial property insurance will help to pay for the necessary repairs. It also covers the contents within your medical spa, including the equipment and tools that you use to treat your patients, so if machinery is stolen, your policy will protect you from the financial losses.
- Workers' Compensation - As the proprietor of a medical spa, you are responsible for any injuries or illnesses that your employees sustain. Workers' comp insurance will cover the cost of medical care that your staff requires as a result of a work-related accident or illness, as well as lost wages. It will also help to cover the cost of any legal action a staff member may take against you.
These are just a few of the medical spa insurance policies that medi spa operators should carry.
What Are Medi Spas Risks & Exposures
Premises liability exposures are moderate due to the number of clients at the facility. A high standard of care is required when health care services are provided. To prevent trips, slips, and falls, all areas accessible to patients must be well maintained with floor covering in good condition. Aisles and walkways must be adequate and free of hair clippings and debris.
Exits must be adequate in number, well marked and with backup exit lighting provided in case of power failure. Steps should have handrails, be illuminated, marked, and in good repair. Housekeeping should be excellent and spills must be cleaned up promptly.
Parking lots and sidewalks need to be in good repair with snow and ice removed promptly. Security of visitors in parking areas is often deemed the responsibility of the owner or operator of the premises. Factors to consider include exterior lighting, fencing, and any other security measures.
Tanning services may require the use of specialty insurance markets because of the relatively unknown loss potential from long-term exposure to radiation and the possibility of contracting cancer and related diseases.
If all or most of the professionals providing services at the spa are independent contractors, the insured's responsibility is similar to a general contractor's responsibility to its subcontractors. In these cases, injuries to independent contractors are part of the premises liability exposure and are not workers compensation exposures.
Maintaining a patient's privacy is critical. Examination rooms, check-in and checkout stations must be in private areas so one client cannot view information or overhear conversations regarding another client's confidential information.
Professional liability exposures are from the services provided by estheticians and physicians. The exposure increases if the spa fails to conduct thorough background checks to verify employees' credentials, education, and licensing if required by the state. Typical minimally invasive health care treatments are Botox treatments, dermal fillers such as Restylane and Juvederm, laser hair removal, liposuction, permanent makeup, microdermabrasion, skin corrections, and similar treatments.
Needles and other equipment must be sterilized and sanitized to prevent the spread of blood-borne infectious diseases such as hepatitis, HIV, and AIDS. Finally, inappropriate touching and sexual misconduct must be considered. If independent subcontractors are used, the applicant should verify that they have separate professional liability coverage.
Product liability exposures are for the products sold by the spa to the client for use after leaving the premises, such as shampoos, creams, body lotions, and cosmetics. Some spas supply dietary supplements, vitamins, nutraceuticals, and other ingestible items. If the spa sells non-standard, independently produced, or proprietary products, its exposure is that of a manufacturer.
Workers compensation exposures are due to the possible transmission of disease from a client. Gloves and masks must be worn at all times when working around any bodily fluids. Minor cuts, scratches, and abrasions occur with some frequency and may result in infection. Eye and skin irritation resulting from chemicals can also cause losses. Strains and sprains may occur as a result of aiding clients.
An employee may be injured due to inappropriate activity by a customer. Because patient information and billings are done on computers, potential injuries include eyestrain, neck strain, carpal tunnel syndrome, and similar cumulative trauma injuries that can be addressed through ergonomically designed workstations.
Some spas have mostly independent contractors and very few employees. While the contractual relationships between the spa and the independent contractors determine the workers compensation exposure, regulatory definitions of employee may supersede the contract terms.
Property exposures depend on the services provided. If the spa is primarily a physician's office, property will be limited to medical equipment used to perform procedures and standard office furnishings. Ignition sources include electrical wiring, heating, and air conditioning, and overheating of equipment. The equipment is highly susceptible to damage and must be maintained in a sterile condition.
If the spa is primarily for relaxation and cosmetology, providing only minor health care services, property exposures will include accumulations of hair clippings and any cooking operations conducted. Regardless of the type of operation, all electrical wiring must be up to code and equipment properly maintained. Excellent housekeeping is required and smoking should be prohibited. Business income and extra expenses may be a concern if the facility requires special equipment due to the time needed for repair or replacement.
Property of others exposures may be significant if employees or independent contractors supply their own equipment.
Equipment breakdown exposures are high if operations are dependent on medical equipment being available. All equipment should be maintained on an ongoing basis.
Crime exposures are usually minor. Most transactions are completed using credit cards, limiting the opportunity for theft. Ordering, billing and disbursement transactions should be handled as separate duties. Inventories and audits should be performed regularly. While guests' property is normally kept in a safe or locker on premises, it can be stolen by employees or other guests. Employee dishonesty coverage does not apply to independent contractors so their access to money and inventory should be limited.
Inland marine exposures include accounts receivable if the spa bills customers for its services, audio/visual equipment, computers, physicians and surgeons equipment (which can be extended to include all office furnishings), and valuable papers and records for clients' and suppliers' information. Physicians and surgeons equipment includes items that doctors may take off site to handle emergencies. Duplicates of all records and programs should be kept off site.
Business auto exposure is generally limited to hired and non-owned liability for employees running errands. If there are owned vehicles, all drivers should be licensed with acceptable MVRs. Vehicle maintenance should be ongoing and documented.
What Does Medical Spa Insurance Cover & Pay For?
As with any healthcare-related business, medical spas can face various risks that may result in lawsuits. Some common reasons why medical spas may be sued include:
Medical Malpractice: Medical spas often offer cosmetic procedures such as injectables, laser treatments, and other medical treatments. If a client experiences an adverse outcome or injury due to negligence or error in providing these services, they may file a medical malpractice lawsuit. For example, if a client suffers from a severe allergic reaction to a cosmetic product used during a treatment, they may file a lawsuit against the medical spa.
How insurance helps: Medical spas typically carry professional liability insurance, also known as malpractice insurance, which can provide coverage in the event of a medical malpractice lawsuit. This insurance can help cover legal fees, court costs, and damages awarded to the plaintiff if the medical spa is found liable.
Slip and Fall Accidents: Medical spas often have various equipment, fluids, and other hazards that could pose a risk of slip and fall accidents. For instance, a client may slip on a wet floor in a treatment room or trip over clutter in a hallway, resulting in injuries such as fractures or sprains.
How insurance helps: Medical spas typically carry general liability insurance, which can provide coverage for slip and fall accidents. This insurance can help cover medical expenses, lost wages, and other damages awarded to the injured party if the medical spa is found liable.
Product Liability: Medical spas may sell or use cosmetic products, such as skincare products or beauty devices, that could cause harm to clients. For example, if a client experiences an adverse reaction to a skincare product purchased from the medical spa or suffers a burn from a faulty beauty device, they may file a product liability lawsuit against the medical spa.
How insurance helps: Medical spas typically carry product liability insurance, which can provide coverage in the event of a product-related lawsuit. This insurance can help cover legal fees, court costs, and damages awarded to the plaintiff if the medical spa is found liable.
Employee-related Issues: Medical spas may face lawsuits related to employment practices, such as wrongful termination, discrimination, or harassment claims filed by employees.
How insurance helps: Medical spas typically carry employment practices liability insurance (EPLI), which can provide coverage for employee-related lawsuits. This insurance can help cover legal fees, court costs, and damages awarded to the plaintiff if the medical spa is found liable.
Property Damage: Medical spas may have valuable equipment, furnishings, and other property that could be damaged due to accidents, theft, or natural disasters.
How insurance helps: Medical spas typically carry property insurance, which can provide coverage for property damage. This insurance can help cover the cost of repairing or replacing damaged property.
It's important to note that insurance policies and coverage can vary, and it's essential for medical spas to work with a qualified insurance professional to assess their specific risks and obtain appropriate insurance coverage to protect their business from potential lawsuits. In the event of a lawsuit, the insurance coverage can help mitigate financial losses by covering legal costs, damages, and other expenses associated with the lawsuit, depending on the policy terms and conditions.
Commercial Insurance And Business Industry Classification
- SIC CODE: 8093 Specialty Outpatient Facilities, Not Elsewhere Classified
- NAICS CODE: 812199 Other Personal Care Services, 621111 Offices of Physicians (except Mental Health Specialists), 621399 Offices of All Other Miscellaneous Health Practitioners, 812112 Beauty Salons
- Suggested Workers Compensation Code(s): 9063 Health or Exercise Institute & Clerical, 8832 Physician & Clerical
Description for 8093: Specialty Outpatient Facilities, Not Elsewhere Classified
Division I: Services | Major Group 80: Health Services | Industry Group 809: Miscellaneous Health And Allied Services, Not Elsewhere Classified
8093 Specialty Outpatient Facilities, Not Elsewhere Classified: Establishments primarily engaged in outpatient care of a specialized nature with permanent facilities and with medical staff to provide diagnosis, treatment, or both for patients who are ambulatory and do not require inpatient care. Offices and clinics of health practitioners are classified according to their primary activity in Industry Groups 801 through 804.
- Alcohol treatment, outpatient clinics
- Biofeedback centers
- Birth control clinics (family planning)
- Drug treatment, outpatient clinics
- Outpatient detoxification centers
- Outpatient mental health clinics
- Outpatient treatment clinics for alcoholism and drug addiction
- Rehabilitation centers, outpatient (medical treatment)
- Respiratory therapy clinics
Medical Spa Insurance - The Bottom Line
To find what specific medical spa insurance policies you should invest in, how much coverage you should carry - and how much your coverage will cost - speak to a professional insurance agent that specializes in insuring medi spas.
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.