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Medical Spa Insurance – Protect Your Business in Massachusetts | Free Quotes

Medical spas offer clients a range of medical treatments, including Botox injections, chemical peels, liposuction, and laser hair removal. This is a growing business sector: the average revenue for a medical spa in the U.S. increased by 9% between 2017 and 2018.

All procedures come with some risk, especially since most of them require more advanced technology than the treatments offered at a typical day spa. Given the complexity of the procedures and the severity of the risks, it is important to insure your business. If a procedure goes wrong and leads to cosmetic and medical complications, then the medical spa is expected to pay for the damage. If there is a lawsuit, there is the additional burden of legal fees.

To protect your business, you need to be covered for all the eventualities. Additionally, you need to meet specific legal requirements to operate your business legally. This article covers the policies medical spas need and also gives some tips for saving money on purchasing insurance. 

A woman lying on a table and receiving a treatment at a medical spa

What Is Medical Spa Insurance?

Several insurance companies have taken note of the industry’s growth and have combined insurance policies that cater specifically to the needs of the medical spa industry, calling it the medical spa insurance. Many procedures at medical spas are invasive and can cause injuries or people might sue the company if they are not happy with the results – medical spa insurance accounts for those risks.

Why Do You Need Medical Spa Insurance?

Medical spas aim to deliver the best quality care and provide services that improve the appearance and health of their patients. Needles and drugs, chemicals, and machinery pose a range of different risks.

Even if you maintain the highest standards, things can go wrong with your property, employees, and clients. For example, a fire could burn down the spa, the equipment could malfunction and injure a client, an employee could slip and fall. Insurance gives you peace of mind when you know that your livelihood is not at risk when a mistake or accident happens.

Which Coverages Are Included?

There are a myriad of different insurance products on the market, which can make choosing the right coverage a long and tedious process. Here are the policies most important for medical spas: 

  • General liability insurance This policy covers any bodily injury or damage inflicted on another person or business. Additionally, it will cover the legal fees and settlement costs resulting from the initial damages.
  • Commercial property insurance – In the event the premises you rent or own become damaged, either by fire, vandalism, or other causes, you are covered for repairing or rebuilding the property. You are also covered for the contents of the property to the extent specified in your policy. 
  • Business owners’ policy – The business owners’ policy combines general liability and commercial property insurance into a bundle, which is usually cheaper than buying the policies individually.
  • Errors and omissions – Also known as professional liability insurance or malpractice insurance. If you receive a lawsuit due to an illness, injury, or an infection that the client claims was caused by your business, you will be covered by insurance. Legal fees and any settlement payouts also fall under this coverage.
  • Workers’ compensation – In most states you are required to take out workers' compensation for any illnesses or injuries your employees sustain while at work or due to their job. Additionally, if an employee decides to file a lawsuit, you will be covered for legal fees. 

In addition to the more general policies described above, there are other policies you may want to consider:

  • Cyber insurance Most businesses these days use digital databases to store, keep track of, and manage information about their clients. Medical spas also need to keep track of some of their patients' medical information. A cyberattack that corrupts or steals that information can cause a lot of harm to the company. Moreover, criminals can use that information for extorting money and if the information is shared with the public or to blackmail your clients, your business will probably also be sued. Cyber insurance can cover the costs of any lawsuits, the revenue lost due to the attack, and even the ransom's value. The precise coverage will be determined by your policy.
  • Commercial auto insurance – If you own company cars or other vehicles, you are going to have to purchase commercial auto insurance. The insurance covers both you and employees if they cause an accident while driving the company vehicle. 

A woman lying on a table with her eyes closed at a medical spa while a professional is giving her a treatment

How to Save Money on Medical Spa Insurance?

When you purchase insurance, you prepare yourself for the business risks and avoid any damaging financial hits, so if a procedure goes wrong, you will not lose your company. However, you can still choose to save money on the policy itself. Keep in mind these tips when purchasing insurance:

  • Maintain equipment All the machinery and devices used at the spa should be checked at least annually for any electrical or technical faults. Regular maintenance also demonstrates to the insurance company that you are keeping the risks low and lower risk equals lower insurance costs.
  • Train your staff – Naturally, you want to choose the best people with the highest level of training for your team. In addition, it is essential to regularly review and update procedures to ensure that everyone knows and is following the latest standards.
  • Combine policies Many insurance companies can bundle policies together, which usually leads to reduced costs thanks to the bundle discount.
  • Shop around – Whether purchasing policies separately or in a bundle, get quotes from multiple insurance companies to find the best deal on the market. 
  • Pay in full – Paying the entirety of your insurance bill annually, rather than monthly, can help your company save a significant sum in the long run.
  • Security Install good quality locks and burglar alarms to secure the business premises and install the latest cybersecurity systems to prevent cyber attacks. As mentioned above, lowering risks can also reduce the cost of insurance.
  • Raise your deductibles – Increasing your deductibles will lead to lower premiums, but you should consider it only if you are certain that you will have enough savings for covering the higher deductible cost in the event of a claim.
  • Discounts – Always ask for a discount when purchasing insurance to find out if the insurance company has special offers or campaigns going on.
  • Fire safety – Installing sprinklers, fire alarms, and fire extinguishers will reduce the risk of a severe fire and the size of fire damage, thereby lowering your premiums.

Need some help with picking out the right policy for your medical spa or just want to learn more about your options? Email us, call us, or fill out the free quote form on our website.

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