Medical spas offer clients a range of medical treatments, including Botox injections, chemical peels, and even laser hair removal. All procedures come with some risk and are usually more advanced than the ones at an average day spa.

Given the complexity and severity of the risks, insurance is of great importance. 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, the additional burden of legal fees ensues.

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

What Is Medical Spa Insurance?

Medical spa insurance is a policy package designed for the needs of medical spas. This is a growing business sector: it increased by 18% per year in the 2010s. Insurance companies have developed products to assist this booming sector, catering to the specific set of risks the industry entails.

Why Do You Need Medical Spa Insurance?

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

Even if you maintain the highest standards, things can go wrong and not just with clients. A fire could burn down the spa building, the equipment could malfunction, employees could fall ill or injure themselves. Insurance helps ensure you can practice safely and gives you peace of mind when you know that your livelihood is not at risk at the first sign of a mistake.

Which Coverages Are Included?

There are a myriad of different insurance products on the market. It is a lot to go through. Here are the ones most useful for medical spas:

• General liability insurance – This policy will cover any bodily injury or damage caused to another person or business. Additionally, it will cover the legal fees and any settlement costs 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 will be covered for repairing or rebuilding the property. You will also be covered for the contents of the property, according to your specific policy. 
• Business owners’ policy – A business owners’ policy combines general liability and commercial property insurance into one policy bundle. It can help reduce costs.
• 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 your business caused, you will be covered. Both legal fees and any settlement will be paid.
• Workers’ compensation – In most states you are required to take out workers' compensation for any illness or injuries your employees sustain while at work. 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 consider purchasing:

• Cyber insurance – If you maintain a digital database containing your patients' medical details, you can be vulnerable to a cyberattack. Following such an event, you can be ransomed for the information, which, if revealed, can lead to a series of lawsuits from disgruntled clients. Cyber insurance will cover the costs of any lawsuits, the revenue lost due to the attack, and even the ransom's value.
• Commercial auto insurance – If you run a company car or other vehicle, you will need to purchase auto insurance. It can cover either yourself or an employee being behind the wheel.

How to Save Money on Medical Spa Insurance?

When purchasing insurance, you cover any future risk you might occur. So, if a procedure were to go wrong, you will not see financial ruin. However, you can still attempt to save money on the policy itself. Follow these tips when purchasing your policy:

• Maintain equipment – Any machinery or devices used in the spa should be monitored and checked at least annually for electrical or device faults.
• Train your staff – Naturally, your team will have the highest level of training. However, it is essential to review procedures and ensure everyone is following the best standards.
• Combine policies – Many insurance companies bundle policies together for medical spas, leading to reduced costs. This is known as a bundle discount.
• Shop around – Whether purchased separately or in a bundle, get multiple quotes, to find the best deal on the market. 
• Pay in full – Paying the entirety of your insurance bill annually, rather than monthly, can save a significant amount of money.
• Security – Locks and burglar alarms secure your physical property. In comparison, cybersecurity systems will prevent theft or ransom of patient information.
• Raise your deductibles – Increasing your deductibles will lead to lower premiums; however, you will need to find extra cash in the event of a claim.
• Discounts – Always ask for a discount when purchasing insurance, you never know what offers an insurance company is running.
• Fire safety – Installing sprinklers, fire alarms, and fire extinguishers will reduce the risk of a severe fire, thereby lowering your premiums.

---

Need some help with picking out the right policy or just want to submit a request for a medical spa insurance that covers all your needs? Email us, call us, or fill out the free quote form on our website.