Medical Spas, also known as MediSpas, are a unique part of both the medical and beauty communities. Since they are a part of both industries, they require a unique type of insurance coverage that protects the business owner, the employees and the clients. While it may seem as though a regular business owner’s policy can provide accurate protection to cover regular day-to-day MediSpa operations, there are several risks associated with a medical spa that require some additional coverage. With MediSpa insurance, business owners can adequately prepare for the worst-case scenario and provide both their staff and clients with the most comprehensive insurance policy available.
While MediSpas are thought of as a relatively new type of business, the level of liability risk associated with the procedures performed is nothing new. Many of the cosmetic procedures offered at MediSpas require a physician’s oversight; these procedures require a higher level of liability risk. Whether you are a physician working at a MediSpa or a non-physician MediSpa owner, it is important that you invest in the right level of insurance protection with your local insurance agents at Marine Agency Insurance.
MediSpa Coverage: What Every Owner Should Know
You are always working to go above and beyond to offer the best possible service for your clients, so it only makes sense that you invest in an insurance policy that offers the same level of protection. Accidents can happen even when providing the highest level of patient care, so it always pays to be protected. Just like every medical spa is different from one another, every insurance policy is a little different too. Luckily, you can tailor the level of coverage to fit your needs with Marine Agency.
Liability coverage is a basic insurance need for any business, but when you work in the MediSpa industry, it is an absolute must have. This type of coverage is designed to help protect individual physicians or the business as a whole from being sued or found legally liable for common issues like malpractice, negligence or client injuries.
What Type of Coverage Does a MediSpa Need?
When it comes to protecting your assets, it is never a good idea to skimp on your insurance coverage. Since each MediSpa provides different levels of care to their clients, each MediSpa will require different levels of insurance coverage.
The 4 main types of MediSpa insurance coverage that you should consider include:
- 1. Professional Liability Insurance
- 2. General Liability Insurance
- 3. MediSpa Malpractice Insurance
- 4. Business Personal Property Insurance
Additional coverage options may include:
- 1. Workers Compensation Insurance – This is a mandatory insurance policy in most states across the US. It provides employees who were injured on the job with medical benefits and lost wages. This coverage also protects your business against lawsuits brought on by employees.
- 2. Business Interruption Insurance – Covers the business in the event that you are forced to suspend operations for a certain amount of time due to natural disasters or other professional issues.
- 3. Offsite Services Coverage – Protects the business for any off-site services like Botox parties. Keep your staff, equipment and clients safe when you’re practicing away from the office.
If you are interested in expanding your coverage, it is best to speak with an experienced local insurance agent to explore all of your coverage options.
When searching for the right level of coverage to suit your business needs, consider the following questions:
- Determine who needs coverage; your technicians, physicians or self
- Does your current policy cover Professional and General Liability?
- Do you have a deductible? Is it high?
- Is your spa equipment covered?
- Are all the services offered covered?
- Are all of your locations covered?
The Importance of Professional & General Liability Coverage for Medical Spas
A professional liability insurance policy is needed to cover your business and staff, including any aestheticians, laser technicians, physicians assistants, registered nurses, nurse practitioners, physicians or your medical director for any approved services performed on their behalf. While your staff may also choose to carry their own individual policies to protect themselves against liability claims, it is still a good idea to invest in coverage that protects your business in the event that a lawsuit is brought against you.
Some of the common services that may be covered include:
- Botox and/or Dermal Fillers
- Chemical Peels
- Laser Treatments
- Laser Hair and Tattoo Removal
- Tanning Services
- LED Teeth Whitening
- Massage Therapy
- Waxing
- Weight Loss Therapy
- Liposuction and Body Sculpting
- Microdermabrasion
- Permanent Makeup
- Hair Restoration
- Beautician Services
- Mesotherapy
Professional liability coverage provides your business and your staff with the defense you need to fight back against any claims of staff negligence or any accusation of possible errors in the services that were performed. Typically, the limit of liability available for MediSpa professional liability policies is $1,000,000 per claim with a total of $3,000,000 annual aggregate. Many policies are available with a low deductible or zero deductible and annual premiums typically ranging from $3,500 to $12,000 depending on the type of services offered and the number of employees employed. However, MediSpa owners should keep in mind that depending on certain needs, these numbers can vary greatly.
Additionally, many MediSpa owners practice under the common misconception that a medical director’s individual malpractice insurance coverage will protect the MediSpa’s staff and operations in the event of a liability claim. The majority of physician malpractice insurance providers do not cover MediSpa operations because it is outside of the traditional malpractice scope of services. This means it is very important for all MediSpas to carry their own general liability insurance policy that is expressly written in the name of the business or corporation.
Benefits of Malpractice Insurance Coverage for MediSpas
What is MediSpa Malpractice Insurance?
This type of insurance is extremely beneficial to MediSpa owners because it covers all of the nonsurgical procedures that they perform. Medical malpractice insurance typically covers business owners and/or the medical director, but not necessarily the individual technicians who work at the MediSpa. Relying solely on individual coverage can lead to major issues down the line in the form of litigation or other issues that could eventually cause your doors to close.
Why Should I Invest in MediSpa Malpractice Coverage?
While usually much less invasive than traditional cosmetic and other medical procedures, the treatments available at most medispas are subject to similar risks. Even though you may have invested in the most advanced equipment available, the newest technology on the market and the best staff possible, there is still a chance that something could go wrong during a routine procedure. The treatments and procedures offered at MediSpa occur in a relaxed and tranquil spa-like setting, so clients may see them as less serious or entirely risk-free. This common misconception can ultimately make MediSpas more vulnerable to potential lawsuits.
Aside from educating your clients on the risks associated with the services you offer at your medical spa, it is also important that you discuss your insurance options with a knowledgeable and experienced independent insurance agent to make sure you have the protection you need.
Does my General Liability Coverage Provide the Same Level of Protection?
Unfortunately, MediSpas that choose to only carry general liability are not protected against malpractice claims. The best way to protect your assets, employees and your clients is with a comprehensive policy. In most cases, MediSpa owners will choose to invest in a policy that offers several different coverage options that include both professional liability and general liability, as well as malpractice liability. This ensures that no matter the issue, you and your staff will be protected if an unhappy client decides to sue.
What Type of Issues Does Medical Spa Insurance Cover?
While you and your staff are continually striving to provide each client with the highest level of care, there are a great number of risks that are associated with the cosmetic medical procedures offered in the MediSpa industry.
Once thought of as the stuff of science fiction, lasers are now used in many different aspects of medical care. Not only do they help surgeons perform life-saving surgeries, but they are now available to use in MediSpas to aid in wrinkle reduction, hair removal and other cosmetic procedures. As the number of MediSpas offering laser procedures increases across the US, the number of in-office injuries is also rising. When accidents happen, clients may be left with severe injuries like dermatological burns or even scarring. Even with proper education and years of experience, operating a laser comes with great risk.
One of the biggest reasons for malpractice or liability claims for MediSpa professionals and businesses in the US are laser burns. Investing in the highest quality lasers and continued education for your staff are two great ways to prevent laser burns on clients, but the risk of injury is still high. In some cases, these injuries can go unreported by clients because they believe that these procedures are totally risk-free or they are unaware of what to look for. That is why it is so important to protect your business and your employees from the threat of litigation with total insurance protection.
Other common MediSpa services that carry an increased risk of dermatological issues include Botox injections, permanent makeup application and hair coloring treatments. If Botox is administered incorrectly, it can lead to nerve damage and other serious complications.
Other Common Medical Issues That May Be Protected
Even with the most up-to-date equipment, latest technology and a highly trained staff, the risks associated with MediSpa services are very high.
While dermatological issues are the most common issue that most MediSpas deal with, other liability issues include:
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- Permanent Cosmetic Mistakes
- Slips and Falls on Property
- Sexual Harassment or Abuse Claims (Massage Services)
Additional MediSpa Insurance Options
While certain businesses may be able to operate safely with a minimum level of insurance coverage, MediSpa owners should always explore their additional coverage options. When it comes to protecting your assets, your staff and your clients, finding the right level of protection to fit your needs and your budget is paramount. In addition to general liability and malpractice policies, you may want to consider investing in a few other specialized protection options as well. With the help of an experienced insurance agent from Marine Agency Insurance, you can discuss additional coverage options from top national providers that will give you the protection you need at a price that won’t break the bank.
Business Personal Property Insurance
This additional coverage option provides your business with an extra level of protection. Similar to personal property coverage that is available in most Homeowner’s policies, Business Personal Property coverage (BPP) protects almost all business items that aren’t considered a part of your business’ structure. This includes a company automobile or other fixture associated with the brick and mortar part of your MediSpa.
Common items protected under BPP coverage include:
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- Desks
- Chairs
- Tools
- Medical and Spa Equipment
- Appliances
- Furniture
- Electronic Equipment
- Computers
- Televisions
- Tablets
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When you operate a MediSpa, certain equipment necessary for the services offered can be very expensive. In many cases, the cost to replace just one piece of your medical or spa equipment could cause major issues with your cash flow. In the event of a natural disaster, damage by staff or customers or any other event outside of regular wear and tear, Business Personal Property coverage will cover the cost to repair or replace these important items.
Workers’ Compensation Coverage
There’s no way that you could run your MediSpa business without the help of your staff and this coverage option in the best way to protect them if they need to take time away from work due to an injury. If you are worried about paying out of pocket to help cover any medical treatment or lost wages that your employees may be entitled to after an injury, workers’ compensation has got you covered.
This is typically a mandatory insurance coverage that is used to protect your employees in the event of an injury or accident while on the job. Worker’s compensation insurance is required by law in most states and is the easiest way to protect your medical spa business from being sued by employees over workplace conditions that may cause illness or injury. Additionally, workers’ compensation coverage can help protect your employees by providing medical treatment, lost wage protection and more.
Other issues that workers’ compensation provides for include:
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- Temporary Disability Benefits
- Permanent Disability Benefits
- Vocational Rehabilitation Services
- Death Benefits
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With this additional coverage option, you can give your staff members peace of mind knowing they have an extra level of protection on their side in the event of a workplace injury.
Business Interruption Insurance
While there are many things you can do to protect your business against general liability claims or even workers’ compensation claims, there are certain things that you simply cannot avoid. For example, a business next to your catches on fire and the flames spread to your location. Even if everyone gets out safely, your MediSpa could suffer a great deal of smoke and fire damage, causing you to close your doors for weeks or months. To make matters even worse, some of your expensive medical and spa equipment was damaged in the fire. On top of all this, covering your employee’s wages while you’re closed is another added stress.
Whether you’re dealing with fire damage, storm damage or some other sort of natural disaster, Business Interruption Insurance can help protect your business and your employees until things are up and running again. This type of coverage is designed to cover wages, replaces lost or reduced income/profits and help you get back on your feet again.
Off-Site Services Coverage
One of the best things about operating a MediSpa is creating long-lasting relationships with your clients. One of the easiest ways to do this is by offering off-site services like Botox parties and other, non-invasive procedures. However, the risks of performing these types of medical procedures can greatly increase when you step away from the office and enter an unfamiliar environment. Even with the best and most experienced technicians and physicians performing your off-site services, accidents can happen.
With this comprehensive insurance coverage option, you can protect your business your employees and your clients while you’re on the go. Give yourself and your employees the peace of mind you need to provide the best in quality customer service when taking your services away from the office.
Keep Your Business Protected with Total MediSpa Insurance Coverage
Because you offer such a unique service to your clients, your business requires a special insurance policy to keep things running smoothly and protect against unique issues that may arise. Even though you may already carry basic liability and business insurance coverage, with the increased risk that follows MediSpa services, it makes sense to invest in an extra level of protection. No MediSpa owner wants to get caught without the right level of insurance coverage when they need it the most!
Every MediSpa owner across the US deals with a unique set of challenges that are unlike those that are often seen in the spa industry or the medical industry. That makes it very important for you to seek out additional coverage options to protect against the unexpected. Whether you’re dealing with an injury to a client, an employee being hurt on the job, a natural disaster or an off-site procedure issue, it pays to have the highest level of protection. Remember, basic insurance options may not adequately cover your business operations and the associated risks that come along with cosmetic medical procedures and spa treatments.
Get a Quote Online Today
It’s never too early —or too late— to start thinking about investing in a better insurance policy to protect your business and your assets. When you offer such a special set of services like those in the MediSpa business, it pays to go the extra mile with your insurance policy. From protecting your business against liability claims to preparing for the threat of natural disasters and giving your employees an extra level of protection with workers’ compensation coverage —you can find a policy that fits all your needs with your independent agents at Marine Agency Insurance.
Knowing you are always protected against the unexpected helps you to better focus your energy on what really matters —helping each one of your clients look and feel their best. By offering such a unique and special set of services, you and your staff have the ability to change lives for the better. So why waste your time worrying about your insurance coverage?
With the help of our knowledgeable insurance agents, you can review your policy, make changes and ask questions about your coverage whenever you need clarification. Marine Agency Insurance has been a leader in Laser and MediSpa Insurance since 1999. We have the experience needed to help you find the right insurance policy that meets the special needs of your business needs and your budget. If you’re in need of a new or updated MediSpa Insurance policy, be sure to visit our experienced and knowledgeable team of agents online today to get a quote in just minutes!
