The Vital Role Malpractice Insurance Plays in Protecting Your Medical Spa Business

Last Updated on August 3, 2023

Worried about shielding your medi spa business from potential risks and liabilities? Malpractice insurance coverage is essential to safeguarding your enterprise, employees, and clients.

The rising popularity of medi spas, facilities that blend traditional spa treatments with medical procedures, has ushered in a new era of beauty routines. These facilities combine traditional spa treatments like facials and massages with medical procedures such as laser hair removal and Botox injections.

However, these procedures, while less invasive, can also potentially lead to malpractice issues if not executed properly. As a medi spa owner, it’s crucial to have the right insurance in place to protect your business, employees, and clients.

The Growing Importance of Insurance in the Medi Spa Boom

Med spa treatments still come with their unique set of risks which owners (such as yourself, perhaps) are not unfamiliar with. This is why it is important to have the right insurance coverage place not just to protect your business but also your employees and clients. In particular, insurance against malpractice is crucial to safeguard your business against potential claims.

In the following, we outline the different types of coverage you should consider for your medical spa, how much it cost, and where you could get the right coverage for your enterprise.

Securing Your Business Against Hidden Hazards

While accidents can occur in any business, the blend of medical procedures and spa treatments makes insurance particularly crucial for med spas. While the removal of hair or certain injectables may seem routine, there is always a chance for injury or complication.

In addition, even if your employees are properly trained and certified, human error can still occur which could result in liabilities. Malpractice claims, in particular, can arise from these human errors and can be financially devastating. The right insurance policy can protect both you and your clients in the event of such occurrences. Insurance covering malpractice can be a lifeline in such situations.

Medical malpractice claims, for instance, can be extremely costly without proper coverage in place. Loss or damage to expensive equipment used in your medical spa could also lead to financial loss without a policy to pay for repairs or replacements. Not to mention, malpractice claims related to equipment misuse can also be mitigated with the right insurance.

The Tangible Benefits of Medical Spa Insurance

Insurance not only provides a safety net for your business, but also demonstrates to your clients that their safety is your priority. It fosters client trust and distinguishes your facility from competitors who may undervalue such measures. For instance, demonstrating that you have malpractice insurance shows clients you are prepared for any eventuality.

It gives peace of mind to potential clients who may be hesitant about trying out new beauty procedures. Knowing that they are covered in case something goes wrong can help reassure them to try out your medical spa services. This includes being covered for any potential malpractice issues.

Overall, having adequate insurance coverage maintains a professional image for your company while also giving you security as you render your services.

Every Medi Spa Owner Needs to Understand This About Insurance

The appropriate coverage varies and depends on the specific practices and procedures offered at your medi spa. However, there are a few common types of coverage that you should consider.

General liability insurance. This is the most basic coverage that many, if not all, owners in the industry first consider. It protects your medical spa in the event of bodily injury or property damage claims arising from accidents that occur on your premises.

For instance, working with light and giving laser treatments can lead to nerve damage and burns, as do other practices such as cryotherapy, microdermabrasion, and peels. Should these occur, your general liability policy will help you pay for fees paid to the doctor and settlements should a lawsuit be filed by your customer. Any malpractice-related costs can also be covered by your insurance policy.

General liability insurance also covers damage to a third party’s property and advertising injury. If your advertisements unintentionally slander a person or are sued for copyright infringement, you will have medical spa insurance to cover the resulting expenses.

Workers’ compensation insurance. This type of coverage is required in most states for any business with employees, and it protects workers in case they sustain injuries while on the job. Medical expenses, disability benefits, and lost wages are covered under workers’ comp insurance.

Professional liability insurance. Also known as E & O, this coverage protects your medical spa in the event of a mistake made by one of your employees. This can also cover any malpractice claims, which can arise in the course of medical procedures. This can include miscommunication or failure to deliver promised results from service and can cover costs such as damages and legal fees.

Medical malpractice insurance. Because you employ estheticians or other medical professionals, it may be worth considering as a specialized type of professional liability coverage. This is particularly true if you’re concerned about potential malpractice claims. This covers negligence or mistakes made during performing medical procedures such as injectables and tattoo removals.

Product liability insurance. This type of coverage protects your business in cases where a product used at your medispa causes injury or harm to a client. This can include skincare products such as lotions and creams.

Business property insurance. Should your med spa suffer from the forces of nature or theft, this type of coverage will help cover damages to your valuable property. Likewise, insurance can protect you against the financial repercussions of professional errors. This can include equipment including micro-needling devices and lasers, furniture including facial beds and massage tables, or your building itself.

These are just a few examples of types of medical spa industry solutions that you may want to consider. It is still important to consult with an agent to assess your specific needs and risks, as well as any state or industry requirements for coverage. By protecting your business with insurance, you can ensure its success in the long term.

Breaking Down the Costs

The cost of medispa insurance coverage will vary depending on the types and amounts of coverage you choose, as well as factors such as your location, the list of procedures and services you offer and how risky they are, and, of course, the healthcare professionals you employ. It may also be affected by your company size, your history, and records such as your claims which give your insurer an idea of what your annual premium would be.

In short, riskier procedures and services, higher coverage amounts, and a bigger business will lead to higher costs. Generally, owners may expect to pay about $500 annually for a policy suited to this specific and high-risk industry. In the end, it is worth keeping in mind that these costs can be seen as an investment and ensuring its success in the long run. This is especially true when considering the high costs that can be associated with malpractice claims.

It is always important to consult with an agent to learn more about your risks and get quotes for the coverage that is right for your med spa. They will also be able to help guide you in terms of any state or industry requirements. This includes requirements for malpractice insurance, which vary from state to state.

Leading Medi Spa Insurance Providers

Several leading insurance company products for med spas are Hiscox, NEXT, and biBERK. Again, it is important to consult with an insurance agent to assess your specific needs and get quotes from multiple providers to find the best coverage for your business.

Here, we look at their coverage offerings and why they would be good for medi spas.

Hiscox

Hiscox, established in 1901, is an experienced company catering specifically to small businesses. Hiscox is known for its comprehensive coverage options, including malpractice insurance, making it a reliable choice for med spas. They customize policies based on business type and size.. They are also among the expert insurers offering medical malpractice insurance for health professionals, which is why they would be a good choice for med spas that focus more on non-surgical medical care.

They offer business insurance for medspa owners and liability insurance for beauty professionals and are reachable by both offline and online means with offices across the United States. If you run a bigger clinic/spa, you would want to go with Hiscox.

Their general liability policy starts at $30 monthly or $350 a year.

NEXT

NEXT is a modern insurance broker that employs technology to serve its customers through giving fast, free, and online quotes, and the ability to manage their policies from a mobile app.

NEXT offers a range of recommended policies for spa owners, including general liability, professional liability, commercial auto, workers’ compensation, and commercial property. The extent of coverage can be tailored from basic to pro-plus, depending on your specific needs. They are also among the cheapest options with general liability starting at $11 monthly and more savings available when you bundle coverages.

Take into account, however, that NEXT does not offer malpractice insurance for your procedures and services. This is an important consideration, as malpractice insurance can provide crucial protection for your business.

biBERK

biBERK, a company under the umbrella of Berkshire Hathaway Insurance Group, offers a range of policies including medical malpractice insurance. They focus on simplicity and state compliance for small businesses and emphasize that malpractice insurance is not only for surgeons and doctors, but even for mental health counselors, pharmaceutical salespeople, and, of course, medical spa owners.

biBERK is reachable by both online and offline communication channels and is a direct provider that could give you savings on your premiums.

Final Takeaway

Medical spa insurance is critical to the success and growth of your business. By understanding the different types of coverage available and how they protect your business, you can make informed decisions about the best insurance plan for your med spa. This includes understanding the importance of malpractice insurance in protecting your business against potential claims.