You help clients look and feel their best, however the nature of physically seeing patients and giving advice and treatment raises many risks and exposures that can result in costly lawsuits. To safeguard your business/career and provide the peace of mind you deserve in your practice, medical spa insurance is strongly recommended. Learn everything you need to know about it here!
Scenarios and Examples – Why You Need Medical Spa Insurance
You have patients coming to your clinic
Say a customer slips and falls after you finish mopping. They sprain their ankle and require two surgeries and sue you for medical costs, lost wages, pain & suffering. Your commercial general liability will help provide funds to cover immediate medical fees in order to avoid a law suit. However, if despite best efforts a suit is laid anyway, then the insurer will defend and pay an award, if applicable.
You provide treatment or advice to patients
While providing laser hair removal service, a customer complains the areas treated were swollen and felt very hot – or even burned. Over the next days, welts and scars appear. As a result they sue for damages claiming the service provider burned them. Sometimes the practitioners have their own insurance and sometimes the clinic provides it for everyone. However, the Clinic should have Professional Liability so it can defend and pay on behalf of the clinic.
An electrical fire breaks out
A small electrical fire breaks out, which activates the sprinklers – causing damage to not only furniture/fixtures, but also damaging expensive technology and equipment. Property insurance then provides funds to repair or replace contents, so you can get back to serving clients – and Business Interruption will help replace your daily revenue while the client is closed for repairs.
A Cyber attack is successful…
You come in to the clinic in the morning to log in and find that all of the computers / server are locked down by Ransomware.
Or, you get a call from a vender asking why you haven’t paid your bill for 3 months. Accounting confirms the payment was made to a new account you received an email about. Investigation reveals you were subject to a cyber crime loss where you paid the wrong party – and now still owe your vendor as well…
What Does Medical Spa Insurance Cover?
Medical Spa Insurance is a bit of a generic term, that can be used to describe all types of insurance needed for all types of Medical Spa and Clinics. Sometimes all in one policy, sometimes each on individual policies – if that is what offers the best price / coverage combination.
Working with you, one of our brokers will help identify which coverages compliment your clinic based on risk/operations and will obtain quotes from multiple insurers to get you the best comprehensive coverage for your money.
The following list are examples of common coverages needed by Medical Spas of all sizes.
Professional Liability
Practitioners hold a certain duty of care that can easily be targeted if something goes wrong. Malpractice liability, also known as professional liability, protects you and your employees from claims based on potential mistakes, negligence, misrepresentation or omissions (leaving out important information or not providing services). For example, if you recommend a product or treatment that promises to help and it doesn’t, or causes injury, then they can come back to you with a lawsuit.
Commercial General Liability
Commercial General Liability (CGL) safeguards your business from the day-to-day risks of having patients come into your clinic. In additional to covering if a third party accidentally slips in the parking lot and injures themselves, this coverage covers potential and medical fees. If property damage occurs to a third party, example if a fire damages your landlord’s space – or the fire damages the neighboring offices, CGL also covers legal expenses and court ordered awards. Even if you don’t own your building, CGL is essential to protect yourself in a liability suit.
Property Insurance
Accidents both inside and outside your clinic are real risks that can not only be costly but can also result in your clinic having to close. Fires, floods, and storms can create significant damage. If something like this occurs, property insurance provides funds to repair/replace the contents for example furniture, medical equipment, machines, patient documents, leasehold improvements, etc so you can be get back to running your clinic. Also Business Interruption can help pay for additional expenses incurred due to your loss and/or your loss of client revenue during the closure.
Cyber Insurance / Cyber Crime
The Healthcare industry continues to be one of the hardest hit industries for Cyber Attacks / Cyber crime. Whenever you are holding private medical information of clients, payment information and other info your business is exposed. After a Cyber attack you would be required to meet the Privacy Act requirements, pay other investigate costs like for IT Specialists to help you determine how the loss occurred and then get you back up and running. From there you may also face liability from your clients regarding their private information. Cyber Insurance helps you protect your business from tens of thousands of dollars in losses and legal liabilities in these areas.
Legal Expense Insurance
Sometimes there are legal issues that crop up for businesses that fall outside the scope of traditional insurance and yet, you may still have to pay a lawyer to help you resolve the issue. For example, dealing with CRA Tax Audits, contractual issues with vendors, customers not paying their bills, Occupational Health and Safety Investigations, Employment Disputes. For these types of instances, we can look to place a small Legal Expense insurance policy to transfer the risk of up to $200,000 per claim in legal expenses / business exposures to the insurer.
Another great benefit of legal expense insurance is that there is a free Legal Advice Help line available, where you can call in for day to day legal advice from contracts to an employee/employer dispute.
What are the Benefits of Medi-Spa Insurance?
- Financial Protection – A small cost for a big benefit.
- Peace of Mind
- Clients/customers Trust You Better
- At Collis Insurance, you get the best value.
Who Needs Medical Spa Insurance?
-
Medical Spas (MediSpas)
-
Laser Treatment Providers and Facilities
-
Skin Care Treatment Professionals
-
Medical Aesthetic Clinics and Spas
See for yourself what clients have to say about us
FAQ
FAQ
Have a question? Don’t hesitate to reach out!
(403) 265-5475
Or send us a chat below!
Do medical spas need insurance?
Certain professionals do require professional liability / malpractice liability by law in Alberta, like doctors and LPN’s. Other’s may not be required, but should have – like estheticians – and would be covered with the Clinic’s professional liability.
Clinic insurance in general is not required by law but is highly recommended to safeguard you against common risks and the possibility of costly lawsuits, additionally you will have other contractual requirements requiring proof of insurance (eg. Landlords, banks, loans/leases on specialty equipment, etc.)
How much does medical spa insurance cost?
The cost is of the various policies are dependent on a variety of factors, some of which include: the size of your business, specific operations / services offered, type/size of premises, amount of property / tenant’s improvements coverage, # of employees, annual revenue and the different types and limits of insurances needed.
Speak with one of our brokers to find out how to customize coverage specific to your firm’s needs.
How do I make sure I’m getting the right insurance coverage for my profession?
Our brokers take time to understand your true professional/business needs, risks, and more to provide a tailored policy and additional protection areas that fit your business insurance needs/budget.
Have a question?
Your trusted Collis Insurance Business Insurance Broker can help and also offer additional coverage for consideration, like Cyber & Privacy Liability, Legal Expense Insurance, and other relevant coverage.