The Importance of Spa Insurance

Hairstylists would benefit best from professional liability insurance. This type of insurance covers claims related to services provided. 

For example, say a customer gets a haircut and it doesn't look like the picture they provided, so they decided to sue. Or their chosen hair colour is completely off or worse yet, damages the hair.

Estheticians benefit from professional liability insurance coverage since they are dealing with equipment and chemicals.

Insurance would protect them in the event a customer's skin is too sensitive and burns. Or a tool slips from their hand and leaves a third-degree burn or cut on someone. 

Salon owners must have several types of insurance. If the facility employs workers, it must have workers' compensation insurance in case of injury. 

A spa owner should also ensure each employee has professional liability insurance coverage. Owners should consider all liabilities, including natural disasters, fires, lawsuits, and injuries. 

There are insurance options designed specifically for eyelash technicians. While eyelash services are generally safe, there are a few common risks associated with this type of service. 

• Allergic reactions
• Falls and slips
• Negligence in product usage

A client can decide to sue someone providing a service at any time, for any reason. It's important to have the proper insurance coverage in place. 

A medical spa offers different types of procedures than a wellness spa. Medical spas are also run by a doctor. 

Patients can get luxurious treatments but also specialized treatments. These services are typically procedures often done in dermatology or cosmetic surgery clinics.

Medical spa owners will need business, medical, and professional liability insurance policies to cover all their bases. 

Nail technicians will need professional liability coverage. They are dealing with nails, cuticles, and hands and feet. Any number of issues could arise.

If a customer loses a nail because of the treatment you gave them, you want to make sure you're protected legally.

Makeup artists deal with people's skin and appearances. There are many chances for allergic reactions or bad outcomes. It's best for artists to be protected against liabilities. 

Much like a hairstylist, barbers are dealing with sharp tools that could cut or nick someone's skin. It's better to be safe than sorry with this service. Liability insurance will help barbers stay safe from claims. 

This type of coverage is for overall liability that could occur in a business setting. 

General liability insurance will protect owners from lawsuits related to bodily harm and personal injury. This type of insurance will also allow property claims and claims against false advertising.

Professional liability coverage is explained above. This coverage is important for professionals providing services. This insurance coverage will handle accidents, injuries, and negligence. 

Property insurance is important in case of natural disasters or emergencies. Having this type of insurance will make sure your spa can stay in business following a loss.

Property insurance replaces the following losses: 

• Furniture
• Hairstyling stations
• Tools and equipment
• Tanning beds
• Products in inventory
• Products used to provide services
• Specialized equipment

This type of insurance is necessary for owners of facilities, whether in a medical or wellness spa.

This type of coverage combines general liability and property insurance claims into one policy. This would be a good option for spa and medical spa owners. It covers: 

• Property damage
• Customer injuries
• Product-related claims
• Advertising injury
• Commercial property
• Moveable property

Workers' compensation coverage is necessary in case of any workplace accidents, such as falls, burns, and work-related illnesses. 

When an employee is injured on the job, the business is required by law to pay for any lost wages. A solid insurance policy will cover these expenses. 

It also covers: 

• Medical fees
• Lawyer fees
• COVID-19 infections

This type of policy is a must-have for anyone with employees. 

This is an extended plan to cover situations not covered by normal policies. For example, the loss exceeds the limits on your regular policy; having an umbrella policy would help cover what isn't. 

This may or may not apply depending on the type of spa you have. 

A mobile spa would need this type of insurance. And if you use your personal vehicle to do anything work-related, this time of insurance is necessary. 

Personal policies will not cover accidents if they happen to do something related to the business. 

This type of coverage helps your business in the event of unforeseen circumstances. 

Maybe a storm caused a long lasting power outage and you are unable to provide the services you normally would on a normal day. Your business interruption insurance would cover you for these types of incidents.

This type is especially important for medical spa facilities. This will cover any situations where injuries happen due to mistreatment.

In some spas, massage therapists are on staff to deliver much-needed relaxation. 

Due to the nature of the job, sometimes sexual allegations do arise from customers. You can get a special policy to cover your business in this event. 

You can even purchase insurance policies to cover your business if you get a compliance violation. There are also policies that will cover fees related to accidental regulatory infractions. 

• What type of insurance is needed
• Where you live and local risks
• What type of services are you offering
• Budget and pricing
• Your assets
• What needs protection

There are a few different ways to save money on spa insurance. 

Bundle Your Policies

By bundling your policies you can often get discounted rates. Bundling your policies simply means you buy several policies from the same company in a bundled deal. There are a few advantages to bundling your policies: 

• Fewer accounts to manage
• You might save on deductibles
• Easier claims process
• Helps lower cancellation risks

You do need to research the companies and what they offer if you are considering bundling. Discounts are often listed on company websites. Or you can speak directly with an agent that specializes in business insurance. 

Adjust the Deductible

You also have the option of adjusting your deductible to lower your cost. The deductible is the amount you have to pay for each event.

A higher deductible will often lower your premium. 

Customize Your Policy

By customizing your plan, you only pay for what you need. This helps you to avoid costs. Why pay for workers' compensation insurance if you are the sole owner and employee? 

Decrease Business Risks

Another great way to lower the costs associated with insurance is to have systems in place to protect your business. Most insurances offer discounts for "good behaviour" so to speak. Going without claims can lower your costs over time. 

With systems and processes in place to protect your facility, your customers, and your employees, you will eventually see cost savings.