Medispas are unique businesses which have become increasingly popular in recent years. A typical Medspa combines aspects of a healthcare clinic with the spa world and offers beauty and cosmetic medical procedures.
Medispas emphasize the beauty business but they are medical practices which require business and professional liability insurance tailored to the specific services being offered. For a doctor (MD) working as a medical director or one who is performing services at a medispa, they may obtain coverage individually or be covered under the facility policy. There are several strategies to consider when structuring a MedSpa policy and coverage. For instance are the liability limits shared between the facility and physician, or are they separate ? Malpractice coverage for a physician may be limited to certain procedures and therefore cheaper than a typical MD policy. Professional liability policies for medispas are designed cover specific procedures such as Botox treatment, laser services, dermal fillers, sclerotherapy, medical and esthetic peels, and other procedures performed at the facility. They can also cover beauty industry services such as microdermabrasion, massage and facial work. Non-cosmetic procedures such as work on psoriasis and eczema can also be covered.
It is important to note that a typical Business Office Policy is not sufficient coverage for a Medispa as it does not contain the medical professional liability coverage that is needed for this type of facility and procedures performed. A typical business office policy that extends to barbers and beauticians premiums start at $500 annually, a Medispa professional medical liability policy will start at $1800 give or take.
There are different requirements and limits on medispa policies that should be noted. Some states require a Medispa facility to have a medical director who is an MD, other states do not require and MD to be on staff. A policy will specifically state which procedures are included and excluded, and some policies may include general liability coverage as well as medical professional liability. Additionally, many medispas have contracts with nurses and doctors who only come in for specific medical services. In such cases, healthcare professionals need to have their own malpractice insurance or make sure they are covered under the facilities policy. If a physician is included on a Medspa policy they will want to know how the policy limits are allocated, are they shared or do they have separate limits.
If a lawsuit is filed against a doctor who contracts with the facility, chances are the medispa will be sued as well. Odds are that the doctor’s individual malpractice insurance will not cover the medispa facility. Since medical malpractice lawyers start at $300 an hour, and jury awards can reach 7-figure sums, it is highly recommended that a facility and or physician carry their own malpractice coverage or verify the policy limits are adequate to cover all parties. In addition, medispas should carry general liability policies often called, Business Office Policies (BOP) which pay for things like slip-and-fall injuries, property damage, and employee lawsuits. Business property coverage is also recommended to cover replacement costs in cases of damage to furniture, computers, lasers, and other equipment.
If a medispa is planning to offer products such as face creams, a products liability policy might be a good idea, and cyber liability is becoming more and more of an issue. Some medical professional liability policies may some coverage for these additional risks. Understanding and managing risk at is an issue that every Medispa faces.
The purpose of this article is to provide information, rather than advice or opinion.