Medical Spas have been a major success! From their '80s roots, they now generate an astonishing $12 billion annually. Figures released by the American Med Spa Association reveal that these businesses are seeing income growth at 9% each year - bringing them up to average annual incomes of nearly 1.5 million dollars per spa!

Nonetheless, medical spas face huger risks than the average beauty salon or spa. Because of their medical services, often performed by doctors and other licensed healthcare professionals, they must have comprehensive liability insurance policies to protect their business from legal issues.

Who Needs Insurance for Medical Spas?

Owners/Operators of Medical Spas
Licensed Healthcare Professionals such as Doctors, Nurses, and Aestheticians who work in Medical Spas
Contractors working in Medical Spas
Aestheticians who offer medical services
Medical Equipment Suppliers
Cosmetologists
Medical Spa Vendors
Facilities that Host Events and Workshops for Medical Spas
Consulting Firms for Medical Spas
Online Retailers of Medical Spa Products

What Does Insurance for Medical Spas Cover in New Mexico?

The insurance needs of each medical spa will be unique. However, there are some common types of coverage that most medical spas will require:

Professional Liability Insurance
General Liability Insurance
Product Liability Insurance
Business Interruption Insurance
Property Damage Coverage
Workers’ Compensation Insurance
Employment Practices Liability Insurance (EPLI)
Cybersecurity Coverage

Ultimately, medical spas insurance should cover all the risks associated with providing healthcare services. It should also cover any other potential risks that may arise from the operation of a medical spa.

Professional Liability Insurance for New Mexico Medical Spas

New Mexico Professional liability insurance is one of the most important medical spas insurance types. It covers the legal costs associated with malpractice, negligence, and other errors that could lead to a lawsuit.

Some of the specific coverages provided by professional liability insurance are:

Bodily injury and property damage
Errors, omissions, and negligence
Libel, slander, and defamation of character
Breach of contract
Violation of patient privacy rights
Advertising injuries
Punitive damages
Breach of fiduciary duties
Legal defense costs for covered claims
Loss of data or documents

A key benefit of professional liability insurance is that it covers legal defense costs, even if the allegations are unfounded. This can save medical spas from having to pay expensive legal fees in the event of a lawsuit.

General Liability Insurance

General liability insurance provides protection from claims made against the medical spa due to bodily injury, property damage, and personal or advertising injuries. It covers legal costs associated with such claims and any damages that may be awarded to the claimant.

For medical spas, this type of insurance is especially important because it covers any accidental injuries that may occur as a result of the treatments provided. A key difference between professional liability insurance and general liability insurance is that the former only covers errors or negligence committed by healthcare professionals, while the latter covers any type of injury caused by the medical spa’s operations.

Product Liability Insurance

The definition of product liability insurance is, “A form of insurance that protects the seller or manufacturer of a product from claims made by customers who may have been injured or suffered loss as a result of using the product.”

This type of insurance is important for medical spas because it covers any losses or injuries caused by products used in treatments. This includes skincare and cosmetic products, medical devices, and other related items. By covering the costs associated with product liability claims, this type of insurance can help protect medical spas from financial losses.

Not all medical spas will need this coverage, but it is especially important for those who offer more advanced treatments that involve the use of home-use or professional-grade products.

Commercial Property Insurance

Like any other business that owns a physical location, medical spas need to protect their property from damage or destruction due to fire, theft, and other perils. New Mexico Commercial Property Insurance provides coverage for this type of loss, including any damage to the building or its contents.

Commonly covered items include furniture, fixtures, inventory, and equipment. This type of insurance also covers business interruption losses, which can help medical spas keep their doors open in the event of a covered loss.

Workers’ Compensation Insurance

Workers’ Compensation insurance is a type of insurance that provides medical and wage replacement benefits to employees who are injured or become ill due to their work. The law requires that employers carry worker's compensation insurance, and medical spas are no exception.

This coverage not only helps protect employees from the financial burden of an injury, but it also provides medical spas with protection from lawsuits related to a work-related injury or illness.

Commercial Auto Insurance

Commercial auto insurance is essential if your medical spa owns a vehicle or employs drivers. The legal requirements for auto coverage vary by state, but this type of insurance typically covers bodily injury and property damage caused by accident. It also covers any liability for injuries or damages caused by a medical spa employee while driving for business purposes.

Commercial Umbrella Insurance

Umbrella insurance is an additional layer of coverage that provides protection beyond the limits of other types of insurance. For medical spas, this type of coverage can provide additional financial protection beyond what is provided by their other policies.

An umbrella policy's coverage and limits are determined individually, so it is important to discuss your needs with an insurance professional to ensure that you are adequately covered.

Medical Spa Insurance Cost

The cost of medical spa insurance will vary depending on the coverage limits, the type of services provided, and the location of the business. Generally, the cost of insurance for medical spas is higher than that of other types of businesses due to the unique risks associated with providing aesthetic treatments.

Other factors that impact the cost of medical spa insurance include the size and number of employees, the value of equipment, whether or not vehicles are used for business purposes, and the claims history of your business.

Tips for Lowering Your Medical Spa Insurance Cost

Shop around and compare quotes from multiple insurance companies.
Increase your deductibles to make your premiums more affordable.
Bundle multiple policies to get discounts on your coverage.
Ask about discounts for safety features or equipment.
Train employees on safety and proper use of equipment to reduce the risk of claims.
Enforce a zero-tolerance policy when it comes to drug and alcohol use on the job.
Protect your business with comprehensive liability coverage.

Other than following these tips, practicing good risk management is the best way to keep your medical spa insurance costs low. This involves taking all necessary steps to protect your business, such as regularly updating safety protocols and maintaining a clean working environment. Taking these precautions will help to reduce the risk of an insurance claim, which can help lower your premiums.

Why Work with a Medical Spa Insurance Agent?

Medical spa insurance is a complex and ever-evolving form of coverage. An experienced insurance agent can:

Help you identify the coverage needs of your business.
Explain available policy options and the differences between them.
Provide advice on how to lower your premiums.
Assist you in the event of a claim.
Help you stay up to date on changes in insurance laws and regulations.
Connect you with other resources and services relevant to the medical spa industry.
Find the best rates and coverage options from multiple insurance companies.

With a knowledgeable medical spa insurance agent on your side, you can feel confident that your business is adequately protected.

The Claims Process of Medical Spa Insurance in New Mexico

If your medical spa experiences a claim, it is important to follow the claims process properly in order to receive coverage. The process typically begins with filing a claim with the insurance company and includes an investigation into the incident. You may be asked to provide documentation to support the claim during this time.

Once the investigation has been completed, the insurance company will then determine if and how much coverage you are entitled to. Depending on the nature of the claim, you may need to provide additional information or documentation before a decision is made.

It is important to note that the claims process can be lengthy, so it is essential to maintain communication with your insurance company throughout the process.

Compare New Mexico Medical Spa Insurance Quotes

Here at Elemental Risk Management, we understand the importance of protecting your business with the right insurance coverage. Our team of experienced agents can help you find the best rates and coverage options from multiple insurance companies. Contact us today to get started on your free, no-obligation quote comparison.

Request a Quote

Speak with a Medical Spa Insurance specialist today!

Get started today!

If you are preparing to start a valet service at your business, be sure to consider safety issues, legal requirements, and additional coverage options so that you can find the best possible coverage for your budget and needs.

Prefer to speak with an agent now?