When your business goal is to create a peaceful environment for clients to escape from reality, the last thing you want is a liability issue to break the illusion. These events cause emotional, financial, and reputational stress; three things we don’t typically associate with a tranquil spa environment.
We know preventing these types of scenarios is a top priority. We also know the secret to avoiding these types of stress-inducing events is a robust risk-management strategy is spa liability insurance.
What is Spa Liability Insurance?
Spa Liability Insurance is a policy package that protects spa owners from claims related to their professional activities and business operations, such as treatment-related injuries or failure to deliver a service as promised.
A comprehensive insurance policy for spa owners begins with four policies:
- Commercial General Liability Insurance: Also known as CGL, Commercial General Liability Insurance protects spa owners against claims alleging property damage or bodily injury as a result of your professional operations. This coverage may include accidentally damaging a client’s property during a home visit, or a client injures themselves after slipping on spilled massage oil.
- Medical Malpractice Insurance is a type of professional liability insurance that protects against claims alleging bodily injury, negligence, or property damage resulting from your professional activities. Medical malpractice insurance also protects your business if it’s named in a lawsuit against one of the independent practitioners working for you.
- Business Interruption Insurance covers net income lost due to interrupted business operations. Say a pipe bursts and floods the first floor of your spa, causing you to close down while repairs are made. While commercial property would cover the costs of repairs, business interruption insurance would cover income lost during the time it takes to get the spa back in working condition.
- Product Liability Insurance: Product Insurance protects against claims related to the products you use or sell at your spa. This applies to products you source or labels yourself. Think allergic reactions, chemical burns – it easily could happen, and if it does, it’s better to be safe than sorry.
What Else Does A Spa Liability Insurance Policy Include?
Search ‘spa’ on Google, and you will see a list of different types of spas, including med-spas, ayurvedic resorts, and destination spas. The spa industry and services they provide are varied. So are the insurance policies designed to protect them.
We know your spa is unique. In addition to CGL, Business Interruption Insurance, Medical Malpractice Insurance and Product Liability Insurance, you can tailor your policy to make sure your spa gets the adequate protection it needs. Speak with your broker about customizing your policy to suit your specific business requirements:
- Commercial Property Insurance provides coverage for loss or damage to the physical assets of your business, such as your spa property, as well as tools, equipment, technology, and furniture. Say a pipe bursts and floods the first floor of your spa, causing you to close down while repairs are made. Commercial property insurance may cover the cost to repair the floors and replace the furniture.
- Equipment Breakdown Insurance covers losses resulting from the sudden and accidental breakdown of equipment required to run your business. For example, your steam machine breaks down and prevents you from offering your signature (and most popular) facial. Equipment breakdown insurance may cover the cost of replacing the machine.
- Cyber Liability Insurance covers damages associated with theft, corruption, and disruption of electronic data. It is a must-have if you keep records of your client’s health history or financial information.
Together, these coverages create a comprehensive policy package that protects your business from all angles. Speak with your broker to identify other ways to protect your business.
Does Spa Liability Insurance Cover Me If I…
There are many components of your business that make it unique and you may be wondering if your liability insurance will cover them. Here are a few common features that spa owners should bring up with their broker to ensure they are adequately covered:
- Serve Alcoholic Beverages: If you offer your guests alcohol, consider adding Liquor Liability coverage to your spa insurance policy package. Liquor liability insurance protects against alcohol-related claims. For example, a client has a few too many glasses of complimentary champagne while waiting for their service to begin. On their way to the treatment room, they stumble and injure themselves. As the fall is alcohol-related, it would not be covered by CGL. Instead, it would be considered a liquor liability issue.
- Provide Mobile Spa Services: Your Spa Liability Insurance will follow you wherever you go. If you offer mobile spa services, you will be covered wherever you go, so long as you have adequate coverage. The same is true if mobile services are not your primary offering, but still something you offer. Your broker can help you understand the limitations and restrictions of your insurance policy.
- Employ Independent Practitioners: Your spa liability insurance will cover full-time employees of your business. While you can add independent practitioners to your policy, your premium applies to all employees, so it decreases your coverage. If you have a massage therapist who rents a room three days a week, it is wise to encourage them to have insurance coverage of their own.
How Much Does Spa Liability Insurance Cost?
Much like the industry and types of coverage, the cost of liability insurance for spa owners also varies and depends on several factors. When determining the value of your insurance premium, the location of your business, services offered, and annual revenue are taken into consideration.
We’ve partnered with over fifty of Canada’s largest insurance carriers to offer you the most exclusive rates on spa liability insurance.
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