Insurance for health and wellness business
Health and wellness businesses help us all to improve our well-being in one way or another. From yoga studios to psychology clinics to massage therapy, it’s likely that most Canadians have utilized a service that has helped them improve their physical or mental health.
While many of these businesses are gentle by nature, unfortunately, it doesn’t make them risk-free. In this industry, many claims stem from allegations of negligence or misconduct. Clients rely on the professional advice that is provided – should you make an error, you could be held liable, and this can be a costly mistake to make.
Health and wellness insurance is crucial to keep your business safe from expensive professional liability claims. It can also cover you for other incidents – learn more about getting insurance for individual practitioners and businesses.
What is health and wellness business insurance?
Health and wellness insurance protects wellness professionals from alleged negligence or malpractice lawsuits. Insurance also provides coverage for common risks such as a general liability claim or property damage to your location.
What does it cover?
Health and wellness insurance covers expenses that occur when something unexpected or accidental happens, such as a third-party injury on your premises or damage to your business assets. Here are the coverages that contribute to your policy:
- Commercial General Liability (CGL) Insurance: CGL provides financial coverage against common liability risks that can happen in any business setting, such as a slip-and-fall accident. For example, say your yoga studio was recently refurbished, and the new flooring was more slippery than the last. If a client was to fall over, you could be liable for a potential injury. In this case, CGL insurance could cover medical costs.
- Professional Liability Insurance: This policy is very important for any wellness professional that offers professional advice that’s relied on by a client. Also known as malpractice insurance, it provides protection against claims of negligence, errors, omissions, and failure to deliver a service as promised. Say you’re a dietitian helping a client lose weight – after strictly following your plan for months, they’ve gained weight. In this case, your insurance may cover the legal costs and settlement fees.
- Commercial Property Insurance: This policy protects your location (whether you rent or own) and your business-related equipment against risks such as fire, theft, and vandalism. Suppose you rent an office for your chiropractic business, and your clinic is broken into overnight. This policy could provide financial protection to replace or repair any property that was damaged or stolen during the break-in.
- Cyber Liability Insurance: This policy covers the costs of losses that involve technology, such as the hacking of your client data. If you host virtual wellness services or you store the private health information of clients, this is particularly important coverage to have. Say client financial data are suddenly missing from your computer due to a cyber breach, this policy could cover the costs of notifying clients and credit monitoring.
How much does it cost?
The cost depends on many factors, however, for a small- to medium-sized, low-risk health and wellness business, you can anticipate spending $450 annually on a basic CGL policy with a $2M limit.
When you fill out an online application with Zensurance, you’ll be asked some simple questions about your business to better understand your needs. To give you an idea, here are some considerations that help to determine your quote:
- Years of experience
- Services offered
- Annual and projected gross revenue
- Number of employees
- Previous insurance claims
- Training and education
Who needs it?
If you offer health and wellness services, it is important to protect yourself with a health and wellness business insurance package. We’ve listed out some of the professional services we already insure under this policy. Some of our clients include:
Common claims scenarios
Frequently asked questions