Insurance for spas
As a spa owner or professional working in one, you specialize in helping your customers look and feel their best through the treatments you provide. Whether it’s to help someone to relax and release stress or improve their mental and physical health, you specialize in helping your customers rejuvenate, recharge, detox, and beautify their skin. With a range of health-promoting services, spas use the healing power of touch therapy, body polishes, and water and hair treatments to help them find balance and feel amazing.
While you take pride and care in the services you provide, the possibility of an accident or error that injures one of your customers is a reality. Should that happen, and one of your customers decides to sue you for damages, the reputational damage you may suffer and the cost could spell the end of your business without a spa insurance policy.
What is spa insurance?
Spa insurance is a customized policy for business owners and spa professionals to protect them from the risks associated with the services they provide to their customers. As with any business serving clients, there is always the potential for an accident or mistake being made. For spas and the types of treatments they provide, those risks are doubled.
What does it cover?
Spa insurance includes several coverages that are combined to provide a complete package. Typically, spa insurance includes the following coverages:
- Professional Liability Insurance: Also known as errors and omissions (E&O) insurance or malpractice insurance, professional liability coverage safeguards you from allegations of misconduct, negligence, or failure to deliver a service as advertised. If one of your customers claims your professional advice or service to them was wrong and they suffer a loss or damage, they could sue you. Professional liability is designed to cover your legal fees and any monetary judgments against you in court.
- Commercial General Liability (CGL) Insurance: Commonly referred to as “slip-and-fall insurance,” CGL is basic coverage that protects you against day-to-day risks while running your business. CGL can protect spa owners against claims of third-party bodily injury or property damage that occur at your business location. CGL is designed to cover an injured patron’s medical fees. If they sue you for damages, it also covers your legal expenses and any settlement ordered by the court. Furthermore, CGL also includes product liability insurance, which protects against claims alleging that a product you used during a treatment or sold to a customer resulted in them suffering bodily injury or property damage. Damages covered by product liability are often the result of a design, manufacturing, or marketing defect, such as an incorrect label or a lack of safety warnings.
- Commercial Property Insurance: Commercial property insurance protects your spa from insured perils that occur beyond your control, such as a fire or theft. You can also add business interruption insurance, which provides reimbursement for net income lost following an insured event. For instance, if a fire ignites in your spa overnight and causes significant damage, your spa will remain closed until the building is repaired. Business interruption coverage will provide you with financial support for the income you lose while the spa is under repair. However, business interruption coverage will not cover income lost due to a pandemic, infectious disease, or government-mandated public health closure.
Who needs spa insurance?
Whether it’s a day spa, mobile spa, massage spa, aromatherapy spa, medical spa, or health spa, any type of spa or professional working in one should be insured, including:
How much does it cost?
Several factors come into play when an insurance company determines what your annual premium is for a spa insurance policy. A typical policy costs around $330 per year. The factors insurers consider include:
- The services you provide
- Your years of experience as a business owner
- The training and certifications you and your employees have
- Any previous claims you may have made
- Your annual and projected gross revenue
Common claims scenarios
Frequently asked questions