Spa Insurance

Spa Professional Liability Insurance

Professional liability, also known as malpractice insurance or errors and omissions, is a must for spa owners. It helps cover any legal costs that may result from your or your employees’ work performance, even if you’re technically not at fault. 

Professional liability covers: 

• Actual negligence
• Alleged negligence
• Legal defense fees
• Legal judgment fees

Let’s say one of your employees uses a new product on a client that results in a severe allergic reaction and the client sues you. Without professional liability, you would need to pay out of pocket for your client’s medical bills, loss of wages, and even emotional distress, which could easily be thousands of dollars.

Professional liability is a good thing to have, especially if you provide spa services like: 

• Aromatherapy
• Body wraps
• Facials and peels
• Massages
• Eyebrow and eyelash treatments

Professional liability insurance can cost a spa owner as little as $37 a month. That’s about $444 a year.

Liability insurance for spas

A general liability insurance policy is also a must when you own your own business. GL financially protects your personal care business from the potentially high cost of third-party legal claims if a client were to sue you. If you are considering leasing a commercial building, general liability is often required. 

General liability covers:

• Third-party bodily injury
• Property damage
• Medical payments
• Legal fees
• Legal judgments

If one of your clients slips and falls on a wet floor, causing them an injury that requires medical attention, general liability will help pay for your client’s medical expenses. If your client decides to sue you, general liability will help pay for your legal fees.

General liability insurance can average around $33 a month for spa owners. That’s about $400 a year.

Spa owner workers’ comp

A workers’ comp insurance policy is required by most states for day spa owners who have one or more employees. It protects you by helping pay for expenses related to an employee’s injury or illness.

WC covers: 

• Medical expenses due to a workplace illness or injury
• Lost wages
• Legal fees

Let’s say one of your employees slips and falls, injuring themselves. Your workers’ comp policy will help cover the expenses related to this workplace accident.

Learn about the cost of workers’ comp insurance.

Property insurance for spas 

You need business property insurance if you own or rent a physical space when providing your spa services. It helps protect your business stuff, including your inventory, equipment, and the building itself. 

It covers: 

• Damaged equipment
• Damaged inventory
• Damaged building
• Lost income
• Lost operating expenses

Here’s an example: A water pipe bursts, causing extensive damage to your property. A property insurance policy will either help to repair or replace your damaged property, as well as help cover your lost business income while you work on repairing your damaged property. 

Business property insurance can cost a spa as little as $43 a month. That’s only about $516 a year for spa property insurance.

Business Owners Policy

A BOP insurance policy is a packaged policy, combining general liability and property insurance. With a BOP, you get more coverage, and at a lesser price than purchasing each policy separately. 

A BOP can cover: 

• Third-party injuries
• Third-party property damage
• Business property damage

Learn more about the cost of BOP insurance.

Additional Insurance

You will want to consider business auto insurance if you have a business-owned vehicle. 

Cyber liability insurance is quickly becoming necessary to protect small businesses from cyber-attacks. Cyber insurance will give you the guidance, direction, and financial help you need to get through a cyber-attack, making it a must for many of today’s small business owners.

Spa insurance cost

How much does spa insurance cost? It depends on the details of your spa business. For example – Where are you located? How many employees do you have? What kind of vehicle do you use for your business? How much money do you make? How much is your business property and/or equipment worth?  What types of coverage do you need?

Overall, the cost for spa insurance is worth it in the event of an accident. It surely beats paying out of pocket!