Can anyone advise regarding medical liability insurance and carriers for MD's opening a medical spa? Also, does the medical spa insurance also cover Medical directors/physicians performing procedures are is this purchased separately from another carrier? What are the best limits of coverage and annual premiums?

It depends on how much ownership the MD has in the medical spa. Depending on the malpractive carrier, 51% ownership is the normal realm of having an admitted malpractice carrier cover your individual, corporate and medical director exposure. If there is less ownership by a physician, you will have to go to excess lines markets for your coverage. They can write medical spa with or without the medical director malpractice, usually medspa insurance covers for administrative tasks. Medical spa insurance covers for all employees at that location doing procedures. But the procedures that can be performed are regulated by the respective state boards. Depending on the state, some do not have set guidelines and thus each respective professions must go to their state board.

The best limits are usually set by your state, most physicians hold a $1million occurrence/$3million aggregate and the medical spa hold the same limits. But again this depends on the state and also if there is a state cap in place. The physician may be able to be covered under a state cap if available, but medical spas in most states are not covered under the same cap. Usually excess markets since they are non-admitted are not recognized as the same as admitted market by state caps. But most medspa carriers due to thier risk class are non-admitted, but this depends on ownership again.

Usually premiums are based on annual sales or total number of procedures performed. So it if you are starting out, do not use your best case scenario as a basis, you can make quarterly or semi-annual adjustments as needed. Otherwise you may be overpaying for your first year in business, when you will incur your most costs. Premiums can range from $10K-$50K. But again it is respective to your state and procedures performed.

Hope this helps!

A new med spa I am working with in Minnesota is completing an application for PROFESSIONAL LIABILITY INSURANCE for its nurses. The Marine Agency offers several programs to cover physician extenders who are performing certain laser procedures under the supervision of a physician, etc.. Once again the insurance company is asking for details on the laser training programs and certification the nurses have received. The Minnesota Nursing Board similarly requires a minimum of 30 hours of training at a "colllege or university". I have searched the Internet for any acccredited institution of higher learning offering such a course and was shocked to find only one "creative" offering recently established by merging a private concern (Rockwell) with a small college. There have to be more legitimate training programs out there. Does anyone know of an actual accredited program out there that isn't a sales pitch in disguise???

Ron Berglund

Ron,

I want you to try Medical Laser Dynamics (mldynamics.com). Ask for Pat Clark or John Hoopman. If they can't help you they should know someone who can. They are two of the most reputable guys in the business (and there aren't many). John is the Laser Safety Officer for UT Southwestern and I beleive their educational seminar is sponsored by a university program. They put together a training program for Texas where the regulations are very similar. Good Luck.

Anyone have any information on Malpractice carriers for Medical Spas

Does anyone have any experience with Lloyds of London in reference to Malpractice Ins. for Medical Spas or other carriers to get a quote from.