Medical Spa Insurance FAQ's

Here's a FAQ from a provider.
Tegner-Miller Insurance Brokers link

Q: Are the insurance requirements for a "day spa" different from those for a "med spa"?

    A: Since a med spa incorporates procedures and services that most States consider the “practice of medicine”, a qualified physician must be involved. Professional liability coverage must cover your spa, the clinicians performing the procedures and the physician in his/her role.

Q: Must the physician associated with the medical spa be a Plastic Surgeon or Dermatologist?

    A: No. However, the physician must be qualified to supervise those performing the procedures.

Q: Isn’t the easiest way for a physician to cover his medical spa-related work to secure a rider from his present malpractice carrier?

    A: No. Most insurers do not offer these types of riders.

Q: Are there any required liability limits?

    A: For professional liability (malpractice) coverage, the typical liability limits are $1,000,000 per occurrence and $3,000,000 in aggregate. This will vary, however, depending on the carrier and State in which the spa operates.

Q: What is required to procure coverage and how long is the process?

    A: We generally need a medical facility application along with a copy of the physician’s resume/C.V. In some cases, a carrier may request proof that the physician has his/her own malpractice coverage, information about specific procedures or other information related to underwriting. On average, you should allow 2-4 weeks from time the application is returned to Tegner-Miller. Call us today, if you need your coverage expedited.

Q: Is it true that payment for professional liability insurance is required in advance?

    A: Yes. However, we have financing options available.

Q: Can TMIB provide coverage in all 50 states?

    A: Yes. We can write your insurance directly in the majority of cases. If not, we will help you through one of our strategic partners.

Q: Is there a minimum premium for medical spa insurance?

    A: Our carriers have programs that begin at $7,500 annually. However, premiums generally run $15,000.00 - $25,000.00 for new companies. Premiums are based on the number of procedures performed and/or a projection of your annual gross revenue.

Q: Is the Medical Director automatically covered under a medical spa policy?

    A: In most cases, yes. However, they must be approved by the carrier prior to and are generally only covered for their administrative work – not procedures performed. Procedures performed must be applied for separately should their current coverage not extend.

Q:  Is it possible to add additional medical spa locations onto an existing policy?

    A: Yes. However, additional premium may be required.

Q: Are convention events covered under a medical spa policy?

    A: Yes. You must however, notify Tegner-Miller in advance so that we may be certain no complications are encountered.

Q: Once I have secured Medical Malpractice Insurance for my Medical Spa and staff, am I adequately insured?

    A: From a Medical Professional standpoint you would be adequately covered. However, you have other exposures such as your Workers' Compensation, Business Office Package, Benefits, etc. that are not covered by a professional liability policy. Fortunately, Tegner-Miller can assist you with all of your insurance needs. Contact our office today for additional information.

Comments

[aestheticRN]

If your state does not require you to have malpractice you might want to skip getting it. Especially for a start up business where expenses are tight. It's very difficult to permanently damage or harm a pt. with most non-surgical procedures. You can set up your assets and business in ways to protect yourself in case you did get sued. Basically, don't technically "own" anything.

You can be safe and not carry malpractice for these procedures.

[MD]

There are some states like colarado that require you to have malpractice insurance to have a license. Structure yourself correctly. There isn't anything that says that what coverage you carry must actually cover the procedure you do. Friend in TN has to carry it, but has the lowest/cheepest plan he can get. When attorney called to get his policy number, he says, not going to be covered anyway, so why bother? I've got an 89 chevy you can have if you want to do the dance? The phone went "click." Mal insurance only serves to enrich the attorneys, without it, not one of the guys will take a case without money from the client. Without a mal policy, you've got nothing, so they are not interested.