Why do day spas need insurance?
Even at the safest spa, a customer could slip or have an allergic reaction to a product. Day spa insurance helps cover medical bills, property repairs, legal costs, and other risks of massage and skin care.
Find the right coverage
Insureon helps spa owners compare insurance quotes for policies that match your unique risks.
Get free expert advice and peace of mind knowing you have the right property and liability coverage for your small business.
What types of business insurance do day spas need?
These insurance policies cover the most common risks in the spa industry.
General liability insurance
A general liability insurance policy covers basic day spa risks, such as a customer slipping while coming out of the shower. Bundle it with commercial property insurance in a BOP for a discount.
- Customer bodily injury
- Customer property damage
- Product liability insurance
Business owner’s policy
A BOP is the most cost-effective way for day spas to purchase commercial property coverage and general liability insurance together. Small low-risk businesses are usually eligible.
- Third-party injuries and property damage
- Business property damage
- Business interruption coverage
Professional liability insurance
Professional liability coverage helps pay legal costs related to work performance, such as a customer claiming adverse effects from a facial. It's also called malpractice insurance, or errors and omissions insurance (E&O).
- Customer dissatisfaction
- Accusations of negligence
- Claims that bodywork led to injury
Workers’ compensation insurance
Most states require workers' comp for day spas that have employees. It also protects sole proprietors from work injury costs that health insurance might deny.
- Employee medical expenses
- Disability benefits
- Legal fees from employee injuries
Cyber insurance
Cyber liability insurance covers costs related to data breaches and cyberattacks. It's recommended for day spas that handle credit card numbers and other personal information.
- Data breach notification costs
- Fraud monitoring services
- Cyber incident investigations
Commercial auto insurance
Commercial auto insurance covers the cost of accidents involving a vehicle owned by your day spa. Most states require this coverage for vehicles owned by a business.
- Property damage caused by your vehicle
- Legal costs from auto accidents
- Vehicle theft and vandalism
How much does personal care, beauty, and day spa insurance cost?
A day spa with only a couple employees will pay less than one with several employees.
Factors that affect day spa business insurance premiums include:
- Wellness treatments offered, such as facials, massages, Reiki, or tanning
- Business property and equipment
- Business income
- Location
- Types of insurance coverage
- Coverage limits and deductibles
- Add-ons, like additional insureds
How do I get day spa insurance?
It's easy to get day spa insurance or medical spa insurance if you have your business information on hand. Our insurance application will ask for basic facts about your spa, such as revenue and number of employees. You can buy a policy online and get a certificate of insurance with Insureon in three easy steps:
- Complete a free online application.
- Compare insurance quotes and choose policies.
- Pay for your policy and download a certificate.
Insureon's licensed insurance agents work with top-rated U.S. insurance companies to help you find the right spa insurance coverage for your business needs, whether you work independently or hire employees.
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Business insurance day spas need
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MALE VOICEOVER: Running a day spa means helping clients relax and feel their best... but one accident, injury, or lawsuit could put your business under serious financial pressure.
So, what kind of insurance does a spa actually need?
Let's break down the basics of day spa insurance, including how coverage can differ for a medical spa.
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Day spas should carry general liability insurance.
This can help cover common third-party claims, such as a client slipping and getting injured at your spa, damaging a customer's property, or certain product-related claims.
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You'll also want to consider professional liability insurance.
This coverage can help with legal costs related to your professional services, such as a customer claiming they experienced an adverse effect from a facial or bodywork that caused an injury.
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Whether you own or rent your physical location, you should look at a business owner's policy. Also called a BOP, this insurance bundle combines general liability with commercial property coverage, often for less than purchasing each policy individually.
It can help protect your business property and equipment, as well as cover certain liability risks. A BOP may also include business interruption coverage, depending on the policy.
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If you have employees, workers' compensation may be required by your state. It helps cover employee medical expenses and other costs associated with workplace injuries.
And don't overlook cyber insurance. Spas often handle payment card information and other personal data, so cyber coverage can help with certain costs following a data breach or cyberattack.
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Now, here's an important distinction: a day spa isn't necessarily the same as a medical spa, also called a medi-spa.
Day spas typically provide nonmedical services like massages, facials, waxing, and other wellness treatments.
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Alternatively, medi-spas typically provide medical or cosmetic procedures such as Botox, fillers, microneedling, or laser treatments. Because these services can create additional professional and medical liability risks, a medi-spa may need specialized coverage, like medical malpractice insurance.
So, the right spa insurance package depends heavily on the services you actually provide.
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If you're looking for day spa insurance or medi-spa insurance, Insureon makes it easy to compare coverage options.
Complete one online application, review quotes from multiple insurance companies, and choose the coverage that best fits your business.
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Tap the link to get small business insurance that you can count on.
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FAQs about business insurance for day spas
Review answers to frequently asked questions (FAQs) about day spa business insurance and more.
What is the difference between a day spa and a med spa?
A day spa provides non-medical beauty and wellness services such as massage, waxing, saunas, and lash and brow treatments. These services are performed by licensed estheticians or massage therapists and don't require a medical director.
Because the risk level is lower, day spas typically need general liability, professional liability, commercial property coverage, and workers’ compensation if they have employees. They usually don’t need medical malpractice insurance since they aren’t performing medical procedures.
A med spa, on the other hand, blends spa services with cosmetic medical treatments like Botox, fillers, microneedling, laser services, and other procedures that must be administered or supervised by licensed healthcare professionals.
This clinical component increases liability exposure, so med spas often require medical malpractice insurance, along with professional liability, general liability, property insurance, workers’ comp, and sometimes cyber insurance due to handling medical records.
In short, day spas focus on relaxation and non-invasive services with standard business liability needs, while med spas offer higher-risk medical procedures that demand specialized coverage—especially malpractice protection.
If my day spa sells products, do I need cosmetic product liability insurance?
Yes. If your day spa sells or uses skincare or beauty products, cosmetic product liability insurance can protect you if a customer has an allergic reaction, irritation, or injury from something you provided. This coverage helps pay for legal defense, settlements, and judgments, even if you were simply reselling the product.
It can protect your spa from claims involving:
- Allergic reactions or illness caused by lotions, serums, masks, or other products you sell or apply.
- Injuries such as burns or skin damage linked to a product used during a service.
Even though day spas don’t perform medical treatments, the products you offer can still lead to costly claims, making product liability coverage a smart safeguard.
What other types of insurance should a day spa consider?
In addition to general liability coverage and professional liability, day spas may want to consider the following coverages to protect their business:
- Business interruption insurance: If your spa must close temporarily due to a covered event—like a fire or natural disaster—this coverage can help replace lost income.
- Extra expense insurance: Helps pay for additional costs to keep your business running while recovering from a covered event, such as renting temporary space or equipment.
- Equipment breakdown insurance: Day spas rely on specialized equipment like massage tables, facial machines, and steamers. This coverage helps repair or replace equipment that breaks down due to mechanical or electrical failure.
- Employment practices liability insurance (EPLI): This protects your spa from claims related to employment issues, such as wrongful termination, harassment, or discrimination.
These policies provide extra layers of protection beyond standard liability and property coverage, helping ensure your spa can recover quickly from unexpected events.