Insurance for Day Spas
People come to your day spa to relax. While you do your best to maintain a soothing atmosphere, there are plenty of things that could go wrong. A customer could slip while exiting the sauna. An employee could develop an allergic reaction to massage oil. A windstorm could tear the roof off your building, leading to costly repairs and damaged spa equipment.
That's why day spa insurance is so important. It can help your small business pay for expenses like attorney fees, damages, repair costs, medical bills, and worker injuries.
Here's a look at some of the day spa insurance policies our customers often purchase.
General Liability Insurance
Whenever you interact with the public, it's a good idea to have General Liability Insurance. It's often called slip-and-fall insurance because it covers customer accidents and injuries. So if one of your clients trips and injures themselves while leaving the massage room, General Liability can help pay for their medical bills. It may also cover customer injuries caused by malfunctioning equipment, such as a client getting burned by a tanning bed.
General Liability Insurance can also cover you for lawsuits related to third-party property damage and advertising injuries. The average day spa owner pays roughly $425 per year for this policy, which is about $35 a month.
You also might want to consider a Business Owner's Policy (BOP). This is a two-for-one insurance policy for small businesses. It bundles General Liability Insurance with Commercial Property Insurance, which provides coverage for your building, as well as business property like…
- Massage tables.
- Facial equipment.
- Waiting room furniture.
Most day spa owners typically pay less for a BOP than they would if they bought each policy separately.
Professional Liability Insurance
Day spa owners also benefit from Professional Liability Insurance. It typically covers lawsuits over professional mistakes or offenses, such as…
- Services that did not meet expectations.
- Sexual misconduct.
Because you perform intimate care services for customers, often involving products like chemicals, hot wax, and more, there is always the chance something could go wrong and a customer might sue.
For example, let's say you give a bride a facial peel a few days before her wedding. Unfortunately, her skin reacts poorly to the treatment, and her face is spotty and bright red on her big day. If she sues you over the treatment and the emotional distress it caused, your Professional Liability policy may cover your legal bills.
Worth noting: If you work as a contractor at a day spa, you may need to purchase your own Professional Liability Insurance to protect yourself if a client sues.
Professional Liability Insurance for day spas typically costs about $500 a year or $42 a month.
Workers' Compensation Insurance
If you have employees at your spa, your state may require you to purchase Workers' Compensation Insurance. Check your state's Workers' Comp laws to learn more about your obligations.
Workers' Comp can help out when your employees get hurt on the job. For example, say one of your employees gets a burn while trying to clean up hot wax or they slip when and hit their head while cleaning the sauna. Worker's Comp can cover their medical bills and part of their lost wages while they recover.