Do Medispas need Liability Insurance?

The Doctors’ Insurance Agency insures Medispas for medical malpractice in California and in other states.  We  work hard to protect our individual physicians from liability claims that do not involve their medical practices.

Protecting their limit of insurance may sound silly, actually, isn’t that what the insurance is there for?...to protect them from claims against their personal assets.

Regardless of the claim’s origins?..

Actually, consider that individual medical malpractice carriers reward physicians for good claims histories

Even the renewability of their policies and the policies of their partners, employed physicians and associates can be effected by the individual claims history.

In a conversation recently with one of our Plastic Surgery Centers, we had this very discussion;  Do they need a separate ‘stand alone’ medical spa insurance policy (especially if the spa is not separate from the plastic surgery center):

Indeed, a medical malpractice insurance carrier can add a rider (or, simply include the name of the spa portion of the plastic surgery practice in order to cover the added risk and business expansion.

And,, there are some that will not cover this. 

 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…and, arguably is enough coverage if added to the vicarious risk of the plastic surgery medical group;  However, if there is also a separate plastic Surgery Center, used by others in the community, then I would argue the added exposure of a

There are companies that manage just medispa business.  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.  Additional  information about specific procedures and the staff providing the services will drive the premium determination.

It is important not to underestimate the services provided at a medispa.   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. 

While it is not required that the physician supervising the procedures be a Derm or a Plastic, they should be qualified and specifically trained in these services.   

 The Medical Director should also be covered either on this policy or on their own.  Medical Directors are usually not covered to provide the services.. and, of course, with some added premium, the medispa professional liability policy can be expanded to include administrative and aesthetic procedures.

Once you obtain medispa professional liability coverage, 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.

Comments

You need to log in to comment.
  1. Re: Clinical Research Liability

    Do you recommend purchasing a tail insurance or a occurrence based insurance and add a tail policy afterwards...

    -- Ann Shang

  2. Re: Clinical Research Liability

    I am talking with a CTO in the US ( I am in US too) to be a contractor doing clinical trials on a part...

    -- Ann Shang

  3. Re: The Podiatrists Market Research Report states that demand for podiatrists will likely benefit from healthcare reform.

    My husband has been feeling a lot of pain in his feet recently. We think this could be due to his posture...

    -- Sarah

  4. Re: Developing Walk In and Urgent Care Centers

    It's good to see that urgent care facilities are becoming more and more prevalent. You are right that...

    -- Caden Dahl

  5. Re: Functional Medicine Malpractice Insurance

    Interested in obtaining information for FM MP

    -- Cynthia Shughrue

  6. Re: Visiting Residents/Intern/ Fellow (Hands On) Medical Malpractice Insurance

    I am a final year medical student planning to do a couple of electives in medical school in the US and...

    -- Varun

  7. Re: Medical Malpractice Insurance Benefits, expanding to outpatient facilities

    I like the idea of some of the cost returning to the normal discounted market after a few years of claims...

    -- Dave Anderson

  8. Re: Who Can Perform Liposuction Surgery?

    This is very interesting content! I have thoroughly enjoyed reading your points and have come to the...

    -- Re: Who Can Perform Liposuction Surgery?

    Thanks for helping me understand any licensed physician can actually perform this procedure as per the...

    -- Millie Hue

  9. Re: The Podiatrists Market Research Report states that demand for podiatrists will likely benefit from healthcare reform.

    Thanks for giving me more information about the benefits of podiatrists from the healthcare reform. ...

    -- James