What Insurance Do Spas Need?
Insurance providers have policies that provide coverage for risks specific to spa establishments. Customized insurance for spas often includes the following features:
Insurance coverage for spas.
Insurance for business disruptions.
Insurance for commercial properties.
Insurance for workers’ compensation.
Spa Business Interruption Insurance
Carriers offer business interruption insurance for spas, so your spa will close for an indefinite period of time due to an economic crisis, business renovation, or relocation.
Insurance for business disruptions. will provide money that’s equal or partial to the monthly average revenue of your spa. In practice, you use this insurance policy when the spa temporarily closes. Through business interruption insurance, your spa can pay for their employee wages, employee benefits, loans, mortgages, and other operational costs.
Unless explicitly stated otherwise by the carrier, this insurance for spa businesses does not cover closures caused by floods, earthquakes, the Covid-19 pandemic, and similar events. It’s important to note that business interruption insurance does not encompass all types of business closures. Keep this in mind.
Day Spa Insurance
If you are the owner, consider going for a spa day, as it offers a range of features such as insurance. The main focus of the spa is on quick treatments like pedicures, massages, and facials. Day spas differ from regular spas in that they also provide non-surgical beauty services.
Comprehensive liability coverage. with a $1 million-$2 million per occurrence and aggregate limit
$5,000 coverage for tools and equipment is included in the general liability insurance.
Professional indemnity insurance. with a $1 million-$3 million per occurrence and aggregate limit
Coverage for sexual abuse and molestation is included in professional liability insurance.
$25,000-$500,000 insurance coverage for commercial properties.
Insurance for workers’ compensation. with a $500,000-$1 million employer’s liability coverage
Commercial Property Insurance for Spas
A spa has a lot of equipment that can be costly to replace or repair, as shown in the table below.
| Type of Equipment | Replacement Cost | Repair Cost |
|---|---|---|
| Massage Table | $6,000 | $900 |
| Manicure and pedicure station | $950 | $150 |
| Reclining chair | $1,500 | $200 |
| Scotch hose | $1,200 | $250 |
| Hydrotherapy tub | $8,000 | $1,500 |
| Laser removal machine | $3,621 | $1,340 |
Carriers offer commercial property insurance to spas. Your spa has a commercial building where clients visit, employees provide a service, and equipment or materials are stored. Insurance for commercial properties. functions to cover the building and its contents.
Insurance for commercial properties. will reimburse your losses if your spa burns to the ground or gets destroyed by extreme weather. The amount of reimbursement you’ll get will be equal to the value of the totaled building.
In this commercial property insurance situation, equal reimbursements will be provided to compensate for the value of the damaged building structures. Your spa’s building structures will be damaged by various perils such as vandalism, theft, extreme weather conditions, and fire.
Insurance for commercial properties. has inclusions that protect business equipment and other valuables inside of your spa’s building. These inclusions are:
Coverage for equipment and tools used in business.
Stock and content coverage.
Fire, extreme weather, theft, vandalism, and other covered perils might result in the loss or damage of equipment such as facial steamers, magnifying lamps, UV tower warmers, sterilization units, hydraulic chairs, electric facial hair remover, hydrotherapy tubs, and others. Coverage for equipment and tools used in business. will help by reimbursing the money you spent on these items.
When your investment sees damage or loss due to vandalism, theft, fire, or other covered perils, it also covers the contents and stocks of your office, including important documents, computers, furniture, and decorations. Additionally, your spa has other valuable supplies such as essential oils, perfumes, healing stones, aromatherapy candles, lotions, and creams.
Actual Cash Value vs Replacement Cost
Take a glance beneath the table to observe the contrasting aspects. Can you distinguish between actual cash value coverage and replacement cost coverage? When purchasing commercial property insurance, insurance companies will inquire about your preference for either replacement cost coverage or actual cash value coverage.
Replacement Cost |
Actual Cash Value |
|---|---|
| In a replacement cost, the reimbursements you’ll get will be equal to the value of scheduled commercial property not taking depreciation into account. For example, if your commercial building is $1 million, you’ll also receive the same amount when a covered peril happens | In an actual cash value, the reimbursements you’ll get will be equal to the depreciated value of the scheduled property. For example, if your commercial building is $1 million and it has depreciated 5% when it was destroyed, you’ll only receive $500,000 |
Also read:.
Spa Insurance Cost
The average price for spa liability insurance is around $46 per month or $552 per year, providing coverage of $1 million.
Spas pay $42.5 per month or $510 per year for $1 million professional liability insurance.
The price of business property insurance for spas is $61 per month or $732 per year.
Insurance for business disruptions. for spas costs $42 a month or $504 a year
Additionally, we have included the pricing of the insurance providers that offer coverage for spas, for further information.
| Company | Cost per month | Cost per year | Best for |
|---|---|---|---|
| CoverWallet | $25 | $300 | Online spa business insurance quote comparison |
| Thimble | $30 | $360 | Short-term day spa insurance |
| Next | $35 | $420 | Quick spa business insurance application |
| Hiscox | $39 | $468 | Beauty shop and spas |
| Progressive | $42 | $504 | Mobile spas |
| State Farm | $50 | $600 | Spas, estheticians, cosmetologists, and barbers |
Sexual Harassment Insurance for Spas
Here are a few examples where a wellness center encountered a lawsuit due to sexual harassment and ultimately provided compensation to the victim.
Massage Heights, a spa operating in multiple locations in the United States, had to pay $3.3 million in a sexual harassment lawsuit.
Massage Lux, a health and relaxation facility in Williamsburg, was compelled to compensate $100 million after four customers made accusations of sexual assault incidents.
Massage Envy, one of the biggest wellness centers in the United States, faced a $2 million lawsuit from one of its clients.
Sexual harassment is not covered by liability insurance (although some argue that general liability insurance can be beneficial).
The characteristics of insurance coverage for sexual misconduct and molestation liability encompass the following: This particular policy provides protection against lawsuits for sexual harassment initiated by clients, known as sexual misconduct and molestation liability insurance.
Minimum premium of $3,500.
Minimum retention of $15,000.
Policy limit ranges from $250,000 to $5 million.
$250,000 sub-limit for physical attack and aggression linked to sexual misconduct.
Accessible to educational establishments, non-profit entities, religious organizations, transportation services, healthcare facilities, and recreational providers.
Workers Compensation Insurance for Spas
Workers’ compensation insurance can provide assistance to employees who suffer from work-related diseases or injuries by helping with the lost income, rehabilitation, medical procedures, medication, and hospitalization required for their care.
This is the compensation income lost in some states, which can be higher or lower than this. In most cases, this is the average weekly wage of the employee, which will be equal to two-thirds of the compensation income lost.
If an employee dies, the insurance will provide workers’ compensation coverage. In addition, the insurance will give an allowance to the employee’s dependents, amounting to 67% or two-thirds of the employee’s weekly average wage. It will also pay for funeral expenses.
Does Workers Compensation Provide Legal Protection?
Insurance for workers’ compensation. provides legal protection for your business. Most workers comp laws or labor laws prohibit employees from suing employers whose business is covered with workers’ compensation insurance.
Spa Liability Insurance
Insurance coverage for spas. is a collective term for insurance policies that protect your spa business against legal and financial liability for the injuries, property damage, or economic loss of third parties. Liability policies commonly available are:
Comprehensive liability coverage.
Professional indemnity insurance.
Insurance for public liability.
Spa General Liability Insurance
The table below outlines the cost of personal injury lawsuits in which the most common mechanism of injury is slip and fall accidents and exposures related to spa. These lawsuits can be costly due to property damage and personal injuries suffered by visitors, delivery clients, or individuals involved in spa-related incidents.
| Type of Injury | Settlement Cost |
|---|---|
| Concussion | $45,000 |
| Fracture | $110,000 |
| Dislocation | $59,000 |
Comprehensive liability coverage. for spas is the policy that will take care of personal injuries or property damage clients and other third parties experienced due to your spa’s business operations. This insurance provides funds for medical treatment, compensation for pain and suffering, and reimburses the value of a damaged property.
Optional Coverages in General Liability Insurance
Comprehensive liability coverage., with its optional coverages added, will provide more protection for businesses. Such optional coverages are:
Coverage for injuries caused by advertising.
Coverage for products and finished operations.
Liability coverage for rented premises.
Liability for advertising or reputational harm is a very problematic exposure for your spa business. The cost of wrapping things up without insurance will be hundreds or even millions of dollars. This is why be smart and add advertising injury coverage to general liability insurance. Coverage for injuries caused by advertising. will cover attorney fees, compensatory payments ordered by the court, and other legal costs should a third-party files a claim against your business for:
Slander.
Libel.
False advertising.
Copyright infringement.
If a client decides to file a claim for damages to their property or personal injuries that may have been caused by the completion of your spa’s services, the client will cover other legal costs, attorney fees, and compensatory payments if coverage for operations and products is past.
Do you rent a commercial space for your spa’s business operations? Liability coverage for rented premises. is useful if this is the case. Liability coverage for rented premises. will pay the landlord on your behalf if the rented commercial space incurs damage due to fire.
Professional Liability Insurance
The following table displays the expenses associated with resolving these injuries in a negligence legal case. Infections, chemical burns, lacerations or scrapes, hair loss, and wax burns are prevalent injuries that can be caused by either of the two factors. Spas must consider negligence or error as an additional liability.
| Types of Injury | Settlement Cost in Negligence Lawsuit |
|---|---|
| Wax Burns | $56,000 |
| Abrasions | $10,000 |
| Cuts | $5,000 |
| Hair loss | $300,000 |
| Chemical burns | $250,000 |
| Infections | $60,000 |
Professional indemnity insurance. will take care of the cost associated with negligence lawsuits. This gives the policyholder $1 million up to $2 million. But note that the language of professional liability insurance also provides coverage for claims filed because of:
Misrepresentation.
Breach of trust and equitable treatment.
Breach of privacy.
Other actions are deemed as mistakes and exclusions.
Public Liability Insurance for Spa Business
Insurance for public liability. works the same way as general liability insurance. It will take care of personal injury claims and property damage claims against your business. However, compared to general liability insurance, public liability insurance is more limited in its scope as you can’t add optional policies to it. In fact, it’s safe to say that general liability insurance is a comprehensive version of public liability insurance.
Best Spa Insurance Companies
When shopping around for spa insurance coverage, we’ll take a look at the pros and cons of pricing and liability coverage, with a general coverage of 1 million. Now, let’s choose the right company to work with, as we explore the best insurance companies in the market.
To compare online business spa insurance quotes, click on the ‘Get Quotes’ button below and be sure to get quotes from leading insurance companies as well as other carriers in the business spa industry.
CoverWallet Insurance for Spas
| Insuranks rating | 10/10 |
|---|---|
| Best for | Online spa insurance quote comparison |
| Average cost | $25 per month |
| Year Founded | September 2015 and acquired by AON at 2020 |
| CEO | Inaki Beringuer (former) |
| Headquarters | 101 Avenue of the Americas 18th Floor New York, NY 10013 United States |
| Customer Support | (646) 844-9933 |
| AM Best Rating | A ( excellent) |
| BBB Rating | A+ |
| Number of Complaints | 158 |
Why Get Insured by CoverWallet?
Top online platform for comparing quotes for insurance coverage for spa businesses.
Customizable policies.
Spa insurance policies begin at $300 per year.
Why Take CoverWallet with a Grain of Salt?
Certain policies provided by CoverWallet for spas are underwritten by its partners.
The MyCoverWallet app enables users to easily handle and purchase insurance policies, while also providing access to quotes from various insurance providers across the United States. When it comes to spa business insurance, CoverWallet stands out as the top-notch online platform for comparing quotes.
Progressive Insurance for Spas
| Insuranks rating | 6/10 |
|---|---|
| Best for | Mobile spas |
| Average cost | $42 |
| Year Founded | 1937 |
| CEO | Tricia Griffith |
| Headquarters | Mayfield, Ohio, United States |
| Customer Support | 1-800-444-4487 and customer service portal |
| AM Best Rating | A+ ( superior) |
| BBB Rating | D – |
| Number of Complaints | 1,313 |
Why Get Insured by Progressive?
Offers coverage for both business and commercial vehicles.
Encompasses a wide range of regions.
Open to collaborating with mobile wellness establishments.
Why Take Progressive with a Grain of Salt?
Evaluations are not what you would anticipate from an AM-Best rated corporation.
Progressive specializes in providing insurance coverage for various types of spas, including day spas, health spas, mobile spas, and massage spas. They offer commercial auto insurance for spa businesses, along with general liability coverage.
Hiscox Insurance for Spas
| Insuranks rating | 7/10 |
|---|---|
| Best for | Beauty shop and spas |
| Average cost | $39 a month |
| Year Founded | 1901 |
| CEO | Aki Hussain |
| Headquarters | Pembroke Parish, Bermuda |
| Customer Support | 1-866-424-8508 and customer.relations@hiscox.com |
| AM Best Rating | A – excellent |
| BBB Rating | A- |
| Number of Complaints | 12 |
Why Get Insured by Hiscox?
Provides prompt responses to claims.
There are two types of coverage for spas.
It also includes beauty salons.
Why Take Hiscox with a Grain of Salt?
Restricted range of coverage.
Hiscox offers policies for spas, which are included in their “spa and beauty shop coverage” policies, including professional liability coverage and general liability coverage. Customers can select flexible payment options and benefit from prompt responses to their claims.
State Farm Insurance for Spas
| Insuranks rating | 6/10 |
|---|---|
| Best for | Spas, estheticians, cosmetologists, and barbers |
| Average cost | $50 |
| Year Founded | 1922 |
| CEO | Michael L. Tipsord |
| Headquarters | Bloomington, Illinois, United States |
| Customer Support | 800-782-8332 and customer service portal |
| AM Best Rating | A++ ( superior) |
| BBB Rating | B |
| Number of Complaints | 538 |
Why Get Insured By State Farm?
Round-the-clock phone and online claims service.
Besides the usual policies for spas, there is also a computer property policy in place.
Provides optional coverages for the policyholder to personalize.
Why Take State Farm with a Grain of Salt?
Some customers complained that State Farm agents were rude and mocked them for being stupid by not knowing how their policy works.
State Farm offers an online claims tracker on its website. In order to alleviate customer concerns, the company prides itself on having a highly efficient claims process. This is achieved by providing customers with various phone lines dedicated to different types of claims, including auto claims, glass claims, loan approval, and business insurance claims. State Farm provides insurance coverage not only for spas, but also for barbers, cosmetologists, and estheticians.
Thimble Insurance for Spas
| Insuranks rating | 9/10 |
|---|---|
| Best for | Short-term day spa insurance |
| Average cost | $30 |
| Year Founded | 2015 |
| CEO | Jay Bregman |
| Headquarters | New York City |
| Customer Support | hello@verifly.com |
| AM Best Rating | A+ ( excellent) |
| BBB Rating | A+ |
| Number of Complaints | 53 |
Why Get Insured by Thimble?
Quick insurance application.
Thimble offers short-term insurance, which is beneficial for launching spas.
Provides the most beneficial foundational insurance plans that small spas require.
Why Take Thimble with a Grain of Salt?
Some customers claim that Thimble can be quite challenging when it comes to canceling insurance.
Thimble offers separate policies for both commercial property insurance and general liability insurance, making it the best option for those who don’t need coverage for a long time. However, Thimble’s insurance policies, including spa workers’ compensation insurance and general liability insurance, are not available as short-term coverage options.
Next Insurance for Spas
| Insuranks rating | 8/10 |
|---|---|
| Best for | Quick spa insurance application |
| Average cost | $43 |
| Year Founded | 2015 |
| CEO | Guy Goldstein |
| Headquarters | 75 California Ave, Palo Alto, CA 94304, United States |
| Customer Support | 1-855-222-5919 and support@nextinsurance.com |
| AM Best Rating | A- (excellent) |
| BBB Rating | A+ |
| Number of Complaints | 13 |
Why Get Insured by Next?
Provides insurance coverage to customers within a span of 5 minutes.
There is no deductible on the general liability insurance for spas.
Next provides comprehensive coverage for spas, including general liability, professional liability (E&O), commercial auto, workers’ compensation, and commercial property policies.
Enables the consolidation of insurance policies to receive a minimum 5% discount.
Why Take Next with a Grain of Salt?
Some clients have mentioned that Next occasionally imposes high fees on newly established spas.
Next, this company boasts a very fast insurance application process. Its insurance policies are available in most states in the United States. There is no need for customers to engage in lengthy phone calls with agents. The company uses big data technology to figure out which policies customers absolutely need.