Day spas and medical spas have some different risk exposures. “Bodily injury exposures are what they are mainly concerned about in both types of spas,” says Cardinale. General liability will cover slips and falls, burns from the steam equipment in the sauna and small medical payment claims, as well as employee liability for running company vehicles for errands or transporting clients.

Professional liability will cover issues such as injuries related to chemical peels, massages, hair and nail treatments, laser therapy, and other types of esthetic medicine. Sexual misconduct and abuse are available as supplemental coverages. More serious incidents covered may include bodily injuries such as allergic reactions to products used in a particular process, severe burns from laser equipment or other procedures, and some negligence issues.

Risk management strategies

In addition to having appropriate and adequate coverage, there are risk management strategies that businesses specializing in health and well-being can employ to reduce their exposure.

Medical waivers can be made more stringent with the risks clearly spelled out so the client knows ahead of time what the worse-case scenarios associated with a procedure can be. Have clients sign a waiver indicating that the risks have been fully explained and that they understand them. Taking an in-depth medical history can identify possible drug interactions, allergies and other health problems that could be exacerbated by a procedure. Requiring a client to be seen by a physician beforehand and be cleared for the procedure could also be recommended.

Staff training is crucial, as are specific procedures and checklists to ensure that everyone is taking the proper care and precautions. Equipment safety and training, as well as ensuring staff members have the skills needed to operate the equipment are practical steps a company can take. Cardinale recommends that insurers follow up with insureds when there is a claim to see what steps are being taken to prevent it from occurring again, that there is a documented ongoing training program for staff, and suggests that the entities themselves periodically check to ensure that proper protocols are followed.

When there is a problem, addressing the problem immediately and goodwill gestures like offering a gift certificate for later use or additional services can be helpful in reducing the risk for an insured.

In the end, not all risks can be managed, but proactively taking steps to prevent unnecessary accidents and training staff on proper behaviors and techniques will help to reduce exposures for these clients.