Wellness Centers and Liability
Professional Liabilitiy Insurance Article in Les Nouvelles June 2012
“CAN I MAKE A PROFIT FROM THIS?”
“What liabilities are involved?”
These two questions are guaranteed to come up in regards to any emerging industry. As one of the fastest growing new industries on the market today, the business of wellness is no exception. Ten years ago, medical spas were the emerging trend. In today’s market, wellness facilities outnumber medical spas. The wellness facility represents a modern, urban version of the Fountain of Youth. These facilities offer comprehensive programs on how to attain and maintain your health and overall wellbeing. When you visit a wellness center you are signing up for a series of treatments and building a relationship with the provider. Much of the popularity of these facilities can be attributed to the baby boomer generation. As a large percentage of the population grows older, they begin to look for non-traditional ways to hold onto their youth—or at least the feeling of youth. The purpose of these facilities is to address clients’ physical, emotional and chemical needs. “Can you make a profit?” No one wants to grow old naturally if they can avoid it. Where is the fun in that? Since everyone will age at some point, there will always be an unlimited pool of potential clients seeking services to counteract aging.
“What liabilities are involved?” The answer to this question is more complicated. A traditional insurance market typically takes a more conservative approach when determining pricing for
the exposure of new procedures or industries. This article deals with two main exposures that need to be covered when purchasing an insurance policy: general liability and professional liability.
General liability covers the premises and operations, and offers protection against claims such as slips and falls. Professional liability coverage (also commonly known as errors and omissions insurance) helps protect skin care and spa professionals from liability for advice they give clients and poor service outcomes. As with any elective cosmetic procedure, there is the risk that a client will be dissatisfied with the results. It is important to remember that your guests are spending their disposable income.
When the cost is coming out of their own pocket, clients tend to expect more than they do when it is a required procedure and the insurance company is picking up the tab. When choosing an insurance policy for your business, it is important that cosmetic injury is covered to ensure you have a line of defense, even if an actual injury hasn’t occurred.
Click below to continue reading