Insurance for Day Spas

1. Commercial Property Insurance

Whether you are operating your day spa from your residential property, a rented commercial property, or the one that you own, you will need commercial property insurance coverage to protect your commercial property from damage. This insurance coverage will help you file a claim in case your commercial property gets damaged, suffers losses, and needs repair or you have to urgently move elsewhere.

Many unexpected accidents like fire, theft, acts of vandalism, and natural disasters like storms, floods, and earthquakes can damage your commercial property and hinder your business operations. Even small fixtures and repairs could cost you thousands of dollars, but if you have reliable commercial property insurance in place, you can save yourself from paying these hefty repair costs and instead invest this money into your business to recover the loss.

But before signing up for a commercial property insurance plan, you must check the coverage it provides and whether the insurance company has the option of add-ons so that you can customize your commercial property insurance plan. Quite a few insurance companies allow their customers to combine commercial property insurance with commercial auto insurance so that both the assets are insured, and the customer pays a premium much lower than what he would be paying if the policies were purchased separately.

The average cost of commercial property insurance in the USA is between $700 and $2,000 annually. However, it must be noted the premiums for commercial property insurance vary from city to city and from business to business, so a restaurant in Boston could be paying $3,500 per year, but an electronics store in Chicago will only have to pay $800 per year.

2. General Liability Insurance

According to the Hartford Insurance company, every 4 out of 10 small businesses feel the need to file a general liability claim within 10 years of their business’s operations. All businesses, including day spas, can face risks such as bodily injuries to their clients on the business premises, accidental damage to customer’s parked car, and legal challenges such as official complaints and lawsuits.

All these occurrences can lead to great financial pressure on your company as you will need money to pay for the medical expenses of the person who has sustained an injury, the cost of repair in case the car or property of a third party get damaged, and the legal fees of pursuing your case in court if a lawsuit is filed against your business.

Some insurance companies will suggest that their customers purchase general liability insurance along with professional liability insurance as this will protect the private practice and professionals from lengthy legal cases and their costs in case a lawsuit is filed for malpractice, negligence, or harassment.

Day spas could benefit from professional liability insurance, also known as errors and omission insurance, as their business involves treating customers and helping them feel better than before. They are directly dealing with their customer’s health, and in case a customer files a case that he or she suffered adverse effects after the massage therapy, the professional liability claim can be used to pursue the legal battle.

The average cost of general liability insurance is between $50 and $100 per month. However, the price may vary greatly depending on the coverage, location of the spa, claims history, years of experience in the wellness industry, and the size of the business. The more customers you receive per day, the greater the risk will be, and hence, the cost of your monthly premiums will be slightly higher. 

3. Workers’ Compensation



In most states of the USA, it is compulsory for all businesses, even those with just 1 employee, to have a worker’s compensation insurance policy in place. The workers’ compensation policy covers the cost of medical expenses, temporary financial support, and lost wages in case an employee gets injured or seriously ill because of the job. If the employee dies as a result of the injuries that were sustained, then the workers’ compensation claim can be used to provide for his/ her family.

For example, if your employee slips on the wet floor at the spa and fractures her leg, the workers’ compensation claim can be used to pay her medical bills and to give her the salary for the number of days she is not able to clock in for work because of her injury.

The average cost of worker’s compensation in the USA is between $30 and $80 per month. But the figures can vary depending on the size and location of the company and the risks involved. More risky businesses such as chemical industries or construction industry will pay higher premiums as compared to a gift shop or a bakery.

4. Professional Liability Insurance

Masseuse or massage therapists are expected to apply their skills and knowledge correctly when working on their clients, and they’re sometimes held financially responsible if they fail to do so.

Professional liability insurance policies help shield day spa professionals from certain liability claims and lawsuits they might face after making a mistake in their work.

Professional liability insurance is a specialized form of commercial insurance that’s tailored to meet the unique liability risk mitigation needs that professionals have.

Like other types of liability insurance, professional liability normally covers both legal costs and settlement fees (up to a policy’s limits) if a professional has a covered claim.