🚫 Top 5 Med Spa Liability Insurance Mistakes to Avoid (And How to Get it Right)
- Jeff Schmidt
- May 12
- 4 min read
When you’re running a med spa — or getting ready to launch one — it’s easy to get caught up in hiring staff, ordering products, or decorating the treatment rooms.
But one wrong move on your med spa liability insurance policy can cost more than your entire startup budget.
In this post, we’ll walk through the top 5 med spa insurance mistakes — and how to avoid them like a pro.
Whether you’re a solo injector, mobile provider, or full-scale medical spa owner, this guide will help you protect your business from day one.
Why Med Spa Liability Insurance Is Different
Let’s be clear: med spas aren’t like salons or massage studios. You’re offering medical procedures with risks — and that changes everything when it comes to insurance.
Botox, fillers, IV therapy, lasers, PRP, microneedling — they all come with exposure to malpractice claims, licensing board investigations, and high-dollar lawsuits.
Getting the wrong policy (or skipping one entirely) can leave you completely unprotected when it matters most.
That’s why it’s critical to avoid these five common mistakes:
Mistake #1: Buying Generic Business Insurance
Many providers go to a local agent or online portal and get a “small business policy” designed for salons, wellness coaches, or massage therapists.
But these policies almost never include:
Medical malpractice
Aesthetic procedures
Supervision of RNs, PAs, or estheticians
High-risk services like PDO threads, PRP, or laser resurfacing
What to Do Instead:
Work with an insurance provider that specializes in medical aesthetics. Ask them:
Does this policy cover all of my procedures?
Are injectables, threads, or lasers excluded?
What if I supervise or rent to another injector?
Mistake #2: Relying on Someone Else’s Insurance
You might think you’re covered by:
The spa you rent space from
Your supervising physician
Your business partner’s name on the policy
But unless your name is listed as an insured party, you could be left out of coverage — and footing the bill yourself if something goes wrong.
Here’s the catch: most policies only cover the named insured, not everyone working at the location.
What to Do Instead:
Ask for a Certificate of Insurance (COI) showing your name
Confirm you’re listed as an individual provider
Get your own professional liability policy to cover your services
Mistake #3: Skipping Coverage Before Opening
You might think:
“I don’t need insurance yet. I haven’t even opened.”
But delays, accidents, and claims can happen before your first appointment — especially if you:
Signed a lease
Ordered inventory or equipment
Started advertising services
Hosted a soft opening or training day
We’ve seen lawsuits filed before a business was technically open.
What to Do Instead:
Secure pre-opening insurance. Many carriers allow you to:
Bind a policy with a future start date
Lock in lower pricing while you set up
Get your COI for licensing or landlords
Mistake #4: Not Including All Services in Your Application
When applying for insurance, it’s tempting to only list your “safe” services — like Botox or chemical peels — and leave out higher-risk procedures like:
PDO threads
Vampire facials
Laser resurfacing
IV vitamin therapy
But if you perform a service that’s not listed, your claim could be denied. This is one of the most common reasons med spa owners run into trouble during a lawsuit.
What to Do Instead:
Be honest and thorough when listing your services
Let your agent know if you’re planning to add services later
Ask for a mid-year policy update if your service menu changes
🧠 Remember: It’s better to disclose up front and get proper coverage than to be surprised after a claim.
Mistake #5: Choosing the Cheapest Policy — Without Reading the Fine Print
We get it — you’re trying to keep startup costs down.
But the cheapest policy isn’t always the best, especially if:
It has low limits ($100K instead of $1M)
It excludes procedures you offer
It doesn’t cover sexual misconduct defense (a growing risk)
It offers no cyber liability (but you store client data)
What to Do Instead:
Get a quote from a team that explains:
What’s covered
What’s excluded
What happens if you need to file a claim
💡 Here’s a real-world cost breakdown of med spa insurance →
🧾 Bonus: Quick Comparison Chart
🧠 FAQs About Med Spa Insurance Mistakes
Q: What’s the #1 mistake first-time med spa owners make?
A: They assume their business insurance automatically includes medical malpractice — it usually doesn’t.
Q: Can I update my insurance later if I add services?
A: Yes. Just make sure you let your broker know right away so they can endorse your policy.
Q: Do I need separate coverage if I have 1099 staff?
A: Usually, yes. Most 1099 providers need their own policies. We can help guide them, too.
Final Thoughts — Do It Right from Day One
Med spa insurance isn’t just a box to check — it’s your protection against lawsuits, licensing delays, and unexpected accidents.
The most common mistakes are also the easiest to avoid when you:
Work with the right partner
Disclose your services
Ask the right questions
Get coverage early (not late)
We’re here to help you do it right — with no surprises later.
