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Malpractice Insurance for MedSpas

A patient is treated in a medspa. Insurance is important for medspas 

Medical spas, or “Medspas,” work at the cutting-edge of medical treatment, combining cosmetic treatments with medical procedures in an outpatient setting. For this reason, they face unique liability exposures. Complications from procedures, lack of medical oversight, or improper staff training can quickly turn into costly lawsuits.

Homewood Insurance helps Medspas secure tailored malpractice and liability coverage to protect their business, staff, and reputation. This page explains the following

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The fastest way to find the right medspa liability insurance is to complete our quick quote form. Provide details about your procedures, staff qualifications, and facility setup, and we’ll match you with carriers that understand your risks and provide tailored protection.

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Insurance for Medical Spas can include:

  • Protection against malpractice claims from procedures like injectables, laser therapy, or chemical peels.
  • Coverage for bodily injury, property damage, and advertising-related claims.
  • Defense against patient allegations of negligence, misconduct, or lack of informed consent.
  • Coverage for staff including physicians, nurse practitioners, RNs, and licensed aestheticians.
  • Typical liability limits of $1M per claim / $3M aggregate, with tail and prior acts options.

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What does MedSpa Insurance Cover?

As medical spas continue to expand their services—offering everything from Botox and IV therapy to medical weight loss programs—they expose themselves to a complex range of liability risks. While general liability insurance is often the first line of defense, it’s not a catch-all. In fact, it's only one piece of the coverage puzzle.

Let’s take a closer look at what general liability insurance includes, why each component is essential, and where professional liability coverage becomes a necessity for your staff and supervising medical director.

What Does General Liability Insurance Cover for Medspas?

 General liability insurance protects your business against third-party claims for bodily injury, property damage, and personal or advertising injury. Here's what that means in practice:

A tasteful plain medspa waiting room with consultation rooms in the background people can be seen in waiting chairs and being attended by reception Colors are subdued tones of blue-1-1

1. Bodily Injury Coverage

What it covers: If a client slips on a wet floor, trips over a cord, or burns themselves on a hot towel warmer while on your premises, general liability insurance can cover their medical expenses, legal claims, and any settlements.

Why it’s essential for medspas: Clients are regularly walking in and out, disrobing, moving between treatment areas, and sometimes recovering from mildly invasive procedures. These factors increase the chance of slip-and-fall accidents or post-treatment disorientation. Injuries don't have to be severe to result in a lawsuit, and settlements—even for minor incidents—can be costly. 

2. Property Damage to Others

What it covers: Accidental damage to a client’s personal property—for example, staining a handbag with a topical product or damaging their clothing during treatment.

Why it’s essential: Medspas handle oils, gels, masks, and topical chemicals. Property damage claims are common and can escalate if luxury items are involved. This coverage protects your business from having to pay out-of-pocket for replacements. 

3. Personal and Advertising Injury

What it covers: Claims of libel, slander, copyright infringement, or deceptive advertising. For example, if a competitor accuses you of false claims about weight loss services or using unauthorized before-and-after photos.

Why it’s essential: Marketing is a key driver in the medspa industry. A poorly worded ad, a negative review response, or an overly optimistic treatment claim could lead to legal action. This policy protects against reputational harm and costly litigation.

4. Product Liability

What it covers: Injuries or reactions caused by products you apply during treatments or sell over the counter—like skincare lines, serums, peels, supplements, or injectables.

Why it’s essential for medspas: Many services involve the application or sale of products that interact with a client’s skin or body. A facial serum that causes a rash or a collagen supplement that triggers an allergic reaction could lead to liability claims, even if you didn’t manufacture the product.

5. Tenant Legal Liability (if renting your space)

What it covers: Damage caused to a leased property—for example, fire or water damage from your treatment rooms, broken plumbing from an IV station, or laser room equipment overheating.

Why it’s essential: Most landlords require this coverage. Medspas use electrical equipment and water in close proximity—making damage to the building or neighboring suites more likely than in other types of businesses.

medical personnel administering an IV to a patient in a medspa

Medspa Personnel need Professional Liability Insurance

General liability only protects against non-treatment-related incidents. Once a treatment begins, you enter the domain of professional liability, also known as medical malpractice insurance.

Here’s why it’s non-negotiable for medspa staff:

1. Licensed Medical Professionals (NPs, PAs, RNs, etc.)

What’s at stake:
They administer injectables, IV drips, laser treatments, microneedling, and medical weight loss therapies. Each of these involves a degree of medical judgment, which can lead to complications—even when protocols are followed.

Why they need coverage:
If a client claims a treatment resulted in disfigurement, infection, or pain, the provider could be sued directly.

Professional liability insurance pays for:

  • Legal defense and court costs
  • Settlements or judgments
  • Disciplinary board actions
  • Claims of error, omission, or negligence

Even the most experienced practitioner can make a mistake—or be accused of one.

2. Aestheticians Performing Advanced Services

What’s at stake:
Aestheticians using lasers, peels, or microneedling tools may cross into the realm of medical aesthetics, depending on state regulations.

Why they need coverage:
They may not be medical license holders, but clients can still allege harm, poor outcomes, or inappropriate treatment. Standalone or shared policies for aestheticians performing advanced procedures are critical.

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How much does Insurance for Medspas Cost?

Professional Liability (Malpractice) – Estimated Ranges

Coverage for medspas is written at the facility level and typically extends to all employees working within their licensed scope of practice. Premiums vary widely depending on the services offered and the mix of providers on staff:

  • Small medspas offering only low-risk services (facials, light peels, massage): $3,000 – $7,500 per year.
  • Mid-sized medspas with injectables and laser procedures, employing nurse injectors or aestheticians under physician oversight: $7,500 – $20,000 per year.
  • Large or multi-location medspas offering higher-risk services such as regenerative therapies, weight-loss injections, or invasive body contouring: $20,000 – $50,000+ per year.

Important notes on how coverage applies:

  • The medspa entity policy typically covers employees such as registered nurses (RNs), licensed aestheticians, and support staff.
  • A Medical Director who provides oversight is often required to maintain a separate Professional Liability policy, especially if they are an independent contractor rather than a direct employee.
  • Independent contractors (for example, nurse practitioners who rent space or bill separately) may also need their own policies.
  • Premiums rise as the number of providers increases and as more invasive or higher-risk procedures are introduced.

General Liability (GL) – Estimated Ranges:

  • Small spa-like facility: $1,000 – $3,000 per year.
  • Mid-sized medspa: $3,000 – $6,000 per year.
  • Large or multi-location center: $6,000 – $12,000+ per year.

General Liability protects against non-medical risks such as slip-and-fall injuries in the lobby, accidents at off-site events, or claims of advertising injury. Costs depend on the size of the facility, the number of visitors, and whether additional protections such as abuse/molestation or cyber liability endorsements are added.

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The Impact of High-Risk Procedures on Medspa Premiums

While most medspa services can be insured, certain procedures draw heavy scrutiny from carriers, leading to premium increases or outright exclusions.

Procedure Category Examples Why It’s Higher Risk Insurance Impact
Injectables Botox, dermal fillers Frequent claims for asymmetry, allergic reactions, or vascular occlusion 20–30% premium increase; denial possible if staff are unqualified
Laser & Energy-Based Treatments Laser hair removal, skin resurfacing, IPL Burns, pigmentation issues, and eye injuries if not performed correctly Up to 50% premium increase; some carriers require endorsements
Regenerative & Biologic Therapies PRP injections, stem cell therapy Experimental nature; FDA scrutiny; infection or inefficacy claims Often excluded; premiums can double if offered
Hormone & Weight Loss Therapies Hormone replacement, semaglutide injections Cardiovascular side effects, dosing errors 30%+ increase; refusal if not under physician oversight
Invasive Body Contouring Butt lifts with fillers, non-surgical fat reduction Frequent complications; often off-label or experimental Coverage often refused; six-figure lawsuit exposure
Anti-Aging & Skin Procedures Chemical peels, microneedling with RF Complications from deeper peels or combined treatments Moderate premium increases; strong consent documentation required

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Compounded Weight-Loss Drugs: What Every Medspa Should Know

With rising demand for GLP-1 medications like Ozempic and Mounjaro, some medspas are turning to compounded or generic versions to cut costs. But using non-FDA-approved compounds for weight loss can put your business at serious risk. Many insurance policies specifically exclude coverage for compounded medications—and one mistake could leave you without protection when you need it most.

If your medspa is offering weight-loss injections, make sure your coverage isn’t at risk. Here's what you need to know:

  • 🧪 Compounded GLP-1s are not FDA-approved and often contain unverified chemical forms like semaglutide sodium or acetate.
  • ⚖️ Use of non-approved drugs may void your insurance—including malpractice and general liability policies.
  • 🚨 The FDA has banned compounded versions of these drugs unless there is a verified shortage.
  • 🩺 Patients have reported overdoses, hospitalizations, and adverse reactions from compounded formulations.
  • ✅ We recommend sticking with FDA-approved medications only and disclosing all treatments to your broker.

Why Medical Directors Also Need Their Own Malpractice Coverage

Even if they don’t perform procedures directly, medical directors are legally responsible for the oversight of medspa treatments and staff.

Here's why their exposure is unique—and why relying on the medspa’s coverage isn’t enough.

Medical Director Responsibilities:

  • Approving and supervising treatment protocols
  • Delegating procedures to qualified staff
  • Ensuring compliance with state laws and scope-of-practice regulations
  • Often remotely overseeing treatments they do not directly perform

The medical director of a medspa stands proudly in her medical spa-1

Why Standalone Professional Liability is Required:

  • Named in lawsuits: Medical directors are often named in malpractice claims, even when the alleged harm came from a staff member.
  • Not always covered by the medspa’s policy: Some medspas mistakenly assume that naming the medical director on the facility’s policy provides full protection. This is often not the case.
  • Licensure risk: A board complaint or disciplinary action could threaten a medical director’s license. Individual coverage includes defense costs for such actions.

A medical director’s liability is supervisory and administrative—but no less significant. A dedicated malpractice policy ensures their license and reputation are independently protected, especially if they work with multiple medspas or operate remotely.

Other types of Insurance Medical Spas may need

 
General Liability Insurance

General Liability Insurance

General Liability covers medical expenses and attorney fees which result from bodily injuries and property damage that your facility or organization could be legally responsible for.
 
 
Professional Liability Insurance

Professional Liability Insurance

Also known as malpractice insurance, this  protects facilities against claims related to malpractice, negligence, or injury resulting from resident care. Staff members will typically be covered by professional liability insurance.
 
 
sexual-molestation

Sexual Abuse and Molestation Insurance

Provides coverage for your medical spa against claims arising from alleged sexual misconduct or molestation by an employee or other representative of your organization. Essential for the senior living industry.
 
 
Commercial Property Insurance

Commercial Property Insurance

This protects your facility against damage or loss to your buildings, equipment, and other property, which can happen as the result of various risks such as fire, theft, or vandalism.
 
 
workers compensation insurance

Workers Compensation Insurance

Workers Compensation Insurance is usually mandated by law. It protects medical spas and employees in case of work-related injuries or illnesses.
 
 
Cyber Liability Insurance

Cyber Liability Insurance

Covers you against financial losses associated with data breaches, cyber attacks, and other cyber incidents. Insurers will usually conduct rigorous testing of your online system to fix vulnerabilities as part of this policy.
 

Why Work With Homewood

Senior Broker Ralph Schiller knows the challenges facing medspas first hand — his wife owns a thriving medspa. He understands the real-world risks of injectables, laser treatments, and weight-loss therapies, and how a single claim can threaten years of hard work.

By working with Homewood, you benefit from:
• Direct insight into the daily realities of operating a medspa.
• Access to nearly 100 insurance carriers, including those that specialize in aesthetic medicine.
• Guidance on structuring coverage for both your facility and individual providers, including Medical Directors.
• Options to bundle Professional Liability, General Liability, and Cyber Liability into one policy.
• Advocacy during claims — from patient injury to regulatory investigations.

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Ralph Schiller

Ralph Schiller

Ralph specializes in sourcing the most suitable insurance for Medspas at the best price. You can call him or fill out the form and he will get your message directly.