E&O: Errors & Omissions

Medispas

Opportunities

The MediSpa, or Medical Spa, is a new and growing trend in the spa business, and offers agents with knowledge of the medical malpractice insurance business an excellent opportunity for premium. The concept behind MediSpas is the integration of medical practices with traditional spa treatments. Because of this integration of medicine and therapeutics, which adds the increased exposure of the medical treatments to traditional spa exposures, MediSpas need specialized medical professional liability coverage.

A MediSpa provides conventional medical treatments complimentary to more traditional spa therapies in a facility that is supervised by a medical doctor. There may also be other medical technicians who will have specific medical training. There are currently over 7,000 spas in the US, and the MediSpa is a small segment, but is the fastest growing in the spa industry.

MediSpa accounts are written by a few specialty insurers with expertise in medial services and medical malpractice insurance. Mercator Risk Services can provide assistance for your MediSpa accounts with professional liability insurance. We also provide professional liability insurance for a range of medical service accounts. Click here for more information on medical services and here for a non-exhaustive list of medical services examples.

MediSpas

There are wide variations in the approaches used by different MediSpas. Some combine the latest cutting-edge medical techniques from the West with more traditional and relaxing Eastern practices. Some are much more focused on a particular population segment. Nearly all have a physical setting very different from a typical physician.s office.

The development of MediSpas has come from both physicians, with the goal of expanding their business, and from traditional spas looking to diversifying their offerings. Plastic surgery is one medical area that has aligned itself with spas.

Like the MediSpa industry itself, regulation and industry guidelines are not consistent. Professional guidelines allow that under certain circumstances, and in accordance with state regulations, physicians may designate some cosmetic treatment procedures to certified or licensed non-physician personnel. Industry guidelines generally require the physician to be on site and be immediately available. State regulation is not consistent on the role the physician must play. Some states allow non-physicians to perform certain procedures, some have no current regulations, and some require a physician to perform the procedures. Due to increasing concern about non-physician performance of cosmetic procedures state regulation seems to be increasing.

The specific treatments offered by MediSpas vary significantly. The MediSpa segment can be divided into a few broad categories.

Check-up spas focus on the affluent and health-oriented segment interested in preventive strategies, and offer complete physicals with "check-up consultations". A client can obtain a thorough and customized physical examination from a battery of specialized health professionals in one facility. In addition, they will obtain customized recommendations regarding changes in life styles, diet and programmed exercises. Hydrotherapy, massages, acupuncture, and yoga are additional services that may be provided.

Esthetic MediSpas are "day spas" or chains focusing on esthetic treatments. Some esthetic spas are affiliated with a resort or destination spa. One advantage of the local chains is the accessibility and quick service. Services vary, but can include esthetic oriented treatments such as laser abrasion, Botox or Collagen injections, and permanent make-up.

Plastic Surgery Medi-Spas are often closely aligned with plastic surgery groups. They typically focus on pre- and post-surgery treatments such as facial lymphatic drainage, laser hair removal and soft tissue injections. Use of hyperbaric chambers to assist with healing is another service that might be provided.

Dermatology Spas are often aligned with dermatologists seeking to supplement their business through a spa setting. Procedures might include facial and body treatments such as chemical peels, injections, laser hair removal and massage.

Specialty Clinics are a broad segment of small, highly specialized clinics. The services provided are typically very focused on one of a broad range of specialized medical services. One example is laser clinics providing laser hair removal services.

Some MediSpas are adding even more advanced techniques such as genetic testing, skin diagnostics and advanced laser treatments.

Here are some example accounts:

There are also a variety of related professional organizations and professionals that are aligned or affiliated with MediSpas. These include individual medical professionals, specialty health consultants, medical equipment manufacturers and service providers. One example is a testing facility providing services to MediSpas and their patients.

MediSpas - Medical Malpractice or Professional Liability Insurance

Medical Professional Liability coverage is a critical coverage for a MediSpa and the medical and other professionals providing the services. Medical Professional Liability responds to allegations that the services rendered or not rendered by a spa professional resulted in some injury to a patient. (Click here for Claim Examples.)

Medical malpractice insurance is professional liability insurance, sometimes called errors and omissions or E&O insurance, for medical professionals or medical organizations. This coverage is available from a number of specialty lines insurers. Coverage and pricing varies greatly depending upon the type of professional, the specific medical services provided and location.

Coverage is typically provided on a claims-made basis. Limits and deductibles vary with the size and type of insured organization, but generally start at $1.0 million.

Underwriting MediSpa medical professional liability can be difficult due to the range of services offered, the varying degree of participation of the medical professionals and the varying state requirements. Some medical professionals may be covered separately, particularly physicians, and some may not be. Adding a physician's own medical coverage to the MediSpa policy will significantly increase the premium.

While Mercator Risk Services provides a number of markets writing MediSpas, not all MediSpas are the same and not all underwriters will take the same approach. A thorough submission is critical in obtaining a competitive and complete proposal.

Mercator Risk Services provides medical malpractice for all types of unusual or hard to place medical accounts, including MediSpas. Mercator also places coverage for a variety of healthcare accounts including:

Mercator Risk Services can provide additional and necessary coverages to you healthcare accounts, including:

Please let us know your client's needs and we will provide you with information and assistance with your particular situation or account, and professional liability coverage.

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