Company insurance is intended to safeguard the financial assets of a business owner and is a necessary investment for a massage therapist.
This article will discuss the primary insurance coverage for massage therapists, general liability insurance, as well as additional policies that are appropriate for this industry.
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Massage Therapists Need General Liability Insurance
Every firm, regardless of sector, has risks that should be insured. General liability insurance is the most frequent and comprehensive form of coverage that company owners purchase.
General liability insurance covers the following risks:
Physical harm
Damage to property
Medical expenses
Legal defence and decision
Personal and commercial harm
While general liability insurance is not legally needed for companies, operating without it is exceedingly dangerous. If your company is sued, you might face costs in the hundreds of thousands of dollars (or more). The only way to avoid this sort of catastrophe from destroying your organisation is to have an adequate general liability insurance coverage in place to assist pay for these losses.
Situations That A Massage Therapist’s General Liability Insurance May Cover
Example 1: Over the course of many sessions, one of your masseuses fails to correctly administer a lower back massaging method to her senior male client. This actually aggravates her client’s back ache, a condition for which she must seek medical treatment on a regular basis. The customer sues your company over unpaid medical costs and hospital expenses. General liability insurance might most likely assist in covering unpaid medical expenditures or any settlement made.
Example 2: A female customer complains that her male therapist was disrespectful and unprofessional during their massage session. She claims that his actions have caused her substantial mental suffering, affecting her career and harming her family. If found accountable, your company’s general liability insurance would most likely cover whatever the court ordered you to pay or any settlement negotiated.
Example 3: One of your customers is allergic to your usual rubbing lotion. He has a significant rash and is having difficulties breathing. Although an ambulance arrives in time to assist, the customer takes your massage company to court. If found accountable, your organisation would most likely be covered by general liability insurance for a settlement or court-estimated harm.
Of course, this is not an entire list of risks covered by a general liability insurance policy, and certain situations may result in a specific peril not being covered. To minimise coverage gaps, it’s always better to speak with your agent about the terms of your policy.
General Liability Insurance Cost
The typical massage therapist in the United States pays between $350 and $750 per year for $1 million in general liability insurance.
The cost of your coverage will be determined by a number of variables. Among them are your:
Location
Deductible
Employees’ number
Per-occurrence restriction
The overall aggregate limit
You may be able to get general liability insurance at a lower cost if you buy it as part of a business owner’s policy (BOP) rather than as a separate policy. A business interruption policy (BOP) is a more complete option that covers numerous types of coverage, such as business interruption and property insurance.
Other Types of Coverage Required by Massage Therapists
While general liability insurance is the most crucial, there are various different types of coverage to be aware of. Other forms of insurance that all massage therapists should have are as follows:
Insurance for Commercial Property
This policy is required for the great majority of companies, especially those that depend on inventory, equipment, or owned real estate to operate. Disasters may hit quickly, forcing frightened firms to devise a recovery strategy tailored to the nature of the loss.
Commercial property insurance is one component of a disaster recovery strategy that organisations may use. This coverage may cover damage from fires and severe weather, saving your organisation a lot of money when it experiences catastrophic losses. Don’t expose your company to the risk of losing its owned offices, tables, office computer equipment, and other critical commercial property.
Insurance for Professional Liability
Massage therapy companies provide a service that clients rely on for better health, relaxation, and even professional performance. If customers leave sessions with little alleviation or with increased physiological pain, your clinic may be sued for a refund of its service costs. Failure to execute over time may expose your company to disgruntled consumers who have spent their time and money in what they perceive to be a waste. Maintain coverage for your massage therapy firm in the event that it is judged accountable for failing to perform services as promised.
Types of Insurance That Some Massage Therapists May Require
In addition to the insurance listed above, your massage therapist business may need a few more forms of coverage based on particular features of your operations. Some of them may not apply to you, so be sure to ask your agent whether policies are appropriate for your company.
Insurance for Workers’ Compensation
The larger your treatment practise, the more assistance you will most likely need. If your company wants to recruit part-time or full-time employees, it is required by law to provide workers’ compensation insurance. This coverage protects your employees in the case of a working accident that results in injury or death.
Additional Security Measures for Your Company
Although investing in company insurance is simple (and necessary), it should not be your first line of defence. Yes, insurance will reimburse your company for cash losses incurred as a result of an occurrence, but it is much preferable to avoid losses altogether.
With this in mind, here are a few steps you can take to better secure your company:
Make use of legally binding contracts and other business agreements. (We provide free templates for several of the most often used legal forms.)
Set up a limited liability company (LLC) or corporation to protect your personal assets. (Visit our step-by-step guides to learn how to form an LLC or corporation in your state.)
Keep your company licences up to date.
Streamline the internal procedures of your company. This will eliminate unneeded variables from routine activities and establish a secure, consistent environment in which to do business.
If your company is an LLC, you should check into LLC insurance.