Property exposures depend on the services provided. If the spa is primarily a physician’s office, property will be limited to medical equipment used to perform procedures and standard office furnishings. The equipment must be maintained in a sterile condition and is therefore highly susceptible to damage. If the spa is primarily for relaxation and cosmetology, providing only minor health care services, property exposures include wiring from electrical equipment, accumulations of hair clippings and any cooking operations conducted. Regardless of the type of operation, all electrical wiring must be up to code and equipment properly maintained. Business income and extra expenses may be a concern if the facility requires special equipment due to the time needed for repair or replacement.

Property of others exposures may be significant if employees or independent contractors supply their own equipment.

Crime exposures are usually minor. Most transactions are completed using credit cards, limiting the opportunity for theft. While guests’ property is normally kept in a safe or locker on premises, it can be stolen by employees or other guests. Employee dishonesty coverage does not apply to independent contractors so their access to money and inventory should be limited.

Inland marine exposures include accounts receivable if the spa bills customers for its services, audio/visual equipment, computers, physicians and surgeons equipment, and valuable papers and records (clients’ records). Physicians and surgeons equipment includes items that doctors may take off site to handle emergencies, and can be extended to include all office furnishings. It is vital that duplicates of all records and programs be kept off site.

Occupiers’ Liability exposures are moderate due to the number of clients at the facility. A high standard of care is required when health care services are provided. Sterile conditions must be maintained, privacy provided and client contact limited to required personnel. Aftercare must also meet the appropriate standard of care for the procedure performed.

Aisles and walkways must be adequate and free of hair clippings and debris. Floor coverings must be in good condition with no frayed or worn carpeting. Floors should have no cracks or holes. Exits must be adequate in number, well marked and with backup exit lighting provided in case of power failure. Tanning beds, massage, and electrolysis services must be conducted properly and controlled in an appropriate manner. Tanning services may require the use of specialty insurance markets because of the relatively unknown loss potential from long-term exposure to radiation and the possibility of contracting cancer and related diseases. If all or most of the professionals providing services at the spa are independent contractors, the insured’s responsibility is similar to a general contractor’s responsibility to its subcontractors. In these cases, injuries to independent contractors are part of the Occupiers’ Liability exposure and are not workers compensation exposures.

Parking lots and sidewalks need to be in good repair with snow and ice removed promptly. They should be level and free of exposure to slip and falls. Security of visitors in parking areas is often deemed the responsibility of the owner or operator of the premises. Factors to consider include exterior lighting, fencing, and any other security measures.

Product liability exposures are for the products sold by the spa to the client for use after leaving the premises, such as shampoos, creams, body lotions, and cosmetics. Some spas supply dietary supplements, vitamins, nutriceuticals and other ingestible items. If the spa sells non-standard, independently produced, or proprietary products, its exposure is that of a manufacturer.

Professional liability exposures are based on the nature and extent of the services provided. Typical minimally invasive health care treatments are Botox treatments, dermal fillers such as Restylane and Juvederm, laser hair removal, liposuction, permanent makeup, microdermabrasion, skin corrections and similar treatments. These are in addition to the professional exposures of estheticians, massage therapists and other licensed individuals working on premises. Needles and other equipment must be sterilized and sanitized to prevent the spread of blood-borne infectious diseases such as hepatitis, HIV and AIDS. If independent subcontractors are used, the applicant should verify that they have separate professional liability coverage.

Automobile exposure is generally limited to hired and Non-owned liability for employees running errands. If spa personnel travel to client locations, the radius of the area driven as well as the age, record, and training of the driver should be checked. Vehicle maintenance should be ongoing and documented.

Workers compensation exposures are based on the services provided and the number of employees. Some spas have mostly independent contractors and very few employees. While the contractual relationships between the spa and the independent contractors determine the workers compensation exposure, regulatory definitions of employee may supersede the contract terms. Minor cuts, scratches and abrasions occur with some frequency and may result in infection. Employees are at risk from possible transmission of disease from a patient. Gloves and masks should be worn at all times when working around any bodily fluids. Eye and skin irritation resulting from chemicals can also cause losses. Strains and sprains may occur as a result of aiding clients. An employee may be injured due to inappropriate activity by a customer.