You can insure virutally anything. Celebrities are insuring their body parts, and food critics insure their taste buds. Even cigar aficionados have been rumored to take out policies on rare collections and file claims due to “loss by fire.”
When it comes to your own business, it is worth it to have some level of insurance coverage – for financial purposes and peace of mind.
While general policies exist for businesses of all shapes and sizes, a laser tattoo removal clinic is a unique kind of business and, like other specialty operations, may require more specifically written terms to cover its niche operations.
With liability, malpractice, and many more types of policies to choose from, it’s easy to wonder what is the right level of coverage for you.
Since Astanza specializes in tattoo removal and provides extensive support to practices getting started, we know what works for businesses in this specific field.
This guide explores which type of insurance policies are the most popular – hopefully it can help you in determining what insurance policy is ideal for your tattoo removal clinic business.
What Parts of a Laser Clinic Need Coverage?
Businesses typically own many assets – furniture, computers, supplies, etc. Laser tattoo removal clinics also have Q-switched lasers, which are capital equipment that deserves to be protected. Just as you may have homeowner’s or renter’s insurance to protect your valuables, you will want an insurance policy to protect the assets of your business from theft or damage.
Also, simply by way of having employees and customers, there are many risks and liabilities that every business owner faces.
The laser tattoo removal procedure itself presents certain risks as well. While most lasers for tattoo removal are designed with exceptional safety features and laser technicians are trained in safety and treatment protocols, user error can happen and a troublesome patient every now and then is inevitable.
To safeguard your new business against both minor incidences and larger accidents, there are several types of insurance available for the tattoo removal clinic owner.
Types of Tattoo Removal Insurance to Consider
Just like various levels of insurance make sense for certain assets, what is right for someone else may not be right for you.
The most recommended insurance for any business – laser tattoo removal clinics included – is general liability.
General Liability
Just as states’ require car owners to be insured with liability insurance, it is wise – and typically required – to have general liability coverage for a laser tattoo removal business.
- Called Business Liability, Commercial Liability, and other, like combinations of those terms.
- Protects against “slips and falls”, damage or loss to property, damage caused to your building.
- Riders can be added to include “business interruption” and things like “loss of valuable records”.
- A liability insurance policy should have special inclusion terms for the capital equipment that is probably your most expensive business asset.
Cost: $750-$1,500 per year
This insurance can be underwritten by any regular insurance provider – just make sure the plan is comprehensive and written to cover your needs.
Malpractice
Malpractice insurance for laser tattoo removal clinics is professional coverage for the individuals performing the procedure. While it is important that laser tattoo removal providers are properly trained on their equipment, laser tattoo removal is a relatively low-risk and low-complication procedure compared to other aesthetic treatments.
Burns, scars, permanent side effects, and infection are extremely rare. When practitioners take the proper precautions and use correct protocols for their device, patients are happy with the results. Practitioners also typically protect themselves with a patient consent form before providing treatment.
Even though we haven’t seen any litigation in the tattoo removal field for practitioners that use the right laser for the procedure, follow correct protocols, and don’t falsely advertise their services, we still recommend obtaining malpractice insurance.
While not required to perform laser tattoo removal, having malpractice insurance is beneficial for many reasons:
- Also called Professional Laser Insurance, Laser Tattoo Removal Insurance, etc.
- Protects the business from personnel negligence and “errors and omissions” by the laser operator.
- This type of policy would cover a client’s new Italian handbag if it was somehow zapped by the laser.
Cost: $3,000-$5,000 per year
For those that want malpractice insurance, it is possible to “bundle” it with a business liability insurance plan for significant yearly savings. Astanza knows of several insurance providers that can write these “bundle” policies for you – just reach out to us and we’ll connect you with a few different options.
Other Types
Beyond the most logical type of insurance policy – general liability – and the added peace-of-mind of laser tattoo removal malpractice insurance, a few other coverage options exists, but have rarely been used in the aesthetics field.
- Employment Practices Liability to protect against legal action if sued by an employee or former employee.
- Worker’s Compensation provides coverage to employees who may be injured on the job.
- Property Insurance for personal property at the place of business. Some elements of this are included in a general liability policy.
Preparing for Your Insurance Application
Every insurance provider has a unique application and underwriting process, but many initial questions will be the same:
- How is the business legally operated?
- Where is the business located?
- What are the primary service(s) or product(s)?
- What is the expected number of procedures annually?
- How much are the assets of the business worth?
The vast majority of questions are simple and can be answered from a business plan.
More intricate details about the laser technology or procedure itself may need to be answered with consultation from your laser manufacturer – Astanza is happy to help clients and discuss details with insurers.
During the application process you may be asked about your medical director and how the physician is connected to your facility. The regulations for physician supervision vary by state. Your Astanza representative may be able to assist you with finding out your state’s regulations for tattoo removal.
Certain insurance companies may need to see your tattoo removal training certification as well.
It is most efficient to have your medical director secured, laser equipment purchased, and staff hired before moving forward with an insurance policy, as those are three critical factors that insurance companies will want to examine.
With many types of insurance available for a laser tattoo removal clinic, it is important to do your due diligence, assess your business assets, and determine the level of protection that feels right for you.
Talk to your Astanza representative to discuss your business assets, risks, and how much protection you need. We work with a variety of insurance providers who understand the laser aesthetics industry and can create policies to meet your needs.
Remember, general liability insurance is the primary policy needed for any business, and one that can be tailored to fit the needs of your laser clinic.
If you are in the very early stages of building your tattoo removal business, consider reading our How to Start a Tattoo Removal Business blog, which highlights important steps to setting your tattoo removal goals into gear.
