KNOW YOUR POLICY
Key Terms: Liability Risks for Medspas
Medical spas continue to expand the range of services they offer, from aesthetic procedures to weight loss, IV therapies, and alternative, regenerative, or off-label treatments
As offerings evolve, coverage may be impacted by how services are delivered, who performs them, and whether treatments—including non-FDA-approved or compounded products—are disclosed and contemplated within the policy Policies may include exclusions, limitations, or require specialized coverage to address these exposures
Claims-Made vs. Occurrence Policy Form
Determines whether coverage is triggered based on when a claim is made or when the incident occurred
does not apply to claims arising
Medical Directors and Other Professionals as Insureds
Depending on policy terms, insured status may be extended to medical directors, physicians, independent contractors, students, volunteers, non-physician employed staff, and licensed professionals such as nurse practitioners and physician assistants, but only if those individuals are specifically included in the policy
Non-FDA-Approved or Compounded Drug Exclusions
May exclude claims involving research-grade compounds, off-label treatments, or medications not authorized for patient use
Personal and Advertising Injury Coverage
Can respond to claims alleging misleading advertising or misrepresentation, subject to policy wording and exclusions
Product Liability Exposure
Liability arising from the use, administration, or distribution of products such as biologics, compounded medications, or regenerative therapies. These exposures may not be fully addressed under Healthcare Liability Insurance and may require separate Product Liability coverage depending on policy structure.
Scope-of-Practice Exclusions
May limit or eliminate coverage when services are performed outside licensing requirements or without required supervision
SAM Insurance
Provides coverage for sexual abuse and molestation (SAM) allegations, which are typically excluded from standard liability policies
SAM Sublimit
A sublimit that may apply to sexual or physical abuse claims, meaning coverage may be capped below the overall policy limit.
For additional insights on Healthcare Liability Insurance, visit burnsandwilcox.com/specialties/healthcare