Wellness & Spa Liability Insurance: What Your Policy Might Not Cover

The Wellness Industry Liability Landscape

Wellness centers, med spas, float therapy studios, cryotherapy facilities—these businesses are booming. But they operate in a gray area between traditional spas and medical facilities, which creates unique insurance challenges.

What Your General Liability Usually Covers

Standard general liability insurance for wellness businesses typically covers:

• Slip and fall accidents on your premises
• Property damage (client breaks a piece of equipment)
• Basic negligence claims

What it often DOESN'T cover:

• Treatment-related injuries (burns from infrared sauna, cold injuries from cryotherapy)
• Allergic reactions to products
• Injuries from massage or bodywork
• Client medical expenses from covered accidents

The "Professional Liability" Requirement

If your wellness center offers any services performed by licensed practitioners (massage therapists, estheticians, acupuncturists), you need professional liability insurance (also called malpractice insurance).

This covers: allegations of professional negligence, treatment errors, failure to obtain informed consent, and claims that a treatment caused harm.

Cost: $800-$2,500 per year depending on services offered.

The Cryotherapy and Float Therapy Challenge

Newer wellness modalities like cryotherapy, float therapy, and infrared saunas can be hard to insure. Many traditional insurers consider them "too risky" or charge premium rates.

If you offer these services:

1. Require signed informed consent forms that explain risks
2. Have clear contraindication screening (medical conditions that exclude someone)
3. Document all safety protocols
4. Consider specialized insurance providers who understand these modalities

The Client Injury Scenario

Here's a common scenario: A client faints during a cryotherapy session, falls, and hits their head. They need ER evaluation and get a $4,500 medical bill.

Your general liability insurance will defend you if they sue. But it won't pay their medical bills unless they prove you were negligent—which means a lengthy legal battle even if you did everything right.

The smarter approach: offer clients automatic accident protection that covers their medical expenses if they get injured during a session. No lawsuit needed, no bad review, no lost client.

Waiver Mistakes to Avoid

Most wellness centers use liability waivers. Good. But many make these mistakes:

• Generic waivers not specific to your services
• Waiver language that courts have rejected in your state
• No documentation that client read and understood the waiver
• Failing to update waivers when you add new services

Have a lawyer who specializes in wellness/spa law review your waivers annually.

The Protection Package Approach

Forward-thinking wellness centers bundle client protection into membership or session pricing:

• Monthly members: protection included in membership ($5/month per member)
• Drop-in clients: protection included in session price

Benefits: clients feel taken care of, you avoid liability disputes, you earn commission on the protection, and your insurance claims history stays clean (fewer claims = lower premiums).

Action Steps

1. Review your current insurance policies—know exactly what's covered
2. If you have licensed practitioners, ensure you have professional liability coverage
3. Implement robust informed consent processes for high-risk modalities
4. Consider adding client accident protection to your service offerings
5. Have a lawyer review your waivers and intake forms