Insurance Terms for Medical Spas

Use this handy primer to get familiar with the terms you’ll need to know for insuring your medical spa.

Agent—an insurance intermediary who represents the seller of insurance, typically an insurance company.

Broker—an insurance intermediary who typically represents the buyer of an insurance policy, usually the insurance policyholder.

Certificate of insurance—a document issued by an insurance company certifying that an insurance policy has been purchased. It usually also sets forth a summary of the most important insurance policy contract provisions. However, it is not an insurance policy or a substitute for one.

General liability coverage—insurance protection that covers you from claims by clients and customers who claim they suffered bodily injury or property damage due to your alleged negligence. Typical claims include slips, trips and falls on your premises.

Medical malpractice coverage—insurance that covers you from claims by clients or customers alleging bodily injury due to a medical professional deviating from the relevant standard of care in a medical procedure.

Non-admitted paper—term used to refer to insurance policies underwritten by insurance companies who are not licensed to do business in a particular state. Admitted carriers are licensed to do business in your state and are subject to the rules, regulations and supervision of your state’s insurance department. If you have a problem or complaint, you can write to this insurance department, and they will likely intervene. Companies’ policy forms have also been approved or are on file with the same insurance department. Non-admitted companies have more flexibility and are more willing to be creative in their underwriting. They will frequently write what are perceived to be higher risk accounts.

Quote—a price proposal from an insurance company for a certain amount of insurance coverage.