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The Right Insurance Representative

By: Kevin Quinley
Posted: July 23, 2008, from the August 2008 issue of Skin Inc. magazine.

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Again, do not assume a medical director’s medical malpractice policy will provide adequate coverage for a spa. Typically, medical malpractice policies will not extend coverage to a medical spa, leaving your business unprotected. So obviously, not having the right insurance representative can financially hurt a spa, and one of the chief risks is this kind of an insurance coverage gap.

2. Do I need an insurance broker or an insurance agent?

Be aware of the difference: Brokers represent insurance buyers—in this case, medical spas. Agents represent insurance sellers—usually insurance companies. Agents can be captives of a particular insurance company, and therefore may not be scouring the entire marketplace to get competitive quotes on coverage.

By contrast, an insurance broker can take a coverage need out to a broad network of providers in order to get competing prices. Brokers can tap several markets, whereas agents may tend to push just one insurance option or a more limited number of options.

Please note, in this discussion, the terms agent and broker may be used interchangeably, but it is still vitally important to understand the difference between them.