What Types of Insurance Does a Massage Therapy Business Need?

Massage has many proven benefits for overall physical health, including relaxation and rehabilitation. Overall, massage therapy businesses have low risks, however, they still encounter hazards that can threaten their financial well-being. So, a massage therapy business should protect itself from losses and liabilities with insurance policies.

Related: Guide to starting a massage therapy business

What Are Some Risks for a Massage Therapy Business?

Despite the low risks, massage therapy businesses come across hazards. For example, some of the risks for a massage therapy business include the following:

• Customer injuries
• Employee injuries
• Fire damage
• Car accidents

Customer Injuries

On-site customer injuries are a hazard for massage therapy businesses. Depending on the building size and the number of daily patrons, the risk can range from slight to substantial. The most common hazard is injury from slips, trips, and falls. For example, customers may trip and fall in low-light or cluttered areas. Wet bathrooms and steam rooms are other areas with an increased risk of slips and falls.

Aside from slips and trips, other customer injuries can range from claims of sexual misconduct to injury from heating elements used during massage sessions. Heat elements such as steamed towels, heat lights, and hot rocks can cause burns or scalds.

Additional injuries and hazards include

• Infections from unclean sheets, towels, and shower and locker areas
• Overheating in steam rooms or saunas
• Falling or fainting from dizziness after a massage

Employee Injuries

Employees encounter several injury hazards while at work. Like customer injury hazards, employees, too, are at risk of injury from slips, trips, and falls. For instance, small and dark massage rooms can be challenging to navigate and may lead to tripping.

In addition, employees are at risk of electrical shocks from malfunctioning equipment and burn or scald injuries from hot equipment. For instance, a fresh steamed towel is hot from the heating element and may cause harm.

Massage therapists put a lot of strain on their bodies. For example, back and muscle strains are a concern for massage therapists as they are often required to lift or move persons and objects (i.e., adjusting massage tables). Also, massage therapists may experience injury to their hands, wrists, and shoulders from the repetitive motions required in continuous massage work. 

Massage therapists offering in-home sessions have additional risks. For example, therapists working one-on-one with clients are at risk of assault or harassment. Car accident injuries are another hazard as therapists are frequently on the road between customer locations. Additionally, a client’s home also has its own set of dangers. For example, broken-down porches, unstable stairways, slippery driveways, and animals are some hazards that employees may encounter at a client’s home.

Fire Damage

Fire puts the massage business’s premises in danger of extensive loss. Fire is hazardous to the safety of employees and patrons and risks severe damage to the business’s structure and property. Further, extensive damage can result in business closures, risking a loss of income.

Common sources of fire for massage therapy businesses include

• Overheated saunas
• Candles
• Malfunctioning equipment
• Frayed, old, or sparking wiring
• Heating equipment (i.e., towel steamers and hot water kettles)
• Smoking

Car Accidents

Car accidents are a risk for massage therapists traveling between off-site locations. An at-fault car accident can result in expensive liability claims, such as bodily injuries or property damage. Further, car accidents put the business’s vehicles at risk of damage and breakdown, threatening an interruption in business and income loss.

Some of the more common reasons that car accidents occur include

• Driving in unfamiliar areas
• Driver fatigue
• Distracted driving
• Inclement weather
• Poor visibility
• Traffic

What Types of Insurance Policies Should a Massage Therapy Business Consider?

Although risks expose massage therapy businesses to losses and liabilities, insurance policies protect the business from risks. Some of the key insurance policies that a massage therapy business should consider include the following:

• General liability insurance
• Workers’ compensation insurance
• Commercial property insurance
• Commercial auto insurance

General Liability Insurance

A general liability and malpractice insurance policy covers claims of bodily injury and property damage that occur on-site or due to the actions of the business. For example, a general liability policy would cover the bodily injury claim for a customer who injured themselves falling on a slick floor or a massage cream that causes an allergic reaction. 

Many claim-related expenses are included in a general liability policy, such as

• Third-party medical bills
• Third-party property damage repairs
• Legal defense costs
• Settlements

A massage therapy business may also want to consider adding a professional liability insurance policy to cover claims of negligence or errors made by a massage therapist. For example, a massage therapist who fails to consider the customer’s health before the massage and consequently causes injury may be liable for the injuries. 

Since there is some overlapping risk between a general liability policy and a professional liability policy, having one insurance company cover both or having the same coverage limits on each policy is best.

Workers’ Compensation Insurance

A workers’ compensation insurance policy covers claims for employees who are injured at work. Following an accident, an employee may accumulate many bills (i.e., medical bills) and injury-related expenses, such as physical therapy costs and a loss of income while they cannot work.

As a result, the business needs insurance to cover the employee’s expenses to protect them from having to cover the costs themselves. A workers’ compensation insurance policy includes insurance coverage for

• Medical expenses
• Lost wages
• Legal fees
• Ongoing rehabilitation care
• Disability income
• Funeral expenses

Although businesses without employees won’t use this type of coverage, a business with employees benefits from it. Workers’ compensation protects the employees from expensive medical bills and the business from lawsuits. 

Commercial Property Insurance

A property insurance policy covers structures and business property from various hazards that cause physical damage. Some of the most common perils covered on a property insurance policy include

• Fire
• Wind or hail
• Vandalism
• Theft
• Explosions
• Falling objects
• Water damage

Structures are typically covered for their rebuilding cost, determined by their size, condition, and customization. Structure coverage includes anything permanently affixed to the structure (i.e., cabinets and built-in shelving), whereas all other items are covered with business property.

Property insurance for business property covers all equipment, furniture, supplies, and inventory. The business property is usually covered for its replacement cost or actual cash value. Many property insurance policies include a deductible and sometimes have a separate deductible for specific perils, like wind or hail damage.

Commercial Auto Insurance

The main coverages in a commercial automobile insurance policy include liability coverage and physical damage coverage. However, many auto insurance policies also cover medical payments and uninsured motorist coverage. 

Liability insurance protects the business from liability claims of bodily injury or property damage from at-fault accidents. For example, the policy would cover an accident caused by an employee at fault in a fender bender while driving a company vehicle.

Physical damage insurance covers business-owned vehicles for damage caused by collisions or non-collision-related events. The collision coverage insures vehicles for damage from at-fault collisions, whether multi-car or single-car accidents (such as backing into an object).

Conversely, comprehensive coverage covers non-collision-related damage, which includes perils such as

• Fire
• Falling objects
• Wind or hail
• Vandalism and theft
• Glass breakage

The other two coverages, medical payments and uninsured motorists, are also helpful coverages on an auto policy. Medical payments cover driver injuries and the injuries of other passengers in the vehicle, regardless of fault. Uninsured motorist coverage pays for bodily injury claims and is for incidents of a hit-and-run or where the other at-fault driver does not have coverage.