Spa Insurance: Liability, Cost & Quotes From $11/mo

The United States offers the most promising environment for spa businesses and has a market share of $15.1 billion out of the $68 billion revenue of spas all over the world. However, the pandemic hit spas in the United States hard and the  Global Wellness Institute estimated a 38.6% reduction in the industry’s market growth in 2020. 

A reduction in market growth means challenges are up ahead. And sometimes, getting insured can solve some challenges spas face. Today, let’s talk about spa business insurance policies, their cost, and more.

Also read:

What Insurance Do Spas Need?

Carriers have insurance policies that offer protection from exposures unique to spa businesses. Tailored insurance for spas commonly features the following:

  • Spa liability insurance

  • Business interruption insurance

  • Commercial property insurance

  • Workers' compensation insurance

Spa Liability Insurance

Spa liability insurance is a collective term for insurance policies that protect your spa business against legal and financial liability for the injuries, property damage, or economic loss of third parties. Liability policies commonly available are:

  • General liability insurance

  • Professional liability insurance

  • Public liability insurance

Spa General Liability Insurance

Personal injury or property damage lawsuits a client, delivery man, or visitor files are costly exposures. Slip and fall accidents are the most common mechanism for spa-related personal injuries and property damage. The table below outlines the cost of injuries in spa personal injury lawsuits. 

Type of InjurySettlement Cost
Dislocation $59,000

General liability insurance for spas is the policy that will take care of personal injuries or property damage clients and other third parties experienced due to your spa's business operations.  This insurance provides funds for medical treatment, compensation for pain and suffering, and reimburses the value of a damaged property. 

Optional Coverages in General Liability Insurance

General liability insurance, with its optional coverages added, will provide more protection for businesses. Such optional coverages are:

  • Advertising injury coverage

  • Products and completed operations coverage

  • Rented premises liability coverage

Liability for advertising or reputational harm is a very problematic exposure for your spa business. The cost of wrapping things up without insurance will be hundreds or even millions of dollars.  This is why be smart and add advertising injury coverage to general liability insurance. Advertising injury coverage will cover attorney fees, compensatory payments ordered by the court, and other legal costs should a third-party files a claim against your business for:

  • Slander 

  • Libel

  • False advertising

  • Copyright infringement

Your spa’s completed service might have caused personal injuries or property damage to a client. If a past client decides to file a claim, products and completed operations coverage will cover compensatory payments, attorney fees, and other legal costs. 

Do you rent a commercial space for your spa’s business operations? Rented premises liability coverage is useful if this is the case. Rented premises liability coverage will pay the landlord on your behalf if the rented commercial space incurs damage due to fire.

Related: General liability insurance for makeup artists

Professional Liability Insurance 

Negligence or mistake is another exposure that spas have to think about. Common injuries that either of the two causes are wax burns, hair loss, abrasion or cuts, chemical burns, and infections. The cost for settling these injuries in a negligence lawsuit is in the table below:

Types of InjurySettlement Cost in Negligence Lawsuit
Wax Burns$56,000
Hair loss$300,000
Chemical burns$250,000

Professional liability insurance will take care of the cost associated with negligence lawsuits. This gives the policyholder $1 million up to $2 million. But note that the language of professional liability insurance also provides coverage for claims filed because of:

  • Misrepresentation

  • Violation of good faith and fair dealing

  • Violation of confidentiality

  • Other acts considered errors and omissions

Public Liability Insurance for Spa Business

Public liability insurance works the same way as general liability insurance. It will take care of personal injury claims and property damage claims against your business. However, compared to general liability insurance, public liability insurance is more limited in its scope as you can’t add optional policies to it. In fact, it’s safe to say that general liability insurance is a comprehensive version of public liability insurance. 

Commercial Property Insurance for Spas

A spa has a lot of equipment that can be costly to repair or replace. The table below shows the most common spa equipment and their repair and replacement cost. 

Type of EquipmentReplacement CostRepair Cost
Massage Table$6,000$900
Manicure and pedicure station$950$150
Reclining chair$1,500$200
Scotch hose$1,200$250
Hydrotherapy tub$8,000$1,500
Laser removal machine$3,621$1,340

Carriers offer commercial property insurance to spas. Your spa has a commercial building where clients visit, employees provide a service, and equipment or materials are stored. Commercial property insurance functions to cover the building and its contents. 

Commercial property insurance will reimburse your losses if your spa burns to the ground or gets destroyed by extreme weather. The amount of reimbursement you’ll get will be equal to the value of the totaled building. 

Fire, extreme weather, theft, vandalism, and other covered perils will damage your spa’s building. In this situation, commercial property insurance will give reimbursements equal to the value of damaged building structures. 

Commercial property insurance has inclusions that protect business equipment and other valuables inside of your spa’s building. These inclusions are:

  • Business equipment and tools coverage

  • Stocks and contents coverage

Fire, extreme weather, theft, vandalism, and other covered perils might result in the loss or damage of equipment such as facial steamers, magnifying lamps, UV tower warmers, sterilization units, hydraulic chairs, electric facial hair remover, hydrotherapy tubs, and others.  Business equipment and tools coverage will help by reimbursing the money you spent on these items. 

Your spa has other valuable supplies such as creams, lotions, healing stones, aromatherapy candles, essential oils, and perfumes.  There are also precious items such as computers, important documents, office furniture and decorations, and more. When these become lost or damaged due to fire,theft, vandalism, and other covered perils, stocks and contents coverage sees to it that you recover your investment. 

Actual Cash Value vs Replacement Cost

Upon buying your commercial property insurance, insurance companies will ask whether you want to get it as a replacement cost coverage or actual cash value coverage. So what’s the difference between the two? Take a look at the table below:

Replacement Cost 

Actual Cash Value 
In a replacement cost, the reimbursements you’ll get will be equal to the value of scheduled commercial property not taking depreciation into account. For example, if your commercial building is $1 million, you’ll also receive the same amount when a covered peril happensIn an actual cash value, the reimbursements you’ll get will be equal to the depreciated value of the scheduled property. For example, if your commercial building is $1 million and it has depreciated 5% when it was destroyed, you’ll only receive $500,000

Also read:

Spa Business Interruption Insurance 

Your spa will close for an indefinite period of time because of an economic crisis, business renovation, or relocation. And so, carriers offer business interruption insurance for spas. 

Business interruption insurance will provide money that’s equal or partial to the monthly average revenue of your spa. In practice, you use this insurance policy when the spa temporarily closes. Through business interruption insurance, your spa can pay for their employee wages, employee benefits, loans, mortgages, and other operational costs. 

Understand that business interruption insurance doesn’t account for all kinds of business closures. This insurance for spa business excludes closures as a result of floods, earthquakes, the Covid-19 pandemic, and other related events unless stated as covered by the carrier to the contrary. 

Sexual Harassment Insurance for Spas

There are instances where a spa received a sexual harassment lawsuit and ended up paying the victim. Here are some examples:

  • Massage Heights, a spa operating in multiple locations in the United States, had to pay $3.3 million in a sexual harassment lawsuit

  • Massage Lux, a spa in Williamsburg, had to pay $100 million after four customers claimed to have experienced sexual assault

  • Massage Envy, one of the largest spas in the United States, received a $2 million lawsuit from one of its customers. 

Liability insurance does not cover sexual harassment ( though some claim that general liability insurance can be useful ).

The one policy that will cover sexual harassment lawsuits from clients is sexual misconduct and molestation liability insurance. The features of sexual misconduct and molestation liability insurance are as follows:

  • $3,500 minimum premium

  • $15,000 minimum retention

  • $250,000 - $5 million policy limit

  • $250,000 sub-limit for assault and battery associated with sexual harassment

  • Available to educational institutions, non-profit organizations, religious institutions, transportation providers, healthcare providers, leisure providers

Workers Compensation Insurance for Spas

Your employees are constantly experiencing work-related hazards. Such work-related hazards include but are not limited to repetitive motion injuries, slip and falls, and stress. You have to look after your spa’s employees whether they’re full-time or part-time. And for this, workers' compensation insurance can help. When an employee suffers from a work-related injury or disease, workers' compensation insurance will take care of hospitalization, medical treatment/procedure, medication, rehabilitation, and lost income compensation.

The lost income compensation will be equal to two-thirds of the employee's average weekly wage. This is the case in most states. However,  in some states, lost income compensation is higher or lower than this.

Additionally, workers' compensation insurance will provide coverage if the employee dies. The insurance will pay for funeral expenses and will give an allowance to the employee's dependents amounting to two-thirds or 67% of the average weekly wage.

Workers' compensation insurance provides legal protection for your business. Most workers comp laws or labor laws prohibit employees from suing employers whose business is covered with workers' compensation insurance. 

Day Spa Insurance

Day spas are different from spas as they provide non-surgical beauty services. Most focus on facials, massage, pedicure, and other quick treatments. If you’re the owner of one, consider going for a day spa insurance. Here are its features:

  • General liability insurance with a $1 million-$2 million per occurrence and aggregate limit

  • $5,000 tools and equipment coverage included in general liability insurance

  • Professional liability insurance with a $1 million-$3 million per occurrence and aggregate limit

  • Sexual abuse and molestation coverage included in professional liability insurance

  • $25,000-$500,000 commercial property insurance

  • Workers' compensation insurance with a $500,000-$1 million employer’s liability coverage

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Spa Insurance Cost

  • The average spa general liability insurance cost is about $46 per month or $552 per year for a $1 million coverage

  • Spas pay $42.5 a month or $510 a year for $1 million professional liability insurance 

  • The cost of commercial property insurance for spas is $61 a month or $732 a year

  • Business interruption insurance for spas costs $42 a month or $504 a year

For further reference, we also included in this section the pricing of the insurance companies offering coverage for spas:

CompanyCost per monthCost per yearBest for
CoverWallet$25$300Online spa business insurance quote comparison
Thimble$30$360Short-term day spa insurance 
Next$35$420Quick spa business insurance application
Hiscox$39$468Beauty shop and spas
Progressive$42$504Mobile spas
State Farm$50$600Spas, estheticians, cosmetologists, and barbers

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Best Spa Insurance Companies

When shopping around for spa insurance coverage, you’ll have to pick the right company to work with. To make that easier for you, we’ll take a look at the best spa insurance companies. Now their pros, cons, and pricing for a $1 million general liability coverage. 

To compare spa business insurance quotes online from these carriers as well as other leading spa business insurance companies, be sure to click the 'Get Quotes' button below and complete the form.


CoverWallet Insurance for Spas

Insuranks rating 10/10
Best for Online spa insurance quote comparison
Average cost $25 per month 
Year Founded September 2015 and acquired by AON at 2020
CEO Inaki Beringuer (former)
Headquarters 101 Avenue of the Americas 18th Floor New York, NY 10013 United States
Customer Support (646) 844-9933
AM Best Rating A ( excellent)
BBB Rating A+
Number of Complaints 158

Why Get Insured by CoverWallet?

  • Best online quote comparison platform for  spa business  insurance

  • Customizable policies

  • Insurance policies for spa starts at $300 annually

Why Take CoverWallet with a Grain of Salt?

  • Some policies CoverWallet offers for spas come are underwritten by its partners

CoverWallet is the best online quote comparison platform for spa business insurance. With this company, you’ll get your hands on the quotes of all insurance carriers in the United States. CoverWallet also allows the customer to buy insurance policies immediately and manage such policies in the MyCoverWallet app


Progressive Insurance for Spas

Insuranks rating 6/10
Best for Mobile spas
Average cost $42
Year Founded 1937
CEO Tricia Griffith
Headquarters Mayfield, Ohio, United States
Customer Support 1-800-444-4487 and customer service portal
AM Best Rating A+  ( superior)
BBB Rating D -
Number of Complaints  1,313

Why Get Insured by Progressive?

  • Features both business and commercial auto coverage

  • Covers many areas

  • Willing to work with mobile spas

Why Take Progressive with a Grain of Salt?

  • Ratings are not what you would expect from an AM-Best rated company


Progressive specializes in working with massage spas, mobile spas, health spas, and day spas, making them one of the more versatile insurance companies available. Spa business coverage automatically comes with general liability coverage as well as commercial auto insurance for spa businesses.


Hiscox Insurance for Spas

Insuranks rating 7/10
Best for Beauty shop and spas
Average cost $39 a month
Year Founded 1901
CEO Aki Hussain
Headquarters Pembroke Parish, Bermuda
Customer Support 1-866-424-8508 and
AM Best Rating A - excellent
BBB Rating A-
Number of Complaints 12

Why Get Insured by Hiscox?

  • Responds quickly to claims

  • Two kinds of coverage for spas

  • Also covers beauty shops

Why Take Hiscox with a Grain of Salt?

  • Limited coverage area

Hiscox offers two specific kinds of policies for spas, bundled into their “spa and beauty shop coverage” policies: professional liability coverage and general liability coverage. They allow you to choose between flexible payment options, and they offer extremely quick responses to their claims.


State Farm Insurance for Spas

Insuranks rating 6/10
Best for Spas, estheticians, cosmetologists, and barbers
Average cost $50
Year Founded 1922
CEO Michael L. Tipsord
Headquarters Bloomington, Illinois, United States
Customer Support 800-782-8332 and  customer service portal
AM Best Rating A++  ( superior)
BBB Rating B
Number of Complaints  538

Why Get Insured By State Farm?

  • 24/7 phone and online claims service

  • Has computer property policy aside from the common policies for spas 

  • Has optional coverages so that the policyholder can customize

Why Take State Farm with a Grain of Salt?

  • Some customers complained that State Farm agents were rude and mocked them for being stupid by not knowing how their policy works

State Farm insures not only spas but also barbers, cosmetologists, and estheticians. The company boasts a very responsive claims process, which it achieves by allowing customers to call different phone lines that cater to auto claims, glass claims, loan approval, and business insurance claims. To ease the minds of the customers, State Farm has an online claims tracker on its website. 


Thimble Insurance for Spas

Insuranks rating 9/10
Best for Short-term day spa insurance 
Average cost $30
Year Founded 2015
CEO Jay Bregman
Headquarters New York City
Customer Support
AM Best Rating A+  ( excellent)
BBB Rating A+
Number of Complaints 53

Why Get Insured by Thimble?

  • Fast insurance application

  • Thimble has short-term insurance is which is useful for starting spas

  • Offers the most useful basic insurance policies small spas need

Why Take Thimble with a Grain of Salt?

  • Some customers report that Thimble is a handful when it comes to insurance cancellation

Thimble offers the most basic coverages spas need such as general liability insurance. Its insurance for spa doesn’t include workers comp insurance and commercial property insurance. Nonetheless, the company offers both as separate policies to the customer.  The best thing about Thimble is that its insurance is available as a short-term policy which is great for those who don’t need coverage for a long time. 


Next Insurance for Spas

Insuranks rating8/10
Best forQuick spa insurance application
Average cost$43
Year Founded2015
CEOGuy Goldstein
Headquarters75 California Ave, Palo Alto, CA 94304, United States
Customer Support1-855-222-5919 and
AM Best RatingA-  (excellent)
BBB RatingA+
Number of Complaints13

Why Get Insured by Next?

  • Insures customers within 5 minutes

  • No deductible on the general liability insurance for spas

  • Next offers general liability, professional liability (E&O), commercial auto, workers’ compensation, and commercial property policies for spas

  • Allows for the bundling of insurance policies to get a minimum 5% discount

Why Take Next with a Grain of Salt?

  • Some customers reported that Next sometimes impose excessive rates on startup spas

Next boasts a very fast insurance application process. Its insurance policies are available to most states in the United States. With this company, there’s no need to engage with lengthy calls with agents over the phone. The company uses big data technology to figure out which policies customers absolutely need.

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Get all the best quotes from leading providers in a click of a button!

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