Over the past couple of months, a number of questions come up from nurses in the aesthetic field regarding professional liability insurance. I thought it might help to lay a few of them out for clarification:
Do Nurses In The Aesthetic Field Need Their Own Liability Insurance?
1) I AM A 1099 SO DO I NEED MY OWN INSURANCE OR AM I COVERED BY THE MEDISPA?
You do need your own insurance and cannot be covered by the Medispa unless you are an employee (W-2).
2) I HAVE INSURANCE THROUGH NSO FOR MY WORK AT HOSPITALS BUT ALSO DO WORK AT A MEDISPA. THE NSO INSURANCE PROTECTS ME AT THE MEDISPA RIGHT?
NO it does not! NSO does not provide any coverage for 1099 work in the aesthetic field for the state of California. To protect yourself for your potential liability at the medispa, you need a separate insurance policy for that work.
3) WHAT IS THE COST OF PROFESSIONAL LIABILITY INSURANCE FOR A 1099?
If the medispa has it’s own professional liability insurance (not just general liability which covers slip and falls), and, if you can provide a copy of the first page of the medispas professional liability insurance and the professional liability insurance of the Medical Director, then the cost runs in the area of $1250 a year.
If the medispa does not have professional liability insurance, or if the medical director does not have insurance to cover him/her at the medispa, then your insurance will cost more as you are the primary person who could get sued. The premium for you will run about $2900 a year.
Both of the above policies are for $1,000,000 in coverage.
As you can see, it is extremely important that you find out if the medispa has it’s own insurance so that you can better discuss your compensation.
4) DO I HAVE TO PAY FOR THE PREMIUM ALL AT ONCE OR CAN IT BE DONE OVER TIME?
There are payment plans available. They normally require 25-35% down and the rest over 9-10 payments.
5) ISN’T THE MEDICAL DIRECTOR COVERED UNDER HIS PROFESSIONAL LIABILITY INSURANCE FROM HIS NORMAL MEDICAL PRACTICE?
No, he is not covered. If he is acting as a Medical Director for a medispa, he would need a separate professional liability insurance to cover him. The medispa can add him to their policy or can get a stand alone policy. Interestingly, if he is added to the medispa policy, the premium is probably less than your policy (this is because of number of claims, primary responsibility, etc. which falls on you, the nurse who does the procedure).
6) IF I AM PROVIDED A COPY OF THE REQUESTED INSURANCE, THEN I AM FULLY COVERED, RIGHT?
Yes and no. You are may be covered for the work you do at the medispa, but not for any work done outside of the medispa. If you were to attend and work at a “botox party”, you would NOT BE COVERED by your insurance that you got for the medispa.
Additionally, it depends of you are an employee or a 1099 independent contractor. If you are a 1099 independent contractor, you are not covered by the policy of the medispa.
7) I AM AN EMPLOYEE (W-2) OF THE MEDICSPA. I AM INSURED RIGHT?
The only way to know if you are insured is to:
- See a copy of the medispas policy
- Look at the exclusion page and look to see if employees are not covered, what procedures are not covered, etc.
- Check to see if all employees are automatically covered or if you must be specifically added to the policy
8) OK, I AM COVERED BY THE MEDISPA INSURANCE SO I AM OK RIGHT?
Yes and no.
YES:
If you have a problem at the medispa, you are covered
NO:
If the policy is “claims made”, then when you leave the employ of the medispa, or if the medispa changes insurance companies and then a claim is made on a procedure done under the old policy, you will not be covered. To be covered, the insurance policy must be “Occurrence” form of insurance. With “occurrence” insurance, even if you leave the employ of the medispa and then a claim is made against you, you will be covered.
YES, BUT HOW MUCH:
If the amount of insurance coverage is “shared aggregate”, then the let’s say $1,000,000 of coverage is the total amount of protection that is shared by all parties being sued.
Recent lawsuits have included the nurse, the medispa, the medical director, the landlord and even the person who booked the appointment!
NO:
The insurance company of the Medispa may try to show that you were at fault for the cause of action and sue you!
9) SO IF I AM AN EMPLOYEE, SHOULD I GET MY OWN INSURANCE?
It depends on you. If you feel that insurance that costs about $100 a month is not worth the downside risk to you, your family, your assets, etc., then don’t get insurance. If on the other hand, you don’t want to run the risk of being in debt for the rest of your life, then $100 a month is a small price to pay for piece of mind.
10) I HAVE INSURANCE AT THE HOSPITAL WHERE I WORK FROM ANOTHER COMPANY, SO WHEN I DO SOME PROCEDURES AT A MEDISPA I AM COVERED BY THE INSURANCE FROM THE HOSPITAL, RIGHT?
No, the insurance from the hospital only covers you for actions at the hospital. Nowhere else.
I hope these points help clarify any questions you may have regarding insurance, your risk and how to protect yourself and your family.
Barry J Klazura
