Insurance Program Results
Medispas: Frequency Rising
Crittenden looks for carriers to aggressively compete for cosmetic surgeons despite the soft market. Demand for coverage of cosmetic procedures continues to grow as providers expand the scope of their practice to include less-invasive procedures, such as Botox injections, peels, laser resurfacing and other procedures that entail less risk, cost and recovery time. The cosmetic surgery market is also expected to expand alongside increased demand for antiaging procedures. Nearly 16 million cosmetic procedures (surgical and minimally-invasive) were performed in the U.S. during 2014, marking a fifth consecutive year of growth. Breast augmentation, rhinoplasty, liposuction, eyelid surgery and facelifts comprise the top five most-performed procedures.
Rate increases will be scarce despite an uptick in claim severity and the historically high frequency of claims for this class. Carriers are stuck between competitive pressure and cosmetic surgeons’ greater exposures. Adequate pricing will remain elusive, and despite demand, capacity could push carriers to cut pricing to the bare minimum. Cosmetic procedure risks have spread across nearly every account written by med mal carriers with the proliferation of facilities that include outpatient medical centers, medispas and retail clinics. No carrier plans to abandon writing cosmetic and aesthetic surgeons, but more can be expected to develop standalone policies with higher pricing to help offset the cost of claims. CNA, MedPro Group and The Doctors Co. are among the few carriers currently offering standalone programs.
Copyright © Crittenden Research Inc., May 18th, 2015
Beauty (Independent Contractor)
Administered By: PPIB
Distribution: MGU
| Industries: |
Beauty Salon/Barber Shop, Cosmetic Surgeons/Aesthetic Professionals, Day Spas, Tanning Salons |
|---|
Carriers: Lloyd's of London
Coverage: Abuse & Molestation Liability, General Liability, Products Liability, Professional Liability, Property, Workers' Compensation
Limits: $100,000 - $1 million
Cosmetic & Therapeutic Laser/IPL Services
Administered By: PPIB
Distribution: MGU
| Industries: |
Cosmetic Surgeons/Aesthetic Professionals, Medispas, Nurses, Physicians |
|---|
Carriers: Lloyd's of London
Coverage: Professional Liability
Limits:
Medispa Services
Administered By: PPIB
Distribution: MGU
| Industries: |
Cosmetic Surgeons/Aesthetic Professionals, Day Spas |
|---|
Carriers: Lloyd's of London
Coverage: Abuse & Molestation Liability, Commercial Property, General Liability, Professional Liability, Workers' Compensation
Limits:
Permanent Cosmetics
Administered By: PPIB
Distribution: MGU
| Industries: |
Body Piercing/Tattoo Parlors, Cosmetic Surgeons/Aesthetic Professionals, Day Spas, Medical Directors, Medispas |
|---|
Carriers: Lloyd's of London
Coverage: General Liability, Professional Liability, Workers' Compensation
Limits:
Medical Professional Liability
Administered By: Markel
Distribution: Direct/Broker
| Industries: |
Allied Health, Alternative Medicine, Ambulatory Surgery Centers (ASCs), Behavioral/Mental Health Organizations, Blood/Tissue Banks, Community Health Centers, Cosmetic Surgeons/Aesthetic Professionals, Home Healthcare, Hospice, Hospitals, Imaging Centers/Diagnostic Labs (X-Ray, MRI, etc.), Medical Clinics/Infirmaries, Medispas, Nurse/Staffing Registries, Occupational Therapist, Pharmacies, Physical Therapists, Physicians (Locum Tenens), Senior Living Facilities, Sleep Clinics, Urgent Care, Weight Loss Clinics |
|---|
Carriers: Markel Corp.
Coverage: Excess, General Liability, Professional Liability, Umbrella/Excess
Limits: up to $25 million (Umbrella/Excess), up to $5 million (Primary)
Miscellaneous Medical Facilities
Administered By: Ironshore
Distribution: Direct/Broker
| Industries: |
Adoption/Foster Services & Facilities, Adult Day Care, Allied Health, Ambulatory Surgery Centers (ASCs), Bariatric Surgery, Behavioral/Mental Health Organizations, Blood/Tissue Banks, Cancer Treatment Centers, Community Health Centers, Cosmetic Surgeons/Aesthetic Professionals, Dialysis Centers, Emergency Response Services (Ambulance), Home Healthcare, Hospice, Imaging Centers/Diagnostic Labs (X-Ray, MRI, etc.), Laboratories, Nurse/Staffing Registries, Pharmacies, Physical Therapists, Rehabilitation Facilities, Substance Abuse Rehabilitation Facilities & Services, Urgent Care, Weight Loss Clinics |
|---|
Carriers: Ironshore Inc.
Coverage: Employee Benefits Liability, Excess, General Liability, Hired & Non-Owned Auto, Professional Liability
Limits: up to $1 million/$3 million (Primary), up to $10 million (Follow-Form Excess)
Allied Healthcare
Administered By: Navigators Management Co. Inc.
Distribution: Carrier Direct
| Industries: |
Adult Day Care, Ambulatory Surgery Centers (ASCs), Blood/Tissue Banks, Chiropractors, Cosmetic Surgeons/Aesthetic Professionals, Counseling (Marriage & Family), Home Healthcare, Hospice, Imaging Centers/Diagnostic Labs (X-Ray, MRI, etc.), Medical Clinics/Infirmaries, Medical Labs, Medispas, Pharmacies, Physical Therapists, Psychiatric Facilities/Hospitals, Substance Abuse Rehabilitation Facilities & Services |
|---|
Carriers: The Navigators Group Inc.
Coverage: General Liability, Professional Liability
Limits: up to $5 million (Primary or Excess)
Ambulatory Surgery Centers
Administered By: James River Insurance Co.
Distribution: MGA
| Industries: |
Ambulatory Surgery Centers (ASCs), Cosmetic Surgeons/Aesthetic Professionals |
|---|
Carriers: James River Insurance Co.
Coverage: Excess, General Liability, Non Owned Auto, Professional Liability
Limits: up to $1,000,000/$3,000,000 (Primary), up to $5,000,000 (Excess over multiple underlying layers, supported and unsupported)
Casualty for Life Sciences Companies
Administered By: XL Insurance (Bermuda)
Distribution: Carrier Direct
| Industries: |
Biotech, Cosmetic Surgeons/Aesthetic Professionals, Life Sciences, Medical Devices, Pharmaceutical Risks, Veterinarians/Veterinary Risks |
|---|
Carriers: XL Insurance Co.
Coverage: Errors & Omissions (E&O), Excess, General Liability, Products Liability, Umbrella/Excess
Limits: up to $50 million
Healthcare Services
Administered By: Prime Insurance
Distribution: Carrier Direct
| Industries: |
Assisted Living Facilities, Cosmetic Surgeons/Aesthetic Professionals, Midwives, Nursing Homes/Skilled Nursing Facilities, Rehabilitation Facilities |
|---|
Carriers: Prime Insurance Co.
Coverage: Professional Liability
Limits: up to $1,000,000/$2,000,000 (Limit capacity)
Allied Healthcare
Administered By: Hiscox USA
Distribution: Carrier Direct
| Industries: |
Acupuncturist, Adoption/Foster Services & Facilities, Adult Day Care, Allied Health, Assisted Living Facilities, Audiologists, Body Piercing/Tattoo Parlors, Chiropractors, Cosmetic Surgeons/Aesthetic Professionals, Dental Hygienists, Dialysis Centers, Emergency Response Services (Ambulance), Fitness Professionals, Home Healthcare, Hospice, Laboratories, Medical Clinics/Infirmaries, Medical Directors, Medispas, Mental Health/Behavioral (Counseling/Counselors), Nurse Practitioners, Nurse/Staffing Registries, Nurses, Nutritionist/Dietitian, Occupational Therapist, Opticians, Pharmacies, Pharmacists, Physical Therapists, Psychiatric Facilities/Hospitals, Psychologists, Research/Research Organizations (Clinical, Etc.), Speech Therapy/Therapists, Substance Abuse Rehabilitation Facilities & Services, Therapy/Therapists, Urgent Care, Veterinarians/Veterinary Risks, Weight Loss Clinics |
|---|
Carriers: Hiscox Insurance Co. Inc.
Coverage: Abuse & Molestation Liability, Crime, Cyber Liability, Excess, General Liability, Privacy Liability/Notification Expense, Professional Liability, Umbrella/Excess
Limits: up to $10,000,000
Cosmetic Nurses & Esteticians
Administered By: CM&F
Distribution: Program Administrator
| Industries: |
Cosmetic Surgeons/Aesthetic Professionals |
|---|
Carriers: Lexington Insurance Co.
Coverage: Professional Liability
Limits:
Medical Spas
Administered By: General Star
Distribution: Carrier Direct
| Industries: |
Cosmetic Surgeons/Aesthetic Professionals, Medispas, Wellness/Preventative Care |
|---|
Carriers: General Star Indemnity Co., General Star National Insurance Co.
Coverage: General Liability, Professional Liability
Limits: Primary - $1 million/$3 million, Follow-Form Excess - $5 million/$5 million
MediSpas
Administered By: CM&F
Distribution: Program Administrator
| Industries: |
Cosmetic Surgeons/Aesthetic Professionals, Medispas |
|---|
Carriers: Medical Protective Co.
Coverage: Excess, Professional Liability, Umbrella/Excess
Limits: $1,000,000 per claim - $3,000,000 Aggregate (Primary)
Physicians & Surgeons
Administered By: MedPro Group
Distribution: Carrier Direct
| Industries: |
Anesthesiologists, Bariatric Surgery, Cosmetic Surgeons/Aesthetic Professionals, Gastroenterologist, Midwives, OB/GYN, Physician Groups, Physicians, Podiatrists, Psychiatrists, Radiology/Radiologists, Surgeons, Telemedicine |
|---|
Carriers: Medical Protective Co.
Coverage: Cyber Liability, Excess, General Liability, Medical Malpractice, Professional Liability, Settlements - Medical
Limits: up to $10 million
Physicians & Surgeons
Administered By: Liberty Intl Underwriters
Distribution: Carrier Direct
| Industries: |
Anesthesiologists, Cosmetic Surgeons/Aesthetic Professionals, Gastroenterologist, Midwives, Nurse Practitioners, Nurses (CRNA), OB/GYN, Physician Assistants, Physician Groups, Physicians, Podiatrists, Radiology/Radiologists, Surgeons |
|---|
Carriers: Liberty International Underwriters
Coverage: Cyber Liability, General Liability, Medical Malpractice, Professional Liability
Limits: up to $1 million/$3 million
Physicians & Surgeons
Administered By: LAMMICO
Distribution: Carrier Direct
| Industries: |
Anesthesiologists, Bariatric Surgery, Cosmetic Surgeons/Aesthetic Professionals, Gastroenterologist, Nurse Practitioners, Nurses (CRNA), OB/GYN, Physician Groups, Physicians, Physicians (Locum Tenens), Podiatrists, Psychiatrists, Radiology/Radiologists, Surgeons |
|---|
Carriers: Louisiana Medical Mutual Insurance Co.
Coverage: Cyber Liability, Medical Malpractice, Professional Liability
Limits: up to $1 million/$3 million (Higher Limits Available)
Preferred Aesthetics Program
Administered By: Applied Medico-Legal Solutions
Distribution: Carrier Direct
| Industries: |
Cosmetic Surgeons/Aesthetic Professionals, Physicians |
|---|
Carriers: Applied Medico-Legal Solutions RRG
Coverage: Professional Liability
Limits: up to $3,000,000/$6,000,000
Professional Liability for Aesthetic Proceedures
Administered By: HPSO (AON Affinity)
Distribution: Program Administrator
| Industries: |
Cosmetic Surgeons/Aesthetic Professionals, Day Spas, Medispas |
|---|
Carriers: CNA Insurance Cos
Coverage: Professional Liability
Limits: $1,000,000 Per Claim - $3,000,000 Aggregate (PL)
Physicians & Surgeons
Administered By: Hallmark Financial Services
Distribution: Direct/Broker
| Industries: |
Cosmetic Surgeons/Aesthetic Professionals, Physician Groups, Physicians, Podiatrists, Surgeons |
|---|
Carriers: Hallmark Specialty Insurance Co.
Coverage: Medical Malpractice, Professional Liability
Limits: up to $5 million