Insurance is essential in healthcare, and thanks to the introduction of CoverWell by Injectsure, the beauty and wellness industries’ first-ever opt-in, per-treatment insurance, consumers can rest assured knowing there is coverage available for elective aesthetic procedures.
The experience that prompted the launch of CoverWell was a personal one. Co-founders Patrick Tighe, an attorney in West Palm Beach, FL, who works with NFL players suffering from brain injuries, and his wife, Sarah, a fan of spa and beauty treatments, found themselves in a situation where insurance would have been helpful. About eight years ago, Sarah was interested in getting permanent makeup on her lips and researched to find the best practitioner. She flew to New York City for the treatment. “About three weeks after the laser treatment, I developed a dark patch on my skin that would not go away,” says Sarah. “Nothing about the service had seemed unusual, but there it was—an unsightly mark. I’d experienced a complication—something mentioned in the medical spa’s informed consent that I’d read and signed prior to the procedure, but I never expected to experience!”
Sarah then did what anyone would. “I did the logical thing and returned to my service provider—only to be informed that it was my fault,” she says. “I had been ‘too tan’ when I received the procedure. Unfortunately, the situation wasn’t an easy fix. “My med spa practitioner wasn’t neglectful or incompetent, even though my treatment produced a negative outcome,” says Sarah. “But to protect herself and her business, she told me I was to blame for the unsightly discolored patch on my face.”
It was then the couple turned to their friend Dan Kapp, M.D., a local board-certified plastic surgeon, and began to explore possibilities to remedy the situation. The entire ordeal brought to light the consequences patients face when procedures go awry. The Tighes wondered if there was any protection for such procedures, and Kapp assured them there was not. With that in mind, they began the partnership and the meticulous planning required to launch a specialized insurance company like CoverWell by InjectSure.
Per-treatment insurance has the potential to impact the industry in a variety of way. For example, it ensures the clients that spas have worked so hard to attract won’t be lost or turned into adversaries from an unexpected reaction to a treatment. CoverWell also protects spas from reputational damage; disruptive and time-consuming depositions; and potential settlements that may increase insurance premiums. “As a spa professional, it’s painful to have to turn your back on a client and let the attorneys do their job,” says Kim DeOrsey, president of development for CoverWell. When you add a layer of protection by offering CoverWell, you’re ensuring that your clients receive five-star care.”
Insurance also gives smaller, independently owned businesses the ability to offer the kind of treatments that would previously been too expensive to insure. A medical spa that offers CoverWell for a year and establishes a good track record can also go back to their primary, general liability insurer and ask for a reduced premium. Another benefit is the potential for increased spa revenue that comes with being able to offer more invasive procedures, such as laser therapy, Botox, or IV drips, that have higher price points.
Some of the most commonly covered procedures include injectables, laser treatments, IV therapies, permanent makeup, and body contouring. Manicures and pedicures as well as treatments that require general or twilight anesthesia are not covered.
Paid for by the client at the time of the service, the cost averages just 7 percent of the treatment price. Coverage lasts for 30 days following the procedure and provides up to $125,000 in corrective care in the event of unforeseen medical complications. It can even be bundled into the overall price of the service. CoverWell, available in all 50 states, reimagines the professional liability insurance business model and fills an important need in the industry.