Liability Insurance for Bodyworkers and Massage Therapists: A comparative analysis matrix of five leading organizations

Transcription

1 Liability Insurance for Bodyworkers and Massage A comparative analysis matrix of five leading organizations Elizabeth Pearch, BA, ACMT, CHC, Doula April 1, 2014

2 Table of Contents... 1 A comparative analysis matrix of five leading organizations... 1 Starting out and covering your assets... 1 Membership organizations... 1 Understanding terms used... 2 The matrix... 1 In conclusion... 1 ii

3 Elizabeth Pearch Liability Insurance for Bodyworkers and Massage A comparative analysis matrix of five leading organizations Starting out and covering your assets As one embarks upon a career in bodywork or massage therapy, it is very important to investigate and choose general liability and professional liability insurance to protect oneself as they practice. This brief paper examines five bodywork and massage organizations, looking specifically at the cost of Suspendisse potenti. membership, membership requirements, professional insurance options available, monetary limits of coverage, aggregate limits, and other additional benefits of membership. Membership organizations The following organizations, in no particular order, were researched: American Massage Therapy Association (AMTA), Associated Bodywork and Massage Professionals (ABMP), Massage Magazine Insurance Plus (MMIP), National Association of Massage Therapists (NAMT), and American Medical Massage Association (AMMA). All of the above organizations have membership fees and provide general and professional liability insurance costs, of which, are included in the membership fee. These organizations all provide for online management of membership including, application, name change, address updates, other demographic information updates, access to insurance documents, and renewals. With the exception of MMIP, which is a magazine entity, the other four organizations have minimum professional prerequisites required for organization membership. 1

4 Understanding terms used The following is a list of insurance terms used to describe benefits: n Additional Insured Endorsement: (AIE) is coverage one can get to cover a fiscally related entity such as a landlord or employer. n Aggregate Limit: The total dollar amount of claims against the policy for a given policy year. n Anywhere Coverage: Insurance coverage that follows the insured where ever they are working. n Business Personal Property: Property and assets owned by the business or used by the insured for business purposes. Examples: massage table, computer, sound system for music, massage chair, etc. n Claims Made Policy: A policy that provides insurance coverage for claims made while the policy is in effect during the policy year. n Fire Damage Coverage: Damage cause by a fire to the work premise of the insured. Fire damage coverage does not generally cover business personal property within the premise covered. n General Liability Coverage: Protects against claims made when clients allege accident injury due to insured negligence. Example: trip and fall accident. n Insurance Provider: The insurance company used by the organization to provide insurance. n Legal Defense Costs: Legal and administration costs for defending against client claims. Some organizations include costs in the aggregate limits provided. Some organizations provide legal defense costs in addition on top of aggregate limits. n Malpractice/Professional Liability Coverage: Protects against claims made by clients against insured for injuries due to negligence, misconduct, or lack of standard professional skill. n Product Liability Coverage: Protects against claims made by clients against insured for damage or injury resulting for products used on clients such as massage lotion. n Occurrence Claim Policy: Coverage paid on claims made even after policy term. 2

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6 Elizabeth Pearch Figure 1 Liability Insurance Matrix The matrix The chart matrix on the preceding page compares and contrasts member benefits of each of the five organizations discussed in this paper. In conclusion It is this author s opinion that ABMP provides the best liability insurance options for its members for the sole reason that insurance aggregate limits are per member and do not come out of a share aggregate limit pool. Nonetheless, it is a practitioner s professional responsibility to choose insurance coverage that suits one s own business needs. 4

7 Bibliography Associated Bodywork and Massage Professionals: American Medical Massage Association: American Massage Therapy Association: Massage Magazine Insurance Plus: National Association of Massage 5