Massage therapist Insurance

Factors that affect the cost of massage therapist insurance

Just like tailoring a treatment plan to each client, your insurance premiums are customized to fit your unique practice. Insurance companies weigh several key factors, like where you work, how you work, and how much you work, to determine your risk and premium rate. Here’s a breakdown of what goes into the calculation:

Location

Where you practice has a big influence on your level of risk. For instance, a downtown clinic in Toronto or Victoria generally costs more to insure than a small home-based setup. Brick-and-mortar locations in more urban neighbourhoods tend to attract higher premiums due to increased foot traffic and exposure to risks like theft and vandalism. On the other hand, if you're a mobile therapist, you'll likely need commercial auto insurance in addition to property and liability, which adds to your premium costs as well.

Business size and structure

Are you a solo therapist offering mobile services, or do you run a multi-room clinic with staff? A one-person home studio is less risky than a multi-therapist clinic. Bigger operations often need higher limits and must account for employee liability, which makes insurance pricier.

Equipment and property value

The value and volume of your massage tools, tables, and clinic assets also matter. For example, a $1,200 portable massage table and advanced ultrasound unit will likely cost more to insure than a basic setup. Insurance providers price premiums based on how much it will cost to replace your equipment. It also depends on whether you have an actual cash value or replacement cost policy.

Annual projected revenue

Higher session frequency can mean higher risk and higher costs. As your income grows, clients may anticipate larger payouts in case of a claim, prompting insurance companies to charge you more to ensure they can cover any future claims.

Coverage types and limits

The more protection you add and the higher the coverage limits, the more you'll pay in premiums. For example, British Columbia's $2 million in professional liability is the minimum requirement. If you decide to increase it to $3 million for extra protection and then add additional coverage like general liability and commercial auto, while you've boosted your protection, you've also increased your massage insurance premiums.

Chosen deductibles

This is the amount you pay when you file a claim before your insurance kicks in. Many types of coverage include a deductible. When you choose a higher deductible, it often lowers your premiums (since insurance companies have to pay out less), but that means more out-of-pocket if you file a claim.

Claims history

Seasoned RMTs typically enjoy lower rates, especially if they’ve maintained a clean record. Insurance companies tend to look favourably on therapists with years of no claims, seeing them as a lower risk for filing one. Conversely, recent or frequent claims, even minor ones, can raise your premium.