Franchisees in the healthcare and beauty industry should meticulously review insurance policies to identify and address potential coverage gaps. Awareness of common exclusions is crucial for effective risk management.

Key Insurance Exclusions by Policy Type:

• General Liability Insurance: Be aware of potential exclusions for claims arising from professional services, harm from products after service completion, liabilities assumed under contract, services rendered before the policy's start date, certain bodily injuries from services, and medical payments for injuries on premises.
• Professional Liability (Malpractice) Insurance: Policies may exclude claims related to intentional harm, cosmetic procedures, adverse reactions to products or medical devices, lack of informed consent, incidents prior to the policy period, costs to redo treatments, and potentially medical directors' direct patient care.
• Cyber Liability Insurance: Watch for exclusions concerning data breaches from unauthorized access, losses from social engineering like phishing, and third-party claims due to data breaches.
• Workers' Compensation Insurance: Exclusions can include intentionally caused injuries, injuries to independent contractors, and occupational diseases from exposures.
• Commercial Auto Insurance: Common exclusions involve rented or employee-owned vehicles used for work, use by unauthorized drivers, and vehicles not listed on the policy.
• Employment Practices Liability Insurance (EPLI): Policies might exclude claims over wage and hour law violations and third-party harassment or discrimination claims (e.g., by clients).
• Property Insurance (Building and Contents): Typical exclusions include damages from earthquakes and floods (unless specifically added) and issues arising if the property is vacant for extended periods.

Critical Additional Coverage Areas to Review:

It's also important to check for exclusions related to equipment breakdown, employee-owned tools, product liability for items like skincare or IV products, services performed off-site, and the transmission of communicable diseases.

1. Consult Your Insurance Broker: Discuss this checklist to address exclusions and critical coverage needs.
2. Evaluate Professional and Product Liability: Ensure coverage for specialized services, prior acts, informed consent, treatments, off-premises services, and product reactions.
3. Confirm Cyber Security: Add Cyber Liability coverage for data breaches and fraud.
4. Schedule Annual Policy Reviews: Update coverage to reflect changes in operations and regulations.