Article by Barry Bolos
Insurance is not rocket science, nor is it a complex mathematical equation and formula.
It should always be the case that premium charged is reflective of the risk to the insurer. For many reasons insurance companies do not fully understand the risk, so how do they come up with a price of between $220 – $350 for massage therapists.
Mainly decision makers sit in ivory towers, far removed from what happens in the real world. So what you have is in effect decision made on stereotyping and assumptions not on research. What is surprising is that most insurance companies and brokers will only embark upon researching and promoting a proposal if they consider it to be a viable proposition dollar wise in terms of premium income and claims.
The industry has close to 25,000 qualified practitioners currently operating and the incidents of claims made against these massage therapists is minimal. Something you expect an insurer to know and also appreciate.
Gone are the days where a massage therapist (and the industry) was not considered mainstream. In today’s world therapists are:
- Trained and qualified;
- Comply with a code of behaviour;
- Belong to industry associations and comply with standards and guidelines laid down by these associations.
The approach should be simple.
Spend time with industry groups and conduct your own research. With a step by step approach, form a clear understanding of how they operate, everything from practices to procedures to training to industry standards.
Armed with this knowledge approach a vast array of underwriters and educate them on what really occurs in your day to day operations.
The incidents of claims made against massage therapists is minimal, something you would expect an insurer to know.
Looking at the broader picture, it appears other industry groups are gaining the recognition of insurance companies/brokers.
Herbalists $280.00
Naturopaths $300.00
Judo Instructors $400.00
The above occupations carry more risk than a massage therapist, it is only because these industries have lobbied hard and knocked on many doors that they have achieved these rates.
Premiums should be around the $140.00 to $160.00 range.
A quick guide in regards to insurance terminology and what it should cover is as follows:
- Public Liability – slip and fall;
- Product Liability – goods used and sold e.g. oils;
- Treatment Risk – the actual risk associated with a treatment;
- Professional Liability and/or Professional Indemnity – any advice / guidance you may give in line with your training and associations.
In a nutshell, packages are designed to provide cover the moment a client enters your practice as it is from here that you have a duty of care. (Providing the massages you undertake do not extend to skeletal manipulation and chiropractics.)
Barry Bolos has been associated with RGIB Insurance since 2002.
His role is to focus on assisting industry groups and associations to formulate packages for the individual members and their respective association as a whole. He believes strongly in role
of research when formulating and facilitating the correct premiums for his members.