Running a med spa requires balancing patient trust, safety, and business growth. However, with sensitive client data stored digitally — from health history and payment details to before-and-after photos — med spas have become attractive targets for cybercriminals. Given the increasing volume of sensitive patient data stored by med spas, an important question arises: Do these facilities need cyber liability insurance? The answer is yes, and here’s why.
If you own a med spa, your insurance program should go beyond physical liability. The right med spa insurance should also protect against cyber risks that threaten your reputation and bottom line.
Why Cyber Risks Are a Growing Concern for Med Spas
Med spas are often small businesses, but that doesn’t make them safe from cyberattacks. In fact, attackers increasingly target smaller practices, knowing that defenses are usually weaker than those of large health systems.
- Sensitive patient data: Hackers value health records, payment details, and even images, which they use for identity theft or extortion.
- HIPAA requirements: Many med spas are subject to HIPAA regulations, meaning a data breach could result in costly fines and legal action.
- Business impact: In 2025, ransomware was involved in 88% of breaches affecting small and mid‑sized businesses, often with median ransom demands reaching US $115,000 — an amount that can easily destabilize smaller operations and erode client trust.
What Does Cyber Liability Insurance Cover for Med Spas?
General liability and malpractice policies protect against physical risks, while cyber liability insurance addresses digital threats directly. With Olson Duncan’s cyber liability coverage, med spa owners can expect protection in areas such as:
- Breach response costs: Notifying affected patients, providing credit monitoring, and managing public relations after an incident
- Legal defense and regulatory fines: Covering lawsuits and penalties tied to HIPAA violations
- Business interruption: Reimbursing lost income if ransomware or malware forces your spa to close temporarily
- Data recovery: Helping restore compromised systems and records
How Can Med Spas Reduce Cyber Risk Beyond Insurance?
Cyber liability insurance is a critical safeguard, but prevention remains the first line of defense. Med spas can take proactive steps to minimize risk:
- Train staff: Teach employees to recognize phishing attempts and suspicious online behavior.
- Use strong authentication: Require unique login credentials, complex passwords, and two-factor authentication for all systems.
- Update regularly: Keep software, firewalls, and devices patched against known vulnerabilities.
- Follow compliance frameworks: Resources like the National Institute of Standards and Technology’s Cybersecurity Framework provide actionable best practices.
By pairing these measures with the right insurance, med spa owners can safeguard their operations and client relationships.
Safeguarding Your Med Spa’s Future
Cyber threats aren’t just a big-business problem — they’re a med spa reality. From patient privacy to financial protection, the stakes are high. Adding cyber liability to your med spa insurance program ensures your business has preventive safeguards and financial security when it matters most.
Olson Duncan Insurance understands the risks today’s med spas face. Our team builds customized insurance solutions that address cyber risks head-on, so you can focus on providing exceptional client care. Contact us today to learn how we can help protect your business.
FAQ About Cyber Liability for Med Spas
Do small med spas really face cyberattack risks?
Yes. Hackers often target smaller businesses because they assume defenses are weaker. Patient data and payment records make med spas attractive targets.
Is cyber liability insurance included in standard med spa insurance?
Not always. Some policies exclude or limit cyber coverage, so it’s essential to confirm with your broker that it’s included.
How much does cyber liability coverage typically cost for a med spa?
Costs vary based on size, data volume, and risk-management practices, but premiums are generally affordable compared to the potential financial impact of a breach.
What’s the difference between cyber liability insurance and HIPAA compliance?
HIPAA requires you to safeguard patient data. Cyber liability insurance helps cover costs if a breach occurs despite safeguards. Both are essential.
What should I do first if my med spa experiences a cyberattack?
Immediately notify your insurance provider, follow your incident response plan, and secure your systems to prevent further damage.
Olson Duncan
Established in 1945, Olson Duncan Insurance has more than 70 years of experience serving the insurance and risk management needs of California residents and businesses. During our seven decades, we’ve earned the trust of our clients and the outstanding reputation of professional integrity by consistently offering individuals and businesses quality insurance products at fair, competitive prices, backed by exceptionally responsive service.