The cosmetic surgery industry is booming. With the market projected to grow at 9.6% annually through 2030, practice owners are capitalizing on increasing demand for both surgical and non-surgical aesthetic procedures. But beneath the surface of this beautiful business lies a less attractive reality: significant financial risk.

‍

‍

"Cosmetic surgery practices operate in a unique risk environment," explains Jonathan Strike, Co-Founder of 3F Captive Services. "You've got cash-pay clients who are more likely to sue over dissatisfaction, high malpractice exposure, and vulnerability to economic downturns. But here's what most practice owners don't realize – these same risks can become a profit center through captive insurance."

The Challenge of Cash-Pay Business

According to the American Society of Plastic Surgeons, Americans spent over $20 billion on cosmetic procedures in 2022, with the vast majority paid “out-of-pocket” by patients. This unique situation creates vulnerability to litigation, and reduced spending on elective surgery during economic downturns.

A Financial Facelift for Your Practice

Captive insurance offers cosmetic surgery practices a strategic solution. Instead of paying premiums to a traditional insurance carrier, practices form their own insurance company - a captive - to cover their specific risks, including malpractice, key person insurance, and economic volatility.

The process is intuitive: your practice pays premiums into your own captive. When claims and expenses are lower than expected, you keep the profits. It's a complete reversal of the traditional insurance model, transforming a cost center into a wealth-building tool.

Building Wealth Through Risk Management

While competitors stress about lawsuits and market downturns, forward-thinking practice owners use captive insurance to build long-term wealth. The captive structure offers tax advantages, asset protection, and the opportunity to profit from your own careful risk management.

Ready to give your practice a lift? 

Book your consultation with 3F Captive Services today and discover how captive insurance can make your ROI a thing of beauty.

‍