Small Business Insurance
for Allied Health, Fitness, Mental Health and Medical Professionals
The healthcare industry has advanced rapidly, and the money at stake has grown just as quickly. Physicians, nurses, and medical offices of all stripes now face the potential of million-dollar malpractice claims and other lawsuits that could destroy the practice they've built from the ground up.
Fortunately, small business insurance can cover lawsuit costs, potentially shielding you from expensive legal burdens. Healthcare is a huge industry with many niche providers, making it hard to generalize about your insurance requirements. Let's look at the insurance policies a typical healthcare provider might need.
Which Insurance Policies?
Which Insurance Policies do Allied Healthcare Businesses Need?
Each small business insurance policy covers a different slice of your risk. Workers' Comp covers workplace accidents, while Malpractice Insurance covers misdiagnoses and medical errors. It can seem daunting to keep track of what each insurance policy covers. But we've made it simple. Below you'll find a quick description of common healthcare business insurance policies and an explanation of when and why you'll need them.
General Liability Insurance
General Liability Insurance for Healthcare Practices
General Liability Insurance protects you from the cost of slip-and-fall lawsuits, accidental property damage, and other third-party injury lawsuits.
Nearly every business has General Liability Insurance because there's always a chance someone gets hurt on your property. But this coverage is especially important for allied healthcare providers because of all the "foot traffic" you'll have as patients, families, and deliverymen come through your doors.
If you're sued over an accident, injury, or property damage, General Liability Insurance can cover…
- Lawyers' fees.
- Miscellaneous court costs and legal fees.
- Settlements to end a lawsuit quickly.
- Lawsuit judgments and damages you may owe the party suing you.
It's worth pointing out that GL only covers accidental injuries, not those that result from treatment mishaps — these are covered under Malpractice Insurance.
Professional Liability / Malpractice Insurance for Allied Healthcare Professionals
You've heard a lot about the risks of malpractice lawsuits. A patient could allege you made mistakes while treating them, failed to diagnose an illness, or otherwise faltered in your duties. Malpractice cases aren't always clear-cut. In these situations, the physician isn't necessarily to blame, but they could still face a costly malpractice lawsuit.
You'll need to invest in insurance to cover the cost of lawsuits. Malpractice Insurance (also called Professional Liability or Errors and Omissions Insurance) can pay to defend your practice from malpractice lawsuits regardless of whether you're at fault.
Property Insurance / BOP Coverage for Allied Healthcare Professionals
Healthcare practices need Property Insurance — your office is filled with costly medical equipment, furniture, supplies, and technology that you want insured. Even something as small as a stethoscope can cost over $100. A Property Insurance policy can cover your business when its medical supplies and property are…
- Destroyed in a fire.
- Damaged in a covered weather event.
Medical offices can get Property Insurance on its own or bundle it with General Liability in a small business insurance package known as a Business Owner's Policy (or BOP). Insurance companies offer a discount to small-business owners who sign up for Property and General Liability together.
Cyber Liability Insurance
Cyber Liability Insurance for Allied Healthcare Businesses
Cyber Liability Insurance (also known as Cyber Risk or Data Breach Insurance) is a relatively new addition to the world of business insurance. This coverage is designed to help healthcare companies respond to and clean up a data breach. Cyber Liability Insurance includes coverage for…
- Contacting patients about a breach.
- Hiring IT experts to investigate where a breach occurred and fix the leak.
- Retaining PR and crisis management consultants.
- Offering credit monitoring services to patients whose data was lost.
While new technology has brought unparalleled efficiency and information-sharing to healthcare businesses, it's also exposed providers to data breach risks and cyber liabilities. Many healthcare companies have to hire tech experts to make sure their IT meets HIPAA and HITECH standards.
Some Cyber Liability policies pay for HIPAA fines, though many policies don't offer this coverage. Always make sure to check with your insurance agent to see what HIPAA-related coverage is included in your policy.
Workers' Compensation Insurance
Workers' Compensation Insurance for Allied Healthcare Practitioners
Workers' Compensation Insurance (also called Workman's Comp or Workers' Comp) protects your medical practice from the cost of employee injuries and illnesses related to work. Workplace injuries are common in healthcare. Nurses develop latex allergies. Massage therapists suffer repetitive motion injuries in their hands.
When an employee is injured at work, Workers' Comp can cover…
- Medical costs
- Physical therapy
- Some lost wages.
Does your healthcare business need Workers' Comp? Check your state Workers' Comp requirements because most employers are legally required to have this coverage.
Umbrella Insurance for Allied Healthcare Companies and Medical Offices
When your healthcare business is faced with an extremely expensive lawsuit, Umbrella Insurance (also called Excess Liability Insurance) can help you pay the legal costs that exceed your insurance limits. Say you have a $1-million General Liability Insurance policy, but you're sued for $1.5 million when a patient suffers a spinal injury after falling down your stairs. Umbrella Insurance can cover the $500,000 difference.
By investing in Umbrella Insurance, you can get extra insurance (typically in million-dollar increments) that you can use for any of these policies:
Umbrella doesn't offer extra coverage for Malpractice Insurance. If you need more Malpractice coverage, make sure to increase your limits.
Reducing HIPAA Violations
Tips for Reducing HIPAA Violations
Check out our eBooks and articles to learn about avoiding HIPAA violations and reducing your cyber liability. Those resources will offer more thorough advice than we can include here, but here's one tip for avoiding HIPAA violations. You can be liable for your contractor's mistakes, so make sure any third parties you work with sign Business Associate Agreements that outline their HIPAA responsibilities.
Property Valuation and Insurance Coverage
When you sign up for Property Insurance, you'll have to figure out how much your property is worth and how much coverage you'll need. You'll have two options. You can value your property and medical equipment for its current depreciated value (Cash Value) or the cost to replace it (Replacement Value). Ask your insurance agent to make sure you have the right coverage.