Business Health for Healthcare Businesses
How Insurance Keeps You Strong

Chapter 1: How Business Insurance Protects Allied Health Practitioners
Part 2: Which Insurance Policies Meet the Needs of Sole Proprietors and Independent Healthcare Practitioners?

First things first: let's recap what we mean by "sole proprietors" and "independent contractors." According to the U.S. Small Business Administration New browser window icon., a sole proprietorship is an unincorporated business owned and run by you and only you. There is no distinction between you and your business, meaning you're entitled to all profits your practice makes and are responsible for all your business's debts, losses, and liabilities.

The SBA defines an independent contractor as a person who has control or the right to control both the work done and the manner and means in which it is performed. There are several other factors that help determine this status, but as a rule, if you set your own hours, use your own equipment, control the manner of the work, and have the ability to hire you own employees, you are an independent contractor.

So as a medical practitioner who is an independent contractor or the sole owner of a private practice, you may have fewer insurance obligations than business owners with employees. For example, because you're self-employed, you don't need Workers' Compensation Insurance, which pays for medical bills and foregone income if your employee suffers an occupational injury.

But some coverages are essential for self-employed medical professionals. Your line of work, the scope of your practice, and where you live will determine which insurance policies you need. Take a look at the following general coverage types for self-employed allied health professionals:

Next: General Liability Insurance for Sole Proprietors and Independent Contractors

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