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?
Umbrella Liability Insurance for Sole Proprietors and Independent Contractors in Healthcare Fields

Umbrella Liability Insurance (or Excess Liability Insurance) isn't like the other plans we've discussed so far. This policy can be thought of as an "extension" of your other policies. For one low-cost premium, your Umbrella policy can add an additional cushion to multiple underlying liability policies in increments of $1 million. You may consider an Umbrella policy if you want to…

  • Boost your coverage. You can put your Umbrella benefits toward expenses covered by your General Liability Insurance and your Employer's Liability Insurance (part of your Workers' Compensation plan, if you have one!), if you face a lawsuit whose costs exceed those policies' limits.
  • Save money. An Excess Liability policy often costs only a few hundred dollars per year and offers additional coverage in one-million-dollar increments.
  • Strengthen your business protection plan. Higher coverage limits mean more security if you are ever sued in a General Liability or Employer's Liability suit.

How does Umbrella Insurance work? Consider this example.

Let's say that a visitor enters your chiropractic office and catches his foot on your welcome mat. From the fall, the visitor suffers a head injury and has to miss six months of work. He sues your practice for the medical costs, his lost earnings, and pain and suffering. The court finds in his favor, and also decides you have to pay his legal fees. Altogether, the bill comes to $1.2 million, past your General Liability Insurance's limits ($1 million). An Umbrella Insurance policy will cover the additional $200,000 so you don't have to dip into your personal finances.

A final note about Umbrella Insurance: this policy, though versatile in many ways, cannot be applied to your Malpractice Insurance. If you're looking for a cost-effective way to raise your Malpractice limits, be sure to get in touch with your insureon agent for advice.

Next: Health Insurance for Sole Proprietors and Independent Contractors

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