As a healthcare professional, you are no stranger to the importance of being thorough and careful in all your work. After all, in your line of work, a patient's health depends on your careful analysis and proper treatment. So when it comes to protecting your healthcare practice, you don't want to risk putting your business in jeopardy, either. However, plenty of health professionals have been led astray by the prevalent misinformation about their business insurance needs. Even the most careful healthcare providers may inadvertently leave their practices vulnerable to risks.
For example, without adequate Malpractice Insurance, one professional negligence claim from a patient could be enough to bankrupt your small practice. Even after your business assets have been collected, you could be leaving your personal assets at risk, too, if you still owe money for the settlement.
Read on to learn the facts about business insurance and how you can protect your healthcare business from unexpected financial upheavals.
Healthcare Practice Insurance Myths Busted
The age of the Internet is a true asset for small business owners, but it can also lead to mixed messages, especially when it comes to business insurance. A quick search will show you there's plenty of inconsistent information about the types of insurance your healthcare practice needs, what your insurance covers, and which are the "best policies" available. Without accurate information about business protection, you may be opening your business and your personal assets to risk.
To make sure your business protection plan is built on solid information, take a look at these six most pervasive myths about business insurance for healthcare professionals.
Business Insurance Myth #1: "If I am sued, I'll simply close my doors."
Most people mistakenly think that closing their business can protect them from a costly court settlement if they are sued and found liable. Unfortunately, most courts do not care whether or not your business is still operating when they render a decision. Should your business be found liable for the claim brought against it, you could be required to cover settlements or judgments with your personal assets. No matter what you've heard, it's important to keep in mind that you don't have to have millions of dollars or expensive business assets to require business protection.
Business Insurance Myth #2: "I have decades of experience, I've never been sued, and I treat my patients with exceptional care. My patients won't sue me."
The fact that you haven't been sued doesn't mean that you never will be. No matter your experience, the quality of your care, or your impeccable record, a lawsuit is always possible. Most malpractice suits have very little to do with the quality of care or treatment — it is more a reflection of the patient's attitude about what is outside of their control. If a patient sues your practice for professional negligence and you don't have adequate coverage — or any at all — you will be responsible for paying the court expenses out of pocket. Without Malpractice Insurance, even a meritless lawsuit can result in your healthcare practice paying hundreds of thousands of dollars just to defend yourself in court.
Business Insurance Myth #3: "My healthcare practice is too small to need its own insurance policy."
A business is never too big or small for a business protection strategy. Insurance coverage protects your business from liability, disasters, and unpreventable risks. A thorough risk management strategy that lacks business insurance won't protect your practice from financial ruin if you are sued. Additionally, consider that a tornado or fire could destroy your office and all your medical equipment, computers, and data. Without Property Insurance, would you have the funds to replace these items so you can properly treat your patients once again?
Business insurance is designed to help your healthcare practice weather these unexpected and uncontrollable situations so you can quickly get back on your feet after a serious setback. And because many business policies these days are tailored for entrepreneurs and small startups, you can typically find a very affordable policy that offers broad coverage. Talk to an insureon agent for assistance in determining the policies that accommodate your business's needs.
Business Insurance Myth #4: "I have a Malpractice Insurance policy, so I'm completely covered."
Regardless of how high your Malpractice policy's limits may be, a single policy — no matter which policy — will not "fully cover" your business. Malpractice Insurance is a necessary component of your business protection plan, but there are other considerations to make. For example, your Malpractice policy will not cover your business for lawsuits related to incidents or injuries that a third party experiences on your business premises. You would need a General Liability policy for that protection. Additionally, neither of these policies will offer compensation for injuries your employees sustain or the lawsuits they may bring against your practice. Those claims are covered by most Workers' Compensation policies.
Because exclusions vary from carrier to carrier, your most reliable course of action is to work with an insurance provider you trust and to know exactly what your policy does or doesn't cover. Read your policy's exclusions, and when in doubt, contact an insureon agent for advice.
Business Insurance Myth #5: "Business insurance doesn't fully cover your business anyhow, so there's no point in investing in it."
Taking the requisite steps to protect the business you built is never a futile effort. Depending on your policy, your business coverage can be quite extensive, too. The larger issue at hand is that business insurance is not an either / or situation. It's always in your best interest to try to take precautions and preventive measures when you can. And with the proper coverage, business insurance tends to be a small price to pay for the millions it could offer in coverage if your healthcare practice is sued. When you work with insureon, you have access to A-rated insurance policies at competitive prices. Contact an insureon agent to discuss your options today!
Business Insurance Myth #6: "My staff isn't exposed to many risks. I probably don't need Workers' Compensation coverage."
Even though an office job may seem like a safe place to work, there are always risks that come with performing work. For instance, if your small practice requires your physician's assistants to handle sharps, they could be pricked with an infected needle. Your receptionist could develop repetitive motion injuries, such as carpal tunnel syndrome, from typing on the computer all day. In both cases, your employees could potentially sue your business for their work-related injuries. Depending on where you live, your state may require you carry Workers' Compensation coverage if you have any employees at all. This coverage can provide your business with legal fees should an employee sue for work-related injuries, the cost of immediate medical attention, and your employee's foregone income while they were recovering.
Protect Your Healthcare Practice
No matter if you're a physician, dentist, acupuncturist, dietician, or optician, the insurance experts at insureon can help you determine the types and amount of coverage that can safeguard your business. If you're ready to give your healthcare business the security it needs to treat your patients and truly thrive, contact an insureon agent today.