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7 Things to Know before Buying Insurance for Your Healthcare Practice

When you're shopping for business insurance policies to protect the healthcare business you've built, you'll quickly discover there is a veritable sea of choices — and no two policies are created equally. While the abundance of choices may at first feel like a gift, the amount of differing information and offers can become overwhelming. How can you be sure you can trust an insurance provider? Do you work with an insurance agent or go it alone? How can you tell the difference between a hyperbolic sales pitch and a legitimate coverage offer?

Then there are the nitty-gritty details to consider when hunting for business insurance: What insurance does your healthcare business really need to protect you from liability and to reduce your exposure to risks? Which types of coverage does your line of work require — both out of a need to safeguard your business and to comply with state laws?

Before the options and considerations overwhelm you, know that your quest for adequate coverage doesn't have to feel like going down the Internet rabbit hole. At insureon, we offer a streamlined, simple way for you to receive the coverage that meets your business insurance needs. You can start by reading on to discover the seven things you should consider before you sign off on a policy.

Business Insurance Tips for Healthcare Professionals

Healthcare professionals understand that it takes a comprehensive business protection plan to ensure the success of their practice. From physicians and dentists to art therapists and nutritionists, healthcare providers work to improve the quality of their patients' lives. No matter your level of experience or the integrity of your business practices, your industry may be exposed to many situations outside of your control — and sometimes, missteps can be detrimental to your patient's wellbeing. That's why business insurance is a necessary investment to protect your practice and yourself should a liability lawsuit arise.

As you search for the appropriate business insurance coverage for your healthcare practice, consider these seven tips for finding a policy that meets your needs and minimizes your exposure to risks outside of your control:

1. Know the risks your business faces before you look for coverage.

1. Know the risks your business faces before you look for coverage.

Before you type anything into your Internet search bar, first you'll want to reflect on what you actually need to protect your business. You may find it helpful to consider the worst-case scenarios in every aspect of your business. These vulnerabilities are where your risks lie and can cause even the best-run businesses to become entangled in an expensive, drawn-out lawsuit. You'll also want to assess which assets are integral to running your business. Consider the risks involved with treating patients. You'll also want to account for the occupational risks your staff may face, such as handling medical equipment and supplies, being exposed to hazardous materials, and incurring repetitive motion injuries. It's important to keep in mind that an accident such as a slip or strain could result in lawsuits, too — no matter how innocuous the injury may seem. Once you have thoroughly investigated your exposure to risks, you'll know what coverage you'll need from your insurance policy.

When issuing your business an insurance policy, your carrier will also assess your exposure to risks in order to determine the level of risk it is willing to cover. Ultimately, your premium (what you pay for coverage) will be based on these risks, which is why it's important to know and prioritize the protection you need. Keep in mind that as your business grows, your insurance needs may change. Many healthcare professionals reassess their coverage yearly in case they need to adjust their policies to account for their practice's expansion.

2. Work with A-rated insurance providers.

2. Work with A-rated insurance providers.

When it comes to business insurance, you'll quickly notice that policies can vary wildly from carrier to carrier. And an exaggerated sales pitch might even ring true if you're not entirely sure how business insurance works. Your best course of action when shopping online for insurance for your healthcare business is to work with an insurance agent that has relationships with top-tier insurance providers. Because state governments regulate the insurance industry and license insurance brokers, you can consult your state's directory to make sure your agent is properly licensed.

Working with a reputable insurance agent — such as the insurance experts at insureon — can save you the challenge, stress, and time of sifting through providers on your own. It also save you the guesswork of determining whether the provider is trustworthy. Insurance agents that maintain relationships with the top carriers in the industry can secure multiple quotes from credible providers and send them your way for comparison.

When you work with insureon, our licensed agents make your life easier by sending you quotes from A-rated insurance carriers whose products match your business needs. If you're ready to save yourself time and energy you could be using to treat your patients, talk to one of our licensed insurance agents today!

3. Prioritize coverage over cost.

3. Prioritize coverage over cost.

As a small-business owner, it's understandable that you may not have deep pockets and oodles of disposable income. However, you are only acting in the best interest of your healthcare practice when you consider business insurance as a necessary business expense rather than a luxury. So while it may be tempting to settle on the cheapest policy you find, these policies may end up costing you more than your business can withstand by not offering enough coverage in a covered claim.

You'll also want to consider if the policy is cheaper because the provider has built an unfavorable reputation of slow payouts or sketchy introductory premiums that skyrocket later on. When in doubt, always prioritize the coverage and the reputation of the provider over the cost of your policy. Your insurance agent can guide you to a more cost-effective choice offered by a reputable provider.

If cost is a major concern for your healthcare business, you want to look into whether your business is eligible for a Business Owner's Policy (BOP). This broad policy bundles General Liability Insurance and Property Insurance together and usually at a lower premium. Ask your insureon agent to see if your business is eligible for this reliable coverage option.

4. Work with an insurance agent that knows the healthcare industry.

4. Work with an insurance agent that knows the healthcare industry.

As a healthcare professional, you already know the value of expertise. That's why you'll want to put your business protection in the hands of an expert who knows your industry and can help ensure you receive coverage that adequately safeguards your business against its unique risks. Industry experts can help you find appropriate, affordable coverage thanks to their established relationships with top-rated carriers that offer products specifically for your business.

Typically, healthcare business owners will want to carry the following types of insurance:

5. Read the policy thoroughly.

5. Read the policy thoroughly.

Every policy comes with its own set of exclusions and limits. That's why it's important to know the precise conditions of your policy so there are no gaps in your coverage. Each policy differs from carrier to carrier, and you don't want to be surprised when you file what you thoughts was a covered claim, only to find your policy does not include that protection. If you're uncertain what your policy entails, be sure to ask your insurance agent for help. You need to make sure you are agreeing to terms you clearly understand and accept before signing off on your policy.

6. Consider the deductible.

6. Consider the deductible.

Each business insurance policy comes with a deductible, which is the amount you agree to pay in the event of a covered claim before your coverage kicks in to pay the rest (up to your policy limits). At first, a policy with a higher deductible may seem more appealing since it is usually paired with a lower premium. However, you could be financially burdening yourself in the long run with this policy. Policies with a lower deductible may come with a higher premium, but they may also save your business from extreme financial hardship in the event of a covered claim. The takeaway here is to not agree to a deductible that will put your finances at risk. When considering two similar policies with varying deductibles, be sure to assess how frequently you might actually incur a covered loss, and how much of that loss you can bear on your own. The golden rule is that your deductible should never surpass the amount of loss you could comfortably spare out of pocket.

7. Overshoot your coverage needs.

7. Overshoot your coverage needs.

To make sure your business can weather the financial catastrophe that the litigation process can be, it's often wise to overestimate your coverage needs. Should your business be sued for an injury that occurred on your business premises, the expenses add up surprisingly fast — even in a meritless lawsuit. For example, between attorney's fees, docket costs, and witness fees, you could easily need coverage for thousands of dollars. If a settlement is awarded, any amount past your policy limits will be your responsibility. You may consider purchasing Umbrella Liability Insurance for more coverage because a single policy can extend your General Liability and Employer's Liability policies by increments of $1 million.

Insurance Policies Tailored for Your Healthcare Practice

The Healthcare Specialist agents at insureon have a wealth of experience creating custom policies for healthcare professionals. Because we understand the unique risks of your business, we can streamline the process of securing you the coverage that is appropriate for your business protection needs. When you're ready to get started, simply take a few minutes to get a quote from our A-rated insurance carriers today!

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