From medical malpractice to workers’ compensation, learn how to understand and purchase the right insurance for your health care business. Check out our comprehensive articles and resources to discover how you can protect and grow your business.
Health Care Business Insurance Basics
Types of Health Care Business Insurance
Who needs health care business insurance?
Business insurance is a critical and important part of any health care professional’s risk management strategy, and many types of insurance may be required by your local state laws. Whether you run your own private physician practice and are exposed to myriad risks, from medical malpractice to premises liability, or work as a home health care provider and are looking for coverage for your work vehicle, there are a variety of business insurance policies and insurers that can suit your needs.
If your business meets any of the following criteria, you should consider investing in business insurance:
- You provide medical advice or services
- You own or lease commercial space
- You host members of the public on your business property
- You travel to your clients’ homes or offices
- You own or lease a company vehicle or use your own personal vehicle for your business
- Your business owns valuable property, such as medical equipment
- You accept payments via a health insurer or Medicare or Medicaid
- You employ others
Health Care Business Insurance by Profession
Why is health care business insurance important?
Malpractice lawsuits are common and costly.
Benefits: Insurance against medical malpractice lawsuits is a critical part of running a health care business. By carrying this insurance coverage, you can protect your business from lawsuits, which can be incredibly expensive. Even if you win a suit, the time and money you’ll need to outlay can be severely taxing on your business. Business insurance can provide the protection you need to comfortably address any lawsuits and keep your business financially secure.
Risks: When you’re working with something as important as a patient’s well-being and health, even small errors or mistakes could lead to patient injury. If negligence on your part results in a serious ailment, or even death, the resulting suit against your business could be financially devastating.
Accidents can and will happen.
Benefits: If your business owns or leases commercial property where you see patients and clients, having the right insurance coverage to protect against bodily injury or property damage can be a lifesaver. If a disaster occurs and your property is destroyed or if a patient injures himself on your property, business insurance can provide funds to address damages and lawsuits.
Risks: Without business insurance coverage, you may be on the hook for any damages to your business property or any lawsuits related to third-party injury. While minor accidents may be addressable without insurance, you cannot predict when or if a serious disaster or accident may occur. Just one unexpected event could mean financial disaster for your business.
Certain types of business insurance may be required in your state.
Benefits: Health care professionals may be subject to local laws requiring them to carry certain types of coverage, which can include medical malpractice insurance and workers’ compensation insurance. Even if your business is not obligated to carry coverage by law, it is wise to secure coverage anyway. Medical malpractice insurance can protect your business from the financial consequences of lawsuits claiming medical negligence and wrongful practices, and workers’ compensation insurance can provide medical and financial benefits for employees who are injured on the job.
Risks: Without liability insurance, your organization may be open to financial loss should a third party or employee get injured or sick as a result of your business activities. Moreover, multiple accidents or lawsuits could lead to financial losses that ruin your business. If coverage is required by law, defying these requirements could land you in legal trouble resulting in penalties, fines, and in some cases, imprisonment.