Medical office insurance.

Just as your patients need to maintain insurance coverage, so should you. Your medical office comes with a unique set of risks and a specialty medical office insurance policy can keep you protected against a loss.

If you sat down and wrote a list of every possible risk your medical office faces, you might well shudder. Rather than letting it stress you out, consider specialized medical office insurance to set your mind at ease.

How can medical office insurance protect you?

Use the yellow hot spots and explore how medical office insurance can help protect against common risks.
Medical Office

Medical Malpractice / Professional Liability

Risk Factor

Doctors and licensed staff face a high risk of being sued by patients for such things as claiming a wrong diagnosis or treatment. Some high claims settlements could even force the office or practice to close its doors.

Solution

Professional liability insurance, commonly known as medical malpractice insurance, can protect a doctor and other licensed staff from a lawsuit that could become quite costly.

Medical Equipment

Risk Factor

Many medical offices unknowingly underestimate the costs associated with replacing medical equipment. It’s not uncommon to find out that there is not enough coverage to replace it, and sometimes it’s already too late.

Solution

With a business owners policy (BOP), most medical and general office equipment is included as business personal property and would be protected in the event of a covered loss. For specialized, high-valued equipment, a separate policy may be required. Your agent can help you to make that determination.

Medical Records Coverage

Risk Factor

What would you do if a fire destroyed your patient records? Maintaining medical records is important not only for patient care, but also in the case of a potential lawsuit defense.

Solution

Medical records coverage can be included within a business owners policy. This protects your practice and covers the cost of recreating your paper or electronic medical records in the event of a loss.

Business Income / Business Interruption

Risk Factor

What would you do if a fire impacted the operation of your practice? Or what if a pipe leak caused a system outage or extended downtime? These and other events can destroy your ability to treat patients and bring in revenue, which can have a major long-term impact on the viability of your practice.

Solution

Business interruption insurance compensates you for lost income if your practice cannot operate as normal due to damage that is covered under your commercial property insurance policy, such as fire or water damage. This type of insurance covers the revenue your practice would have earned, based on your financial records, had the incident not occurred. The policy also covers continuing operating expenses such as rent, electricity and ordinary payroll.

Needlestick Injuries

Risk Factor

With an estimated 800,000 healthcare workers suffering needlestick and sharps injuries each year, chances are you or someone you know has already been affected.

Solution

Workers’ compensation typically covers the cost for the employee’s initial blood test. That way, any resulting infections can be identified and treated much sooner. Employer’s liability insurance may also be considered to offer additional protection if your employee files a lawsuit. Check with your agent to see if your insurance coverage offers this type of protection.

Cyber Liability Insurance

Risk Factor

The Internet has spun a whole new web of liability exposures. E-commerce, social networking, cloud storage and other technologies bring great benefits to large and small practices alike. But with these benefits also come challenges, including protection of privacy, data and the financial information of your customers.

Solution

Cyber liability insurance protects your practice in the event of unauthorized access to electronic data or software within your network. It also provides coverage for spreading a virus, extortion, accidental release of personal identifiable information and resultant damage caused by a lost or stolen laptop or other mobile device. This coverage is quickly becoming more and more important as you embrace technology to help run your practice.

Regulatory Billing and Errors Insurance

Risk Factor

Have you ever faced billing error allegations by the federal government or private payers?

Solution

Errors and omissions liability insurance can provide reimbursement for defense costs, fines and penalties and shadow audit expenses incurred in billing error proceedings brought by government agencies, contractors and commercial payers. This is typically a specialized type of coverage, so it’s important to check with your agent to determine if your current coverage is sufficient to addresses this exposure.

Business Owners Policy (BOP)

Risk Factor

As a business owner, you've worked hard to build a solid practice. But what happens when the unexpected occurs? Are you covered?

Solution

A business owners policy is uniquely designed to protect your most important assets, including your practice, its continuation and your way of life. Discuss the details of this coverage with your agent to ensure that you're protected.

General Liability Insurance

Risk Factor

Practices are susceptible to many risks, such as claims due to bodily injury, property damage, personal injury and more.

Solution

General liability insurance is an absolute necessity for any practice. It provides broad coverage when you are deemed responsible and liable, and will also pay to defend any covered lawsuit or action, regardless of its merit. Additional limits are also available with a commercial umbrella insurance policy.

Employee Practices Liability Insurance (EPLI)

Risk Factor

On average, it's estimated that three out of five businesses will be sued by their employees. While there is nothing you can do to prevent someone from filing a lawsuit, you can limit the costs of defending a legal claim with proper insurance coverage.

Solution

Obtain employment practices liability insurance (EPLI) to protect your practice and its directors, officers and employees from alleged employment-related acts such as wrongful termination, failure to promote, discrimination and sexual harassment.

Workers’ Compensation

Risk Factor

If one of your employees receives an injury or becomes ill due to a work-related occurrence, you are required by law to have the proper coverage in place.

Solution

Workers’ compensation protects your employees in the event that a job related injury or sickness occurs during the course of their employment. This coverage is required by law, so be sure that your practice has it.

Crime, Fidelity and Fiduciary Liability Coverage

Risk Factor

What would you do if one of your trusted employees were to be found guilty of doing something dishonest or if you find that the funds have been mismanaged in your pension plan?

Solution

Crime and fidelity coverage is designed to provide coverage for employee dishonesty, forgery and depository, theft, destruction, disappearance and more. Fiduciary liability coverage also meets ERISA requirements to protect the funds in your pension plan.

Spoilage – Perishable Medicines and Medical Supplies

Risk Factor

Your healthcare practice’s refrigeration system may suffer a mechanical breakdown which could cause the supply of vaccines on hand to spoil.

Solution

Spoilage coverage can be provided as an added endorsement to your business owners policy. This type of coverage will protect your practice from large costs associated with perishable medicines and supplies.

Commercial Umbrella Policy

Risk Factor

What happens when your practice faces a large liability loss that exceeds the basic limit of your standard policy?

Solution

A commercial umbrella insurance policy provides high limits of insurance, typically between $2,000,000 and $10,000,000. Coverage is extended over your general liability insurance, workers' compensation and business auto insurance. It provides a great safety net and helps ensure your practice is well protected.

Naturally, such insurance can include more common business risks such as damage to property, personal injury and liability for visitors and loss of income if your office is temporarily unusable. However, it also includes some specific risks for the medical profession.

For example, if you had an electrical failure or a mechanical breakdown, medical goods such as vaccines could spoil. A data breach or computer hack could be particularly devastating given the sensitive information you store. Paper records could be costly to replace after a fire. All of this can be covered.

Don’t make any assumptions about a policy, however. Medical office insurance is highly unlikely to cover medical malpractice and other liabilities relating to the advice and treatment you provide, so you’ll need to get such coverage separately.

For more information on medical office insurance, contact us today.

Let’s discuss your medical office insurance.

One of our insurance advisors will reach out to you to review your information and present you with the appropriate medical office insurance solution. There’s no obligation, just good-old-fashioned advice.
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VW Brown Insurance Service offers comprehensive medical office insurance.