November 7th, 2017
Keeping a fledgling medical practice up and running follows the same principles as keeping any small business alive: putting the right people and protections in place to handle the expected and unexpected. Not only is it important to hire the right mix of doctors, nurses, allied health professionals, it’s also important to protect them—and your practice—with small business liability insurance and more.
Consider these six types of business insurance policies important for small medical practices.
Commercial Auto Insurance
When it comes to operating a medical practice, the line between personal automobiles and commercial vehicles tends to blur. Why? Because even a trip to the bank can put you at risk without appropriate coverage. As Medical Economics writes, “Staff members handling bank deposits, errands, and other activities away from your practice can give rise to liability in the event of an accident.”
Fully protecting drivers against liability and vehicles against damage often requires the owner to acquire extra umbrella coverage or a commercial auto insurance policy. That way, hitting the road doesn’t ramp up financial risk for your staff.
Cyber hacks and data breaches are on the rise. Patients trust your practice to keep their personal, financial and medical information safe. But what happens if you discover your electronic system has been compromised? One medical practice in Kentucky found out the hard way. 3,000 patients had their data (like name, age, Social Security Numbers and more) been stolen in a data breach. This incident was a HIPAA violation, so the practice also had to notify proper authorities.
While strong cybersecurity habits lessen the likelihood of a data breach, cyber insurance exists to lessen the fallout by covering associated costs like notifying affected parties and retaining legal help.
General Liability Insurance
When you rent or own a commercial space, you’re responsible for accidents and incidents that occur on the premises. What if an elderly patient shows up for a routine appointment and ends up stumbling over a chair leg sticking out in the walkway? What if your front door slams on a child’s hand as they’re entering the building ahead of their parent? A good general liability policy protects your practice against financial ruin in the face of a number of risks, including bodily injury and property damage to others.
You’ll also need to insure this commercial property and everything inside against accidents, natural disasters and human-led interference (like theft and vandalism). Bundling a property policy into your Business Owners Policy (BOP) serves that purpose.
Business Interruption Coverage
Of course, property damage isn’t the only concern here. If your practice experiences extensive damage and you have to cancel or move your appointments to a different physical location, how will you pay your employees and bills in the interim? According to the Insurance Information Institute, business interruption insurance covers:
- Lost revenue due to • Office closure after a covered event
• Ongoing expenses, like rent, utility bills and more
• Temporary relocation costs
Most states require workers’ compensation protection for small businesses employing full-time employees over a certain threshold—usually three, four or five. This type of insurance covers costs associated with employee injury or illness at work, helping employees get the care and recovery time they need and employers avoid expensive liability.
Starting or currently running a medical practice? CoverHound makes it easy to find small business liability insurance and additional types of coverage. Compare your policy options today!