Insurance for Medical Practices

Insurance Policies to Consider For  Medical Practices 

Professional Liability Insurance

This policy safeguards medical professionals such as doctors, lawyers and accountants from negligence, misrepresentation, malpractice, and other claims made by clients. General liability insurance policies for your medical practice usually do not compensate for such claims related to professional practices, which is why professional liability insurance is important. 

Coverage

Professional liability insurance is also known as malpractice insurance. It offers specialized coverage that is not provided under other policies. 

Professional liability insurance is generally arranged on a claims-made basis, which implies that the coverage is only applicable for claims made during the period for which it is valid. Here is an overview of a professional liability insurance policy’s coverage:

Incorrect Diagnosis

A misdiagnosis by a physician or bad advice from a physical therapist can deteriorate a patient’s condition. In this case, if a patient files a lawsuit against your practice and you do not have adequate coverage, you may have to pay for legal defense out of your own pocket. Professional liability insurance can compensate for legal expenses, such as judgments and settlements.

Accusations of Negligence

Physicians, nurses, home healthcare providers, and other healthcare professionals are rather vulnerable to negligence claims. For instance, a patient could assert that the cause of their bedsores was the nurse’s neglect. In case of a lawsuit, a professional liability insurance policy can take care of the legal expenses like that of hiring a lawyer.

Mistakes or Oversight

Even if a client’s claim is weak, an alleged mistake may still lead to an expensive lawsuit. For example, if poor imaging resulted in a misdiagnosis, the responsibility may lie with the radiology lab. Professional liability can cover the legal costs, such as court-ordered judgments and attorney’s fees.

Commercial Property Insurance

Among all insurance policies for your medical practice, commercial property insurance is vital. It protects against perils like theft, fire, and natural disaster. Factors like location and occupancy are crucial to arrive at the amount you need to pay for a commercial property insurance policy. 

This insurance provides coverage similar to property insurance for consumers. However, businesses are able to deduct the monthly premiums they pay for commercial property insurance as expenses.

Factors Considered

When calculating the cost of this insurance, the value of assets, such as a building, is the main factor to take into account. As a medical practice owner, it is, therefore, vital for you to take an inventory of all the physical assets located on the premises. Here is a list of all factors that are usually taken into account:

Location

Location plays a key role in determining the price you would have to pay for commercial property insurance. Buildings in areas with good fire protection usually cost less to insure than buildings far from the main city with low fire protection.

Construction

If your building is made from potentially combustible materials, you may incur higher premiums as compared to practices that operate in buildings made of fire-resistant materials. Certain additions to your building’s current structure may improve its fire rating, so make sure you have a discussion with an insurance provider if you are planning on remodeling the place.

Occupancy

Usage also has an impact on the fire rating. For instance, an office building may have a better rating than an auto repair shop or restaurant. In a building with several tenants, a single hazardous occupant can bring down the fire rating.

Fire and Theft Protection

This pertains to how well your building is protected against fire. Distance to the closest fire station and A fire alarm or sprinkler system in your office may be considered while determining the value of your insurance package.

Worker's Comp. Insurance



Even if you take all the steps necessary to provide a safe work environment for your employees, you cannot prevent the possibility of every accident. Workers’ compensation insurance takes into account the medical costs and lost wages due to work-related injuries and illnesses. 

Coverage

If your employees get injured at work or contract a work-related illness, workers’ compensation insurance offers medical benefits and compensates for lost wages. Here is a brief explanation of the coverage provided by the policy:

Medical Expenses

Workers’ compensation insurance covers the medical fees in case of a work-related injury or illness. This may include visits to the emergency room, relevant surgeries, and prescriptions.

Missed Salaries

If a worker needs to take a few days off due to a work-related injury or illness, this insurance policy can compensate for some of the lost income. For example, if an employee slips on ice and their injury requires a few days of medical attention, workers’ compensation policy can provide compensation.

Ongoing Care

At times, work-related injuries are so serious that they need more than one kind of treatment. For instance, if an employee injures their back while lifting a box of papers, medication and ongoing physiotherapy costs can be covered by your insurance provider.

Illness

The working conditions at your medical practice can expose your employees to allergens and harmful chemicals that can cause illness. In case of such an incident, this insurance policy can compensate for the required treatment or emergency care.