NYC Insurance Blog

Medical Office Insurance Guide; Everything You Need to Know

Although some people think physicians and medical practitioners only need malpractice coverage, that is not the case. There are numerous risks medical practitioners face besides being sued by patients. This article will help you understand more about medical office insurance.

The Risks Medical Professionals Face

The risks medical professionals face have increased over the past two decades. The average cost of a claim is approximately $100k, making it difficult for medical professionals to become effective. According to recent studies, 7 out of 100 doctors are sued by patients and face lawsuit claims. The risks medical professionals encounter include:

I. Data Breach 

Doctors need to protect the patient’s data at all costs. However, cybersecurity is a serious problem facing most organizations. Typically, patient information is safeguarded by the Health Insurance and Portability and Accountability Act (HIPAA), but breaches occur occasionally. Since hacking, device theft, and phasing are the leading causes of data breaches, medical offices should have top-notch equipment, programs, and an insurance safety net. 

II. Medical Malpractice

It is common to deal with unhappy or frustrated patients. A patient can file a lawsuit claiming a health professional was negligent or unprofessional. If this happens, the medical office or practitioner can deal with a case incurring immense defense costs and settlements. Besides the settlement costs, the practitioner’s reputation will be in jeopardy. 

III. Property Damage 

Medical offices depend on equipment such as computers and medical machinery to operate. If there is an outage, it can cause severe losses. If the losses are immense, the facility can be closed temporarily, causing inconveniences and huge losses. Although it is impossible to evade a natural disaster, having medical office insurance can help repair or replace damaged property to continue offering medical services. 

IV. Employee Lawsuits

Besides patient lawsuits, medical offices can face employee lawsuits depending on the current circumstances. Ill-defined procedures and outdated policies are some of the reasons employees file lawsuits. If you don’t want to incur hefty costs with these claims, medical office insurance is a good investment. 

We can help get you a quote on many of these types of policies, give us a call today!

What is a Medical Office Insurance?

Also known as medical practice liability insurance or malpractice insurance, medical office insurance helps medical offices mitigate risks. The coverage will cover any legal fees and associated costs if you encounter a professional loss. Since insurance coverage has different policies, medical practitioners must choose policies that suit their needs. Here are some of the policies:

• General liability insurance (GL) helps cover property damages or injuries caused to a third party, including slips and falls. 
• Errors & Omissions insurance (E&O) – it helps safeguard your professional services. For example, if a third party files a lawsuit claiming financial loss due to your professional services, the E & O insurance policy can provide a defense. The policy offers coverage against a loss due to a claim of an error, omission, or negligent act by the insured party. 
• Business property insurance is one of the popular policies because most organizations own physical property such as computers, buildings, and furniture. The policy helps you repair or replace the property in case of damages. 
• Commercial auto insurance – the policy helps cover vehicles used for business purposes. The insurance covers theft, vandalism, collision, and bodily harm. 
• Umbrella insurance – if you are looking to increase your liability limits, umbrella insurance is the best option. All insurance policies have coverage limits; therefore, umbrella insurance can help you cover one or several policies to increase the liability limits. 
• Workers’ compensation insurance – if an employee sues a company for injuries sustained while working, this insurance policy can help cover all the medical costs, recovery, lost income, and/or death benefits. 
• Surety bonds – if you fail to perform specific acts within a specified period, surety bonds provide monetary compensation to the third party. 
• Employee practices liability (EPL) insurance – if an organization is in the middle of an employee dispute, EPL insurance comes into play. Regardless of how good or professional you are, some employees will file lawsuits claiming wrongful termination, sexual harassment, discrimination or retaliation, failure to employ or promote, among others.
• Crime insurance – the insurance covers tangible property, security, and stolen money. If you incur losses related to burglary, theft or robbery, or money or property, crime insurance offers coverage. 
• Cyber liability insurance – the insurance covers liability to you and others in case of a cyber-attack.
• Equipment breakdown coverage – this coverage is essential because it protects against the costs related to equipment breakdown. The coverage pays for repairs or replaces the equipment. You will not incur any losses related to the equipment breakdown. If you are looking to safeguard your healthcare services, consider investing in equipment breakdown coverage. 

Not sure which coverage your practice needs? Do not be caught underinsured, give us a call!

Who Needs Medical Office Insurance 

Working in healthcare comes with many risks that other professionals do not have to worry about. Healthcare providers deal with patients every day and handle sensitive information, which can cause potential problems/issues. However, with the right insurance policy, healthcare providers can mitigate these risks. As per the risks mentioned above, besides physicians, other organizations and professionals need medical office insurance. Here is a list of those who need medical office insurance coverage:

1. Physical therapists 
2. Dentists 
3. Chiropractors
4. Massage therapists
5. Optometrists
6. Medical Practices
7. Acupuncturists 

Remember, securing a customized insurance plan is crucial to cover possible risks effectively. Even if your type of practice is not listed here, find out what kind of insurance your office needs!

How Much Does Medical Office Insurance Cover?

Your business details determine the cost of an insurance premium. Some of the factors that can determine your medical office insurance cover include specific risks, patient base size, and geographical locations. Thorough research is required to determine the policies you need to offer adequate protection. 

If you do not know where to start or policies to include in your medical office insurance coverage, it is advisable to seek help from an expert. Numerous insurance agents can offer sound insurance advice after considering certain factors. You do not have to take risks or waste a lot of time and money in a lawsuit, while medical office insurance can help you mitigate the risks.