From primary care centers and behavioral health offices to dental practices and imaging facilities, medical offices have specific insurance needs that differ from non-medical businesses.
Coverage for medical facilities can still vary drastically, depending on what services are provided, the unique exposures the business has, and what state the office operates in.
We have specialized in medical office insurance since 2007.
The following are the types of insurance that may be required by medical offices. These may be required by their landlords, vendors, or even by law in the state that they operate in.
What’s Usually Covered
If a third party, such as a patient or visitor, sustains bodily injury or property damage on your premises, your general liability coverage may apply.
General liability coverage may also extend to small personal or advertising injury claims.
⛔ What Isn’t Usually Covered
General liability coverage usually won’t get involved in professional service claims, auto accidents, or employee injuries.
Claim Example: A patient suffers injuries from an extension cord in the waiting room, which causes them to break a bone. Your general liability insurance may be responsible for the claim based on the terms of your insurance policy.
💡 Is patient dissatisfaction covered under GL?
Typically, no. Dissatisfaction of a patient regarding treatment may instead be responded to by professional liability or medical malpractice.
A package of property insurance, general liability, and business interruption insurance is commonly referred to as a Business Owners Policy or BOP.
What’s Usually Covered
Although the extent of the coverage of a BOP may vary, it may help in the following: loss of on-premises property, third-party claims for damage/physical injury, and loss of business income as a result of a covered event. BOPs do not cover errors in malpractice.
Claim Example: Equipment is permanently damaged due to the unexpected breaking of a water line. This causes a temporary business closure to replace the equipment. A BOP insurance policy might intervene in a property insurance claim and business income loss, depending on the cause of the loss.
💡 Will a BOP provide malpractice coverage?
Not usually. This might be covered by malpractice insurance. See below.
What’s Usually Covered
Malpractice insurance, also sometimes referred to as medical malpractice coverage in this case, may cover professional service-caused harm, typically on a claims-made basis.
Claim Example: The wrong diagnosis is given to a patient, which results in their condition worsening and necessitating further appointments for extra treatments, plus proper diagnosis.
💡 What does “claims-made” coverage really mean?
Claims-made coverage usually means the policy you currently have active is the one that may respond when a claim is made and reported, regardless of when the claim actually occurred.
💡 Can I change malpractice insurance carriers without having a gap in coverage?
Maybe, but you need to coordinate retro dates/prior acts and tail coverage. Do not cancel or replace without confirming continuity in writing.
What’s Usually Covered
Workers’ comp is typically required for most businesses in most states if they have employees, depending on the type of employees and state laws. Work-related injuries or illnesses of employees may be covered by workers’ compensation insurance.
Claim Example: A sharps incident results in a work-related injury to a medical team member. Your workers’ comp insurance may be applicable, depending on the underlying facts of the claim.
💡 If I only hire part-time staff, do I still need workers’ comp?
Yes, workers’ compensation may still be required if you only hire part-time employees, depending on employee classifications and state laws.
These vary by carrier and policy form, but commonly include or limit:
Will an audit result in a premium change?
Many policies are auditable (e.g., workers’ comp, some GL). Premium may adjust based on actual payroll/revenue/classifications.
Does a BOP cover business interruption?
Often it can, but it’s usually tied to a covered property loss and has conditions and waiting periods.
Is cyber insurance necessary if I am HIPAA compliant?
Compliance and insurance are not the same thing. HIPAA regulations may require notifications following certain breaches of unsecured PHI, but cyber insurance can help with expenses and services.
How can I insure vaccine/medication refrigerators?
Usually through property insurance, as well as equipment breakdown and/or spoilage endorsements (depending on availability). Ask how temperature-sensitive inventory is handled.
At USA Business Insurance, we strive to help medical facilities both big and small get the coverage they need to legally, and safely, operate.
We can help you identify your exposures and coverage requirements, then help you determine the types of insurance that would benefit you best.
(888) 900 0205