Opening your own medical practice is an exciting venture. You get to lay the ground rules on how you want to run your practice. While it’s undoubtedly exciting, opening a medical practice requires much thought. If you recently acquired an independent practice, there are a few things you should know before you open your doors to the public. It’s imperative that you protect your business from certain risks, like cash flow issues or lawsuits that may arise in the future. Applying for a medical practice loan is a great way to deal with cash flow problems, but for other concerns, having the right type of insurance can protect your practice from certain liabilities.
A single lawsuit is enough to wipe out your practice or revoke your medical license. Medical insurances are necessary to protect you, your staff, and your practice from lawsuits and catastrophic events. There are different types of insurances depending on your needs. Here are the top five types of medical insurance you don’t want to overlook:
1. Medical Malpractice Insurance
A medical malpractice insurance is a must-have for medical practices. Also known as professional liability insurance, this type of insurance protects medical practices from legal consequences in the event of a lawsuit from a patient. If your patients claim negligence or harm due to your practice’s incompetence, medical practice insurance can help cover the costs of legal defense and settlements. The extent of your medical malpractice coverage will depend on two major factors: the geographic location of your practice and your medical specialty.
2. Property Insurance
Opening an independent medical practice is a lifelong dream for many medical practice owners. With that said, you most likely spent a lot of time and money to acquire the right medical supplies, equipment, furniture, and other necessary materials to make your practice more inviting to potential patients. However, natural disasters can happen anytime. Earthquakes, floods, and storms can easily wreck your medical practice. The damage often costs thousands and without the right insurance, you may need to pay for the renovations out of pocket.
Property insurance protects your property from natural disasters, fire, or theft. This type of insurance covers the physical building or your practice, as well as the office furnishings, computers, inventory, and other materials that are vital to the operation of your practice. Whether you own or lease the property, make sure to have it insured.
3. Business Overhead Expense Insurance
If an injury or an illness prevents you from practicing medicine, disability insurance can be your source of income for the meantime. However, it won’t cover the overhead expenses that will accumulate while you’re away. Luckily, a business overhead expense insurance can help cover certain types of expenses while you’re not in practice. Some of the expenses it covers include the following:
• Utility bills
• And other office costs
A business overhead expense insurance gives you and your medical staff peace of mind while you recover from at home.
4. Cyber Insurance
In today’s technologically advanced world, it’s not a surprise that the medical industry is going mobile. Your patients trust your practice to keep their personal, medical, and financial detail safe. However, the convenience of technology can come at a price as cyber hacks and online breaches can happen at any time. A medical practice in Kentucky found out that the personal data of 3,000 patients had been compromised. Their names, ages, and Social Security numbers were stolen in a data breach.
To prevent this from happening to your practice, it’s necessary to have good cybersecurity habits. It’s also important to consider cyber insurance. In case of a breach, cyber insurance can cover the costs associated with it.
5. Workers Compensation Insurance
You can’t run your medical practice without the help of your dedicated and hardworking employees. They deserve to feel safe and protected while working for you. Aside from Texas, all states are required to have workers compensation insurance depending on the number of employees.
This type of insurance pays for your employee’s medical care and compensation if injured during the course of employment. Even though your staff performs low-risk tasks, slips, falls, and other medical conditions could cost your practice a fortune. Additionally, if a worker dies due to work-related injuries, the insurance will compensate the employee’s family.
Finding the Right Insurance with a Medical Practice Loan
Since there are thousands of insurance companies in the market today, it can be challenging to find one that suits your practice. You can consult with a financial advisor or your legal advisor to help you.
Insurance policies are a must-have for every medical practice. It’s important to protect your practice early on so you can focus on treating patients and running a business. However, insurance policies can be pricey. Applying for a medical practice loan can help cover the cost of getting the necessary insurance policies for your practice.