The Insurance Coverage You Need When Starting a New Medical Practice

By Adria Schmedthorst  |  October 8, 2015
New Practice Start Up GuideBy Adria Schmedthorst

Running a private practice is rewarding and comes with many advantages. But, it also comes with the risk of lawsuits, employee problems, and property damage. These can destroy not only your business accounts but also your personal assets. This means that when you are starting a new practice, one of the most important steps you can take is to protect yourself with the right insurance policies.

Here is a look at the insurance policies you need to make sure you and your new medical practice are coveredTweet this Kareo story
  • Office Liability: Covers your liability risks from claims related to accidents that happen in your office. For example, if one of your patients trips over your welcome mat and breaks their leg, this policy will cover your legal fees and any judgements against you.
  • Worker’s Compensation Coverage: This is similar to your office liability policy but covers claims made by your employees rather than by third parties, like your patients. It protects you from paying out of pocket for injuries, lawsuits, and medical expenses from injured staff members.
  • Umbrella Policy: This adds extra coverage to your Office Liability and Worker’s Compensation coverage. For example, if that patient who tripped over your welcome mat received a judgement of one million dollars but your Office Liability policy only covered $750,000, this policy would pay the additional quarter of a million dollars so that it would not come out of your pocket.
  • Office Contents: Protects you from fire, vandalism, theft, and natural disasters. It helps you to replace your equipment, furnishings, and supplies and get back on your feet.
  • Business Interruption: This policy covers the loss of income your business would suffer after a disaster that caused you to close your doors. It doesn’t cover your property but instead covers the profits you would have earned during the time you were forced to remain closed.
  • Employee Fidelity Bond: These protect you in the case of any loss or claims incurred as a result of the actions of an employee who steals or otherwise acts dishonestly, including forgery. It does not cover legitimate mistakes, accidents, poor workmanship, or injuries.
  • Health/Disability/Life: These are your personal protection policies, health insurance for you and your family, life insurance to take care of your family in case of your death, and a disability policy to protect your income in case of personal sickness or injury.
  • Malpractice: Protects you from claims arising from your treatment of patients.
  • “Nose”/”Tail” Coverage: This is part of your Malpractice policy. If you are currently practicing and leaving that position to start your new office, you may need to purchase “nose” coverage to protect yourself from claims originating in your current setting. Check your malpractice policy, if you already have “tail” coverage you won’t need to purchase the additional “nose” coverage.

  • It’s no secret that in today’s environment every business owner runs the risks of lawsuits and, this is especially true for independent physicians. When you open your doors, you will not only face all the risks associated with running a business but also all the liabilities associated with treating patients. Make sure to protect your business and personal assets with the insurance policies you need for peace of mind.

    For more tips on how to successfully start a new medical practice, download this helpful guide.



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