How much does healthcare facility insurance cost?

Healthcare facilities pay an average of $101 per month, or $1,210 per year, for a business owner’s policy.

A business owner's policy, or BOP, bundles general liability coverage with commercial property insurance to cover both third-party risks and your business property. It typically costs less than purchasing each policy separately.

A BOP protects against customer injuries and property damage. It also covers damage to your physical building and office equipment. Because of its increased coverage and affordability, it’s the policy most often recommended by Insureon’s agents for small business owners who rent or own an office.

This is the average BOP for healthcare facilities that buy from Insureon:

Insurance premium: $101 per month
Policy limits: $1 million per occurrence; $2 million aggregate
Deductible: $500

Small, low-risk medical facilities are often eligible for a business owner's policy.

Small business owners may see higher costs if they choose to add endorsements to their policy. Insurance endorsements, such as business interruption insurance or equipment breakdown coverage, are often recommended to help avoid financial losses if a fire or power outage forces your business operations to cease for an extended period of time.

The cost of a business owner's policy is based on a number of factors, including the value of your property, where you are located, the number of employees you have, and your specialty.

Among healthcare facilities that purchase a business owner’s policy with Insureon, 50% pay less than $100 per month and 23% pay between $100 and $200 per month.

Businesses with larger or more expensive business property will typically pay more for a BOP than healthcare facilities with smaller premises or lower value business property. For example, ambulatory surgery centers and dental labs with specialized medical equipment are likely to pay more than a small medical office.

Your industry risk, years in operation, and claims history will also affect your premium.

Policy limits are the maximum amounts your insurance company will pay for covered claims.

The per-occurrence limit is the most your insurer will pay for a single incident, while the aggregate limit is the maximum your insurer will pay on any claims during your policy period, typically one year.

Most healthcare facilities (74%) choose business owner policies with a $1 million per-occurrence limit and a $2 million aggregate limit. As your small business grows, you may need to expand your policy limits.

If you don't need property coverage, it may make more sense to buy standalone general liability insurance. This insurance policy costs healthcare facilities an average of $42 per month, or $500 annually.

A general liability policy covers risks involving patients, visitors, and other non-employees, including those related to bodily injury, damage to a client's property, and advertising and personal injuries.

For example, a vendor visiting a dialysis center might trip over an extension cord and file a lawsuit over their injury. General liability coverage would pay for legal expenses, including the cost of hiring an attorney and any resulting settlement or court-ordered judgment.

This is the average general liability policy for medical facilities that buy from Insureon:

Insurance premium: $42 per month
Policy limits: $1 million per occurrence; $2 million aggregate

The cost of general liability insurance depends on several factors, such as the coverage limits you choose, the size of your facility, the amount of foot traffic you have, your location, and any endorsements you may add, such as an additional insured.

General liability insurance costs depend on your risk of a third-party lawsuit. Generally, the more you interact with the public, the higher your risk of being involved in this type of lawsuit.

For example, a small laser eye surgery center will pay less for this policy than a busy hospital that has patients coming and going all day. 

Among medical facilities that purchase general liability insurance with Insureon, 72% pay less than $60 per month and 18% pay less than $30 per month.

Across various medical professions, learn how to find affordable general liability insurance.

For healthcare facilities, workers’ compensation insurance costs an average of $89 per month, or $1,063 per year.

This business insurance coverage helps pay for medical expenses when an employee is injured on the job. It also provides disability benefits while they're recovering and unable to work.

To comply with your state’s requirements and avoid penalties, healthcare organizations typically must purchase this coverage for their employees. It's also recommended for sole proprietors, as health insurance plans can deny insurance claims for medical bills when an injury or illness is related to your job.

Most policies include employer's liability insurance, which covers the cost of lawsuits related to employee injuries. There's usually no limit to how much a workers' comp policy can pay for employee benefits, though it depends on state laws.

The cost of workers' compensation insurance depends on several factors, including the number of employees you have and the level of risk involved with their jobs.

Get more information on how to find affordable workers' compensation coverage.

Among medical facilities that buy workers’ compensation insurance with Insureon, 54% pay less than $100 per month and 24% pay between $100 and $200 per month.

Workers' comp costs depend on the number of employees you have in your small business. A larger workforce brings a higher risk of worker injuries, which is why bigger businesses tend to pay more for this type of insurance.

Healthcare facilities pay an average of $139 per month, or $1,669 annually, for professional liability insurance. This policy is sometimes referred to as errors and omissions insurance or medical malpractice insurance.

Professional liability insurance offers critical coverage for medical professionals, including legal fees related to accusations of negligence. For example, if a radiology lab is sued over a missed deadline for imaging services, this policy would cover the costs of a resulting lawsuit.

This is the average professional liability policy for healthcare facilities that buy from Insureon:

Premium: $139 per month
Policy limits: $1 million per occurrence; $3 million aggregate
Deductible: $500

The cost of professional liability insurance for medical facilities depends on several factors, such as the types of services you offer (outpatient, long-term care, senior care, etc.), your malpractice claims history, industry risks, and the policy limits you choose on your professional liability policy.

Among healthcare facilities that purchase a professional liability policy with Insureon, 45% pay less than $100 per month and 58% pay less than $200 per month.

Healthcare professionals who work with higher-risk populations or specialize in certain areas may pay more for malpractice coverage due to the increased risk. Providers will also look at the type of professional services you offer and your facility's overall risk level when underwriting your premium.

Across all healthcare facilities, learn how to get affordable professional liability insurance.

Medical care facilities pay an average of $278 per month, or $3,335 annually, for commercial auto insurance.

Most states require this coverage for vehicles owned by healthcare providers or facilities. For personal, rented, and leased vehicles used by your business, look to hired and non-owned auto insurance (HNOA) instead.

A commercial auto policy provides financial protection in the event of an accident involving your business vehicle. It can help pay for property damage, medical costs, and legal expenses.

The cost of commercial auto insurance depends on several factors, including the policy limits you choose, coverage options, the value of the vehicles, the driving records of anyone permitted to drive, and additional insured endorsements you select.

Learn more about how to find affordable commercial auto insurance coverage.

Healthcare facilities pay an average of $81 per month, or $976 annually, for cyber insurance. You might also see this policy called cyber liability insurance or cybersecurity insurance.

Cyber insurance helps health centers and other facilities recover financially after a data breach or cyberattack. It can help pay for customer notification costs, fraud monitoring services, and other expenses necessitated by state data breach laws.

The cost of cyber insurance depends on the amount of HIPAA and other personal information handled by your medical facility, such as patient credit card numbers, along with the number of employees who can access that information.