Workers’ compensation insurance for healthcare facilities

Even if you take precautions to ensure your medical facility is a safe place to work, you can’t prevent every accident. From repetitive motion injuries caused by typing to back injuries from lifting patients, an injury can be costly for a small business.

Workers’ compensation insurance can cover medical expenses along with missed wages while an employee is recovering.

• Immediate medical costs, such as an ambulance ride
• Ongoing medical costs, such as medication and physical rehabilitation
• Partial lost wages while the employee is unable to work

Typically included in a workers’ comp policy, employer’s liability insurance provides protection when a dental lab technician, medical office secretary, or other employee decides to sue a healthcare business over an injury.

Employer’s liability insurance can help cover:

• Attorney’s fees
• Court costs
• Settlements

Even if a lawsuit is frivolous, you could find yourself paying for a costly legal defense if you don't have adequate coverage.

The amount you pay for workers’ compensation is a specific rate based on every $100 of your business’s payroll. Your premium is determined by the type of work done by your employees (classification rate), your experience modification rate (claims history), and your payroll (per $100).

The formula is:
Classification rate x Experience modification rate x (Payroll / 100) = Premium

Each state creates its own laws and rules for workers’ compensation coverage. For example, every healthcare facility in Maine with one or more employees must carry workers’ compensation insurance. However, Texas healthcare facilities aren't usually required to carry workers' compensation insurance, no matter how many workers they employ.

While independent contractors, sole proprietors, and partners don’t have to carry workers’ compensation insurance, you can purchase a policy to protect yourself, too. It's a good idea to carry this coverage for financial protection against work injury claims that health insurance might deny.

In certain states, healthcare facilities must purchase workers’ compensation insurance through a monopolistic state fund. Those states are:

• North Dakota
• Ohio
• Washington
• Wyoming

If you purchase workers’ comp through a monopolistic state fund, it may not include employer’s liability insurance. However, you can purchase it from a private insurer to fill this gap in coverage.

From ambulatory surgery centers to dialysis centers, healthcare workers face high risks – especially bodily injury from moving and lifting patients.

Owners of healthcare facilities can help reduce risks with:

• Employee safety training
• Proper equipment, such as gloves and goggles
• Regular maintenance of medical and lab equipment

By maintaining a safe work environment and managing your risks, you can decrease workplace accidents. That means fewer claims – and a lower insurance premium.

Workers’ compensation insurance protects your employees and to some extent your business, but it doesn’t cover common risks such as property damage and patient injuries. Other recommended insurance policies for healthcare facilities include:

General liability insurance: This policy covers the most common risks of running a healthcare facility, including slip-and-fall injuries and accidental damage to patient property.

Business owner’s policy: This policy bundles general liability insurance with commercial property insurance, typically at a lower rate than if the policies were purchased separately.

Cyber liability insurance: Recommended for any business that handles sensitive data, this policy helps healthcare facilities recover from data breaches and cyberattacks.

Professional liability insurance: This policy is also called errors and omissions insurance or malpractice insurance. It covers legal expenses related to accusations of errors or negligence.

Commercial auto insurance: Healthcare facilities that own vehicles are almost always required to buy commercial auto insurance. It covers liability and property costs from auto accidents.

Are you ready to safeguard your healthcare facility with workers’ compensation or another type of insurance? Complete Insureon’s easy online application today. Once you find the right policy, you can begin coverage in less than 24 hours.