Business owner’s policy for healthcare professionals
A business owner’s policy (BOP) combines general liability with property insurance. It protects healthcare providers against common risks like patient injuries, third-party property damage, and damage to medical equipment or other business property—often at a lower cost than purchasing these policies separately.
A BOP bundles policies to protect your practice
Every time someone walks through the door of your healthcare practice, there’s a risk of a slip-and-fall injury. Not to mention, a fire could destroy thousands of dollars of medical equipment and leave your office in ruins.
A business owner’s policy (BOP) covers these risks and more. This policy bundles general liability insurance and commercial property insurance, typically at a lower rate than purchasing both policies separately.
General liability insurance provides coverage for third-party injuries or property damage for which you might be found liable. And commercial property insurance protects your building, equipment, and inventory from damage or loss.
A BOP protects against:
- Damage to business property
- Patient injuries and property damage
- Advertising injuries
- Forced closure
Many landlords require proof of liability coverage before signing or renewing a commercial lease.
Customize a BOP to fit your healthcare business
Healthcare professionals can tailor a BOP to meet their unique needs. Useful add-ons might include business interruption insurance, cyber insurance, or other endorsements.
Businesses that are eligible for a BOP typically:
- Have fewer than 100 employees
- Have a small workplace or office
- Make less than $1 million in annual revenue
- Operate in a low-risk industry
- Need less than 12 months of business interruption insurance
Talk to a licensed Insureon agent who specializes in healthcare to find out if your business meets the criteria for a BOP.
What coverage can a business owner's policy offer healthcare professionals?
From patient accidents to property damage and temporary closures, a business owner's policy provides coverage for many of the risks healthcare practices face every day.
Damage to business property
The commercial property insurance included in a BOP safeguards business property that's damaged, vandalized, or stolen. This includes:
- Medical equipment
- Office furniture and furnishings
- Your building if you own it
If your chiropractic clinic, ophthalmology practice, or other healthcare company suffers damage from a fire—even one that started in another building—a BOP can cover renovation costs.
Patient injuries and property damage
The general liability portion of a BOP can pay for legal expenses related to third-party injuries or property damage. For instance, it may offer coverage if:
- A patient slips on a newly waxed floor at a dentist's office.
- An optometrist’s receptionist cracks a patient’s smartphone screen.
Advertising injuries
The general liability portion of this policy also offers protection against advertising injuries, which include:
- Defamation, including libel (written) and slander (spoken)
- Copyright or brand infringement
For example, if a staff member at your dental office writes a negative online review of a competing dentist and your practice is taken to court for libel, a general liability insurance policy can pay for your legal defense.
Forced closure
If your healthcare business is forced to close after a burst pipe or other disruptive event, your BOP can compensate for lost income and other costs.
For example, a physical therapy clinic might have to temporarily close its doors for repairs after a tornado. Business interruption insurance, included in most BOPs, can cover operating expenses while your office is being renovated. This can include rent, staff wages, and utility bills.
Top healthcare professionals we insure
How much does a BOP for healthcare professionals cost?
Healthcare workers pay an average of $70 per month for a business owner's policy, though costs for health practitioners vary by business risks and needs.
For comparison, healthcare professionals pay an average of $31 per month for general liability coverage, while commercial property insurance costs an average of $108 per month.
Because BOP eligibility is limited to lower-risk practices, businesses that need a standalone property policy—often those with higher-value equipment—may pay more for property coverage alone than a qualifying business would pay for a BOP.
What factors impact the cost of a BOP for healthcare providers?
Insurance companies consider several factors during underwriting to determine a business owner's policy premium for healthcare professionals, including:
- Healthcare services offered: Providers that offer higher-risk services, such as surgery or hospice care, may pay more than those with lower-risk operations.
- Medical equipment and business property: The value of your medical equipment, office furnishings, and other business property affects the amount of property coverage you need.
- Annual revenue: Practices with higher revenue often face greater financial exposure, which can increase premiums.
- Business location: Insurance costs can vary based on local property values, crime rates, weather risks, and other regional factors.
- Number of employees: Larger healthcare practices typically have more day-to-day activity, which can increase the likelihood of incidents that lead to insurance claims.
- Claims history: Healthcare providers who have previously filed insurance claims may pay higher premiums than those with a clean claims record.
- Coverage limits and deductible: Higher coverage limits typically increase premiums, while choosing a higher deductible can help lower insurance costs.
Other key policies for healthcare professionals
A BOP covers the most common risks faced by healthcare professionals, but it doesn’t shield against staff injuries, lawsuits related to work mistakes, or data breaches. Healthcare professionals should also consider:
- Workers’ compensation insurance: Most states require this coverage for healthcare businesses with employees. Workers’ comp can cover medical fees and disability benefits for work injuries.
- Professional liability / medical malpractice insurance: This policy helps cover legal expenses when a healthcare practitioner is accused of a mistake or negligence.
- Commercial auto insurance: In most states, vehicles owned by a healthcare business usually must be covered by commercial auto insurance. It covers costs when a business vehicle is involved in an accident.
- Cyber insurance: This policy helps healthcare professionals survive data breaches and cyberattacks by paying for recovery expenses and other associated costs.
Should healthcare workers consider any additional coverage?
Beyond a BOP and medical malpractice insurance, healthcare professionals may benefit from additional coverage tailored to their specific risks, including:
- Telehealth coverage: Healthcare providers who offer virtual care may need coverage for malpractice claims related to telemedicine services, such as alleged misdiagnoses, documentation errors, or patient complaints arising from remote consultations. This coverage is often available as an endorsement to a professional liability policy.
- License defense coverage: A licensing board investigation can be costly, even if no wrongdoing occurred. License defense coverage can help pay legal expenses associated with defending a professional license during disciplinary proceedings or investigations.
- Needlestick coverage and occupational accident insurance (OAI): This coverage can help pay for testing and treatment after a needlestick injury or exposure to bloodborne pathogens. Healthcare professionals who aren't covered by workers' comp, such as independent contractors, may also consider OAI to help cover work-related medical expenses and lost income.
- HIPAA defense coverage: Healthcare providers that handle protected health information (PHI) may want coverage for legal costs associated with HIPAA investigations, proceedings, fines, and penalties resulting from alleged privacy or security violations.
Get free quotes and buy online with Insureon
Are you ready to safeguard your healthcare business with a business owner’s policy? Complete Insureon’s easy online application today. Once you find the right policy, you can begin coverage in less than 24 hours.
Verified BOP coverage reviews
The average costs on this page were derived from our data on small business owners in the healthcare field who purchased policies through Insureon. Most of our customers have less than five employees, annual revenue ranging from around $50,000 to more than $200,000, and five years or less in business.
Find business owner’s policy quotes
Want free expert advice right in your inbox?
By entering your email address and subscribing, you agree to our Terms of Use and Privacy Policy