Business Insurance for Doctors and Physicians

Here are some of the factors that can affect insurance premiums for doctors during the underwriting process:

• Services provided. High-risk doctors, such as surgeons and OB/GYNs, can expect higher premiums than dermatologists, podiatrists, and others with lower risks.
• Business property and equipment. It'll cost more to insure a hospital with state-of-the-art equipment than a small medical office with basic supplies.
• Number of employees. A bigger workforce brings a higher risk of employee accidents and mistakes, which raises the cost of workers' compensation, general liability, and similar policies.
• Annual revenue. Increased business revenue is associated with higher risks and more frequent claims, which results in higher insurance costs.
• Business location. Crime rates, population density, property values, litigation rates, and other regional factors affect how much you pay for business insurance.
• Coverage limits and deductibles. Policies with higher limits cost more but cover more expensive claims. Choosing a higher deductible can lower your premium, but your insurance won't activate until you pay the full amount.
• Claims history. A doctor who has filed an insurance claim in the past can expect to pay more for insurance than one with a clean history of claims.

Yes, doctors typically must carry malpractice insurance, also called professional liability insurance, to comply with requirements set forth by state laws, employers, medical facilities, and healthcare networks. Malpractice coverage also provides crucial protection against costly lawsuits for this industry.

Here are the top reasons you need malpractice insurance:

• Some states require malpractice coverage. Some states, such as Colorado and New Jersey, require doctors to carry malpractice insurance in order to practice medicine, maintain a license, or secure admitting privileges.
• Insurance grants access to state funds. New York, Pennsylvania, and several other states reward insured physicians with access to a state patient compensation fund or other legal protection that caps the amount of damages from a malpractice suit.
• Healthcare networks and facilities require it. Doctors typically need malpractice insurance to work for healthcare networks and healthcare facilities, including most hospitals and medical offices.
• Your employer's policy may not be sufficient. Even if your employer, network, or residency program provides malpractice coverage, you should still invest in your own policy. Employer policies are designed to protect their own interests, which can leave you with insufficient protection.
• Doctors face high risks and costly lawsuits. If a doctor is blamed for a patient's worsening condition or death, they could end up paying hundreds of thousands of dollars in attorney's fees, a settlement, a court-ordered judgment, and other legal expenses.

Having your own malpractice insurance coverage gives you peace of mind and protection against claims of professional negligence or failing to meet the standard of care. Typically, doctors choose a malpractice policy with a $1 million per-occurrence limit and a $3 million aggregate limit.

Insureon's licensed agents understand the risks faced by doctors and can help you find the right amount of coverage for your needs at a price you can afford.

When choosing liability insurance, it’s important to understand whether your policy is claims-made or occurrence-based, as it affects when you’re covered—and for how long. General liability insurance is usually sold as an occurrence-based policy, while professional liability / malpractice insurance is typically a claims-made policy.

Here's a breakdown of the difference between claims-made and occurrence policies:

• Claims-made policies provide coverage only if the claim is made while the policy is active (or during an extended reporting period, if added). This means if a lawsuit is filed after your policy ends, you’re not covered, unless you purchase tail coverage.
• Occurrence-based coverage, on the other hand, provides protection for incidents that happen during the policy period, even if the claim is filed years later. These policies are typically more expensive upfront but offer long-term protection for past services.

For example, if a patient files a lawsuit over care that was provided months before a physician canceled their policy, an occurrence policy would still cover the claim. A claims-made policy would only provide coverage if it was still active in the year the claim was filed or extended with tail coverage.

Another policy feature is whether legal defense costs are paid in addition to the liability limit ("defense outside policy limits") or out of the limit ("eroding limits"). Claims-made policies often use eroding limits, which means a lengthy court case can consume much of the limit on legal costs before any settlement or judgment is paid.

Doctors often buy these coverages as part of a comprehensive risk management strategy to protect their practice and career:

• Telehealth coverage adds protection to your malpractice insurance for liability claims arising from telemedicine or virtual patient services, such as a misdiagnosis that occurs during a video appointment.
• License defense coverage pays for legal fees and other costs if you face an investigation or malpractice lawsuit that could affect your status as a Doctor of Medicine (MD) or other board-certified professional. It's often available as a rider for your professional liability policy.
• Needlestick or occupational accident insurance (OAI) protects against injuries from needles or sharps, as well as exposure to blood and other bodily fluids.
• HIPAA defense coverage covers legal proceedings, fines, and penalties related to HIPAA violations, and can typically be added to medical professional liability insurance.
• Commercial property insurance helps doctors' offices recover from storms, fires, theft, and similar incidents that lead to property loss or damage.
• Business interruption insurance, also called business income insurance, covers lost profits and daily operating expenses if a burst pipe or other covered property claim forces your office to close temporarily.
• Employment practices liability insurance (EPLI) pays for legal defense costs related to claims of wrongful termination, discrimination, harassment, and other violations of employee rights.
• Commercial umbrella insurance, similar to excess liability insurance, provides liability protection once the limit is reached on your general liability policy, commercial auto insurance, or employer's liability insurance (part of workers' comp).

It's easy to find affordable GP insurance with Insureon. For most policies, you can compare quotes online and choose the best coverage for your budget and your business needs.

Other ways for doctors to save money on business insurance include:

• Bundle policies. It's usually less expensive to purchase two or more policies together from the same provider. Doctors can often bundle general liability and commercial property insurance in a business owner's policy, or add malpractice insurance to their general liability policy.
• Customize your coverage options. Choose lower limits or a higher deductible to reduce your premium, but make sure your coverage is sufficient to cover a claim and that you can afford to pay the deductible in a crisis.
• Pay the annual premium. Insurance companies offer a choice of paying monthly installments or an annual premium, and the latter usually brings a substantial discount.
• Focus on risk management. Policyholders can reduce the chance of lawsuits and claims through strict documentation, a focus on patient safety, and clear communication. A clean claims history keeps your premium low.

Insureon's agents can help you find the right insurance solutions for your business, whether you're a primary care physician, a chiropractor, a dentist, or any other type of specialist.