Respiratory Therapist Insurance

Here are some of the factors that determine insurance premiums for respiratory therapists during the underwriting process:

• Type of services. High-risk professionals, such as Adult Critical Care Specialists (ACCS) who work in hospitals, can expect higher insurance rates than those with lower risks, such as Sleep Disorder Specialists (SDS).
• Business property and equipment. It'll cost more to insure ventilators or a medical office than pulmonary rehab supplies brought to clients' homes.
• Number of employees. A larger 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, severe weather, property values, 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. An RT who has filed an insurance claim in the past will pay more for insurance than one with a clean history of claims.

Yes, respiratory therapists and clinics typically must carry malpractice insurance to comply with state laws and contracts. Here are the top reasons you need malpractice insurance:

• State laws require coverage. Your state licensing board might require malpractice insurance for doctors and other healthcare professionals to practice clinically or to participate in state-run programs that assist with claims. More often, regulations require the employing home health agency or other healthcare provider to carry liability insurance.
• Your employer requires insurance. You will likely need malpractice insurance to work for any healthcare network or healthcare facility, such as a home health agency, hospital, or medical office.
• Respiratory specialists face high risks. If an RT is sued for negligent care that led to brain damage or death, you could end up paying hundreds of thousands of dollars in attorney fees, court-ordered judgments, or settlements. Even if you did nothing wrong, you could be named in a lawsuit alongside a doctor, nurse practitioner (NP), or physician assistant (PA) who made an error.

In addition, you might need general liability insurance to sign a lease, qualify for a loan, or get licensed by a state health department.

Even when insurance isn't required, you should consider carrying it to protect against costly lawsuits and qualify for contracts. Otherwise, a single accident or mistake could financially devastate your business.

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.

• 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 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 respiratory therapist cares for a patient during their policy period, but is sued years later after the policy has ended, 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.

General liability insurance is most often sold as an occurrence-based policy, while professional liability / malpractice insurance is typically a claims-made policy. Understanding the difference can help you avoid unexpected gaps in coverage—especially in fields like therapy, where claims may arise months or even years after care is provided.

You should consider buying tail coverage if you leave a job, retire, or switch insurance carriers. Tail coverage provides protection for incidents that happened while your malpractice policy was active, but were reported after the policy period ended.

For example, if an RT fails to escalate care when a patient shows symptoms of a chronic illness, they could face a lawsuit months later when the patient develops serious complications. Tail coverage would pay for a claim submitted even after the RT had retired and canceled their coverage.

Since medical malpractice claims can arise months or even years later, tail coverage ensures protection against lawsuits for patient care performed in the past.

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

• 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 Certified Respiratory Therapist (CRT), Registered Respiratory Therapist (RRT), or other board-certified healthcare professional. It's often available as an add-on to 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.

These additional coverages help ensure you’re protected against less common, but potentially costly, risks in your practice.

Respiratory therapists and clinics can take several steps to reduce their insurance premiums. Here are some of the ways to keep costs low:

• Shop around. Insurance carriers often sell similar policies at different rates. To find a good price, compare insurance rates from trusted carriers with Insureon's easy online application.
• Pay the annual premium. You can choose to pay your premium once a month or once a year. Insurers offer a discount when you pay the full annual amount instead of monthly payments.
• Work with an agent. Our licensed agents can help you find coverage that fits your risks and your budget, without any extra add-ons you don't need. They can also navigate the insurance market to find cost-saving bundles and the best rates for your business.
• Keep continuous coverage. Stopping and starting coverage is a red flag for insurers, and may end up costing more in the long run.
• Choose higher deductibles or lower limits. Policies with higher deductibles and lower limits cost less, but make sure you can easily afford the deductible, as it must be paid in full before you can collect on a claim.
• Manage your risks. Proper documentation, clear communication, and other risk management techniques can help you avoid disputes and subsequent lawsuits.