Workers' compensation insurance for healthcare workers and providers

Even if you take steps to ensure a safe work environment, you can’t prevent every accident. Healthcare workers face a variety of on-the-job risks, from patient handling injuries and needlestick accidents to workplace violence, latex allergies, and exposure to hazardous chemicals or infectious diseases. These incidents can lead to costly medical treatment, lost work time, and long recovery periods.

Workers’ comp insurance can pay for medical bills and partial missed wages while an employee is recuperating. Most states require this coverage for businesses with employees.

• Immediate medical costs, such as an ambulance ride or emergency treatment
• Ongoing medical costs, such as medication, physical therapy, or follow-up care
• Partial lost wages while the employee is recovering
• Disability benefits for lasting injuries
• Rehabilitation services that help employees return to work

Usually included in a workers’ comp policy, employer’s liability insurance provides protection when a staff member decides to sue your healthcare business over an injury.

Employer’s liability insurance can help pay for:

• Court costs
• Attorney’s fees
• Settlements

Healthcare providers may want higher coverage limits due to the frequency and severity of workplace injury risks in the industry. Without adequate coverage, you could find yourself paying for a costly legal defense, even if a lawsuit is frivolous.

If you don't provide workers' compensation coverage, you could face penalties such as fines, stop-work orders, and be held liable for an injured employee's medical bills and lost wages. Plus, without the exclusive remedy protection a workers' comp policy provides, your healthcare business could also be exposed to costly civil lawsuits.

Every state creates its own laws for workers’ compensation requirements. For example, every healthcare business in Minnesota must carry workers’ compensation insurance for its employees—even part-time workers. However, Alabama healthcare companies are only required to carry workers’ compensation when they have five or more employees.

While independent contractors, sole proprietors, and partners don’t have to carry workers’ compensation insurance, they can sometimes purchase a policy for their own protection, too. It's a good idea to carry this coverage for financial protection against workplace injuries, which health insurance might not cover.

In certain states, healthcare professionals must purchase coverage through a monopolistic workers' comp state fund. Those states are:

• North Dakota
• Ohio
• Washington
• Wyoming

If you purchase workers’ comp through a monopolistic state fund, it might not include employer’s liability insurance. However, you can purchase it as stop gap coverage from a private insurance company.

Healthcare professionals face a variety of workplace hazards, including patient lifting injuries, infections from contaminated needles, patient-related violence, and repetitive motion injuries. Owners of medical practices can help reduce risks with:

• Employee safety training
• Safe patient handling and lifting procedures
• Personal protective equipment (PPE), such as gloves, masks, and eye protection
• Medical equipment maintenance
• Prompt disposal of contaminated items, such as used needles
• Workplace violence prevention and de-escalation training
• Return-to-work programs that help injured employees safely resume work duties

By implementing a risk management plan and maintaining a safe work environment, you can reduce workplace accidents and claims. Healthcare employers that establish effective return-to-work programs may also improve their experience modification rate (experience mod) over time, which can help lower workers' compensation insurance premiums.

The amount you pay for workers’ compensation insurance 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 providers use in underwriting to calculate workers' comp rates is:

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

General liability insurance: This policy can pay legal expenses related to patient property damage and injuries, such as a patient who trips in your office and breaks a wrist.

Business owner’s policy (BOP): A BOP bundles general liability coverage with commercial property insurance, often at a lower rate than if the policies were purchased separately.

Professional liability / medical malpractice insurance: Sometimes called errors and omissions (E&O), this policy helps pay for legal expenses when a healthcare professional is accused of negligence or an error that harms a patient.

Commercial auto insurance: State laws require this coverage for vehicles owned by a business. It helps cover the cost of an accident involving a business vehicle.

Cyber insurance: A cyber liability policy helps healthcare professionals survive data breaches and cyberattacks by paying for recovery expenses and other associated costs.

Finding the right workers' compensation coverage can be challenging, especially for healthcare providers with unique workplace risks. Insureon makes it easy to compare quotes from top-rated insurance carriers and find coverage tailored to your practice's needs.

If you have questions, our licensed insurance agents can help you evaluate your risks, understand your coverage options, and choose the right policy for your business. Whether you're purchasing workers' compensation insurance for the first time or reviewing your current coverage, we're here to help.

Complete Insureon's easy online application to compare quotes and purchase coverage. Once you find the right policy, you can often begin coverage in less than 24 hours.