Workers' compensation insurance for healthcare professionals

Even if you take steps to ensure a safe work environment, you can’t prevent every accident. From carpal tunnel syndrome to a needlestick injury that transmits hepatitis, an injury or illness can be financially disastrous for a small healthcare company.

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
• Ongoing medical costs, such as medication
• Partial lost wages while the employee is recovering
• Disability benefits for lasting injuries

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

Employer’s liability insurance can help pay for:

• Court costs
• Attorney’s fees
• Settlements

Without adequate coverage, you could find yourself paying for a costly legal defense, even if a lawsuit is frivolous.

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

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, you can purchase a policy to protect yourself, too. It's a good idea to carry this coverage for financial protection against work injuries, which health insurance might not cover.

In certain states, healthcare professionals 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 might not include employer’s liability insurance. However, you can purchase it from a private insurer to fill this gap in coverage.

Healthcare professionals face tremendous risks: back injuries from moving and lifting patients, infections from contaminated needles, and repetitive motion injuries. Owners of medical practices can help reduce risks with:

• Employee safety training
• Proper equipment, such as gloves and surgical masks
• Medical equipment maintenance
• Prompt disposal of contaminated items, such as used needles

By implementing a risk management plan and maintaining a safe work environment, you can limit 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 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: A BOP bundles general liability coverage with commercial property insurance, often at a lower rate than if the policies were purchased separately.

Professional liability insurance: This policy helps pay for legal expenses when a healthcare professional is accused of negligence or an error that harms a patient. It's sometimes referred to as malpractice insurance.

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

Are you ready to safeguard your healthcare practice 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.