With the rising cases of medical negligence lawsuits against a medical practitioner, medical malpractice insurance has been prevalent over the years to protect the livelihood and assets of such professionals. Overlooking this important aspect has cost heavily for many doctors so far.
According to Washington Post, 2016 “The medical negligence payouts in 2014 in the New York alone stood at $690 million”
It has also been observed that there are other forms of insurance which a medical professional is required to cover under the law. But due to the lack of inadequate knowledge, most of this coverage is likely to be missed by them resulting in huge losses at the later stages.
Most of the doctors focus on medical liability coverage, which is the largest premium paid by them on account of medical malpractice insurance. However, they tend to ignore the other types of insurance which are equally crucial in protecting their livelihood and assets.
In fact, under several circumstances, these insurances are required by the law which most of the doctors are unaware of.
In this article we are going to discuss different forms of medical insurances:
Medical Malpractice Insurance
It is one of the prevalent insurance sought by medical professionals. Medical malpractice insurance carriers are protected against the financial losses that arise due to the lawsuits filed by their patients claiming professional negligence leading to an injury/death of the patient.
Hence the patient’s claim of negligence is covered under medical malpractice insurance for the doctors.
Business Auto Insurance
Some medical practitioners facilitate their patients with home visits and require using their vehicle for the commutation. Hence the need for commercial or business auto insurance is imperative.
Most auto insurance policies do not cover the damage that occurs due to business use. Thus business auto policy is designed to cover the vehicles used for business purposes.
The insurance primarily covers the property damage and medical expenses for bodily injury on account of such accidents. Depending on the coverage, the insurance company will replace or repair your vehicles due to theft, accidents, or any natural calamity.
Medicare Insurance
Many people assume that Medicare, the federal government’s health-care program for people aged 65 and over, will cover all of their medical bills. Unfortunately, it does not. The truth of how much you’ll have to spend for health-care services out of pocket might be a significant budget buster.
It is important to understand how to decipher Medicare’s various expenses and keep them under control. MedicareWire.com explains how much Original Medicare costs to better understand and pick your coverage carefully.
Professional Liability Insurance
The unfortunate event of lawsuits made by your patients to claim negligence on your part is a re-occurrence when you are practicing as a medical professional privately.
Due to the lack of a one-size-fits-all policy, this special insurance coverage helps in covering the legal defense cost that can even run up to hundreds and thousands of dollars.
Most of the private small physicians do not have enough resources to cover such claims, thus malpractice insurance for professional liability is a must.
Practice Overhead Insurance
Individual liability insurance is relevant for the inability to practice medicine due to illness or injury. While this type of insurance is usually kept as a backup to recover the medical expenses on such an inability, the prime concern should be – Who will replace your absence in such an event?
However, when you are temporarily out of office, expenses like salaries, rent, taxes, and utility bills are still in place to handle. Practice Overhead insurance helps in recovering such overhead expenses in the event of loss of income due to injury.
Worker Compensation Insurance
When you come up with a private clinic, you require employing dedicated employees to maintain it. If anyone gets seriously injured, how to continue with your practice? Most of the states in the United States make it a mandate to such business owners to obtain workers’ compensation insurance if they have more than the prescribed limit of employees.
This type of insurance helps in paying off the loss on account of wages and medical expenses to the employees who get injured while discharging their duties. In the event of the death of the employee, the insurance companies compensate the employee’s family.
This insurance is significant for most businesses to ensure the livelihood of employees in the event of accidents.
Property Insurance
Like every business, opening a clinic requires a lot of time, effort, and investment for the right medical equipment, fixtures and furniture, and other medical supplies. But, in the event of a natural disaster, how will you ensure safety?
Property insurance is the best way to secure your property in the event of unwanted theft and fire. It exhaustively covers the physical building along with the medical equipment and other fixtures used for your practice. Especially in the event of leasing your space, property insurance is a must.
Business Interruption Insurance
Some places are likely to be affected by natural calamities and disasters at a higher rate than others. If you choose to practice in such areas, this insurance is of utmost importance for your business. In the event of a catastrophic event, the business operations will suffer.
A reliable business interruption insurance policy helps in running and getting back on your toes.
Compared to property insurance, this type of insurance aims at covering the income stream from the business, which is adversely affected due to the disaster.
The temporary closure of business and structural rebuilding to overcome the adversity of natural disasters are the reason for stagnation in business operations. Business Owner policy is a comprehensive insurance solution to cover the property insurance policy and business interruption insurance.
Medigap Insurance
Medigap insurance protects you against the expenses that Medicare does not pay, which are referred to as “gaps” in coverage. Medigap policies help you budget for your out-of-pocket medical expenses. Giving you peace of mind by protecting your cash from unforeseen medical expenses. You’ll simply have to worry about the monthly cost with Medigap insurance. Aside from your monthly payment, the expenditures are relatively low. Depending on the letter plan you choose, your cost-sharing might be as low as $0.
Life Insurance
Although it is not directly related to your practice, life insurance is a significant form of insurance that extends financial protection to your family member in the event of accidental death.
Your appointed beneficiaries receive financial protection in the event of your death under life insurance. Not just your family members, your business partner gets their peace of mind too. It is the best way to compensate for the loss of income to your family members in the event of accidental death.
Summary
The right type of insurance is the best way to avoid major financial losses to any medical practitioner in case of catastrophic events. The day you begin your medical practice, you are certainly exposed to various liabilities.
Having suitable insurance in place helps a doctor to protect their practice from the various kinds of potential risks.