Running a healthcare practice comes with unique risks and responsibilities. From managing patient records to handling expensive medical equipment, the stakes are high and the costs can be even higher. The right business insurance protects your practice from financial losses, legal issues, and operational disruptions.
At Unity Insurance, we specialize in helping healthcare professionals build comprehensive coverage plans. Here are five essential types of business insurance every healthcare practice should carry.
1. Medical Malpractice Insurance
Medical malpractice insurance is the cornerstone of risk mitigation for any healthcare provider. This policy covers legal fees, court costs, and settlement payments resulting from a patient alleging bodily injury or personal injury resulting from professional services. Some of the common accusations are if a patient alleges negligence, misdiagnosis, surgical errors, or other professional mistakes.
Even the most skilled healthcare providers are vulnerable to lawsuits. Maryland’s legal climate for malpractice claims is complex, and the cost of litigation can be financially devastating without adequate protection. Whether you operate a solo private practice or manage a large clinic, malpractice insurance is crucial.
2. General Liability Insurance
General liability insurance covers third-party bodily injury, property damage, and related legal fees that stem from incidents that occur on your premise, but are not related to patient care.. For example, if a patient slips and falls in your waiting room, this policy would help cover their medical bills and protect your business from a lawsuit.
In healthcare settings where foot traffic is high and medical equipment is present, accidents can happen. General liability insurance provides a critical safety net and is often required when leasing office space or securing vendor contracts.
3. Cyber Liability Insurance
Healthcare practices are prime targets for cyberattacks due to the sensitive nature of patient data. A breach of electronic medical records can lead to regulatory fines, lawsuits, and long-term reputational damage.
Cyber liability insurance helps mitigate the fallout of data breaches, ransomware attacks, and system failures. Coverage often includes costs related to forensic investigations, patient notification, credit monitoring services, loss of income, and legal defense. As a Maryland small business insurance agency, we regularly advise clients on HIPAA-compliant cybersecurity coverage options tailored to healthcare providers.
4. Property Insurance
Property insurance protects your physical assets, including your building, furniture, medical equipment, and supplies, from losses caused by, theft, vandalism, or natural disasters. For practices with expensive diagnostic or treatment equipment, the financial risk of property loss is significant.
This type of coverage ensures that your operations can resume quickly after an unforeseen event, minimizing downtime and lost revenue. Many policies can also be bundled with business interruption insurance to cover income lost during forced closures.
5. Workers’ Compensation Insurance
If you employ staff—whether administrative, clinical, or custodial—Maryland law requires you to carry workers’ compensation insurance. This policy covers medical expenses and lost wages if an employee is injured on the job.
In healthcare settings, employees face exposure to illnesses, repetitive stress injuries, and accidents involving patients or equipment. Workers’ compensation protects both the employee and your practice, reducing the risk of costly legal claims and maintaining a safe workplace environment.
Other Insurance Options
While the policies listed above cover many common risks, they are primarily designed to support the continuity of normal business operations. However, there are additional coverages available that address other important exposures. Some of these noteworthy options include:
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Employment Practices Liability Insurance (EPLI): Protects against claims related to employment-related issues such as wrongful termination, discrimination, harassment, and retaliation.
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Errors and Omissions (E&O) Insurance: Covers professional liability for mistakes or negligence in the services provided by the business.
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Directors and Officers (D&O) Insurance: Protects company leadership from personal losses in the event they are sued for decisions made while managing the organization.
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ERISA Bond: A fidelity bond required under the Employee Retirement Income Security Act to protect employee benefit plans from fraud or dishonesty.
These supplementary policies can provide a more comprehensive risk management strategy tailored to the unique needs of your business.
Tailored Insurance Solutions for Healthcare Practices
Every healthcare practice is unique. Dentists, physical therapists, mental health professionals, and primary care providers all face distinct exposures As a Baltimore-based Maryland small business insurance agency, Unity Insurance offers personalized consultations for health care professionals. We work closely with practice administrators and physicians to assess risks, identify gaps, and build robust insurance portfolios that can withstand the evolving challenges of today’s healthcare environment.
Protect Your Practice with Unity Insurance
At Unity Insurance, we are proud to support Maryland’s business community with comprehensive insurance solutions. Whether you’re looking for workers’ compensation insurance, general liability insurance, or other business coverages, our team is here to help you protect your employees, your company, and your future.
Unity’s insurance professionals serve as your advocate from the very beginning. From selecting coverage to filing a claim, we are by your side every step of the way. At Unity Insurance, we know insurance plays a vital role in every stage of your life and business so our professionals provide guidance and support to ensure you make the right decisions regarding your insurance options.
If you need assistance with business insurance, medical office insurance, or employee benefits, our team is here to help. Contact us at 410-539-6642 to schedule a policy review today!