Am I Covered? Insurance policies your healthcare business needs

How well do you understand your commercial insurance coverage?

New challenges seem to surface on a daily basis in the healthcare and assisted living industry. From keeping up with compliance, to just managing the day to day, success means managing the inherent risk that follows. Even with thorough training and sound policies, the unexpected can – and usually does - happen.

You might be thinking, “That’s what insurance is for, right?” But do you really know and understand how each of your insurance policies covers your business, employees and patients? We’re going through the top seven insurance policies every healthcare business needs and how they protect you.

General Liability

Think of general liability as covering the basics in terms of clients and visitors. Non-employee injuries on company property and property damages caused by employees are covered under general liability. General liability covers General liability covers falls and other serious injuries that happen at your facility. It could also cover damages to a client’s house during a caregiver visit, or even charges of false advertising.

Workers’ Compensation

In contrast to general liability, workers’ compensation covers losses suffered when an employee becomes injured while on the job. Workers’ compensation helps pay medical bills and lost wages to the employee, while protecting your business from lawsuits. Nearly every state requires employers to provide workers’ compensation benefits, but the requirements vary.

Professional Liability

A professional liability policy covers claims of professional negligence. Say an employee doesn’t show up at a patient’s home when scheduled, and because of her absence the client fails to receive necessary care. On the other hand, a caregiver might administer medication improperly. In either case, if the client becomes hurt, they could sue the business. A professional liability policy would help pay the legal costs for your business, as well as damages paid to the client.

Crime

A crime policy primarily protects your company in the event of theft or fraud. This coverage can also be applied if an employee steals from a resident’s home.

Hired & Non-Owned Auto

Hired auto policies will cover vehicles used to transport clients - such as a contracted bus service. Non-owned auto insurance would cover caregiver cars used on company business. Both policies cover injuries and damage caused in accidents, for your employees and clients and for third parties involved. But these policies only kick in after all other auto coverages have paid out.

Employment Practices Liability (EPLI)

In an industry based on relationships, a lot can happen. You hire carefully and thoughtfully, but even the most cautious employment practices might be seen as discriminatory or unfair. An EPLI policy could step in to cover legal costs, judgements and settlements related to discrimination claims. An EPLI policy also assists in harassment claims and labor disputes.

Abuse and Molestation Liability

Even with background checks on caregivers, your clients may be vulnerable to abuse. The National Council on Aging estimates that 1 in 10 seniors experience elder abuse. If a client makes an allegation of abuse against one of your employees, this policy will cover your business’s legal defense and help pay any damages awarded to the victim.

As insurers, we understand that policies and coverages can make your head spin. This list is merely a short overview of the different coverages your company may need. If you would like more detailed information on any of these insurance policies, don’t be afraid to reach out!