Property & Casualty Insurance Coverages Available to Medical Practices

Our plans Include:

Business Owner’s Policy (BOP)

A BOP policy combines the basic coverage requirements a small to medium size business owner would need into a package that is typically less expensive than purchasing the coverage individually.

What does your policy cover?

  • Your property, including the building and/or contents of the building (equipment, inventory, furniture, etc.) including the cost of any build out or tenant improvements on a replacement cost basis.
  • Your business should you suffer a property loss, can cover your revenue loss and your continuing operating expenses such as rent and payroll.
  • You and your business from lawsuits arising from accidents or injury to other people on your property, accidents that might cause property damage to another person’s property, personal injury items such as copyright infringement or false advertising.
  • Any money or securities taken by burglary or theft and losses caused by dishonest acts of your employees.
  • Vehicles you rent or borrow.

What doesn’t a BOP cover?

Your BOP does not usually cover floods, owned vehicles, group health insurance, workers’ compensation and certain liability coverages such as errors & omissions, malpractice, and directors & officers’ liability. EPLI and Cyber liability can be added on a very limited basis with some insurance companies.

Workers’ Compensation

Workers’ compensation insurance typically is required if you have 5 or more employees. Workers’ Compensation provides payment of medical bills and lost income to an employee in the event of a work related injury. Workers’ compensation also provides coverage to the employer for claims alleging an unsafe work place. Coverage includes:

  • Income benefits
  • Medical expense benefits
  • Funeral expense benefits
  • Rehabilitation benefits
  • Employers’ liability coverage

Umbrella/Excess Liability

Commercial Umbrellas polices increase your business liability over and above the limits on your BOP policy. An umbrella policy can also be purchased over and above your professional liability (malpractice) policy, if additional limits are needed.

Excess Earthquake Coverage

We can assist you in securing adequate limits in addition to your current property/EQ coverage.

Commercial Auto Coverage

Protects you against financial loss resulting from accidents involving the vehicles you use in your business. Can provide hired and nonowned coverage under the general liability, and/or physical damage and liability coverage for vehicles your practice owns.

Directors & Officers Liability (D&O)

What is D&O Insurance?

The goal of D&O insurance is to provide financial protection to directors and officers of a practice from liability in the event of a claim or lawsuit against them asserting wrongdoing in connection with the company’s business. Directors and officers can also be sued for performance of their duties as they relate to the company.

Who needs it?

When a person becomes a board member, they assume a level of responsibility (“duty of care”) and expose themselves to litigation for failing to run and manage the business in a proper way. This insurance protects the directors, officers and/or board members personal financials from being exposed to lawsuits brought on by employees, providers, outside regulators, vendors, etc. The types of allegations are not covered by any other policy.

Employment Practices Liability Insurance (EPLI)

This coverage is designed to protect against employment related risks as well as incidents falling under the Americans with Disabilities Act. Financial loss to a practice can be catastrophic when not covered in a suit of this nature. If you do not have coverage for employment practices liability, your insurance package may not be complete or adequate for all exposures.

What does EPLI cover?

EPLI provides insurance coverage for claims such as:

  • Wrongful Termination
  • Defamation
  • Discrimination
  • Harassment
  • Humiliation
  • Slander
  • Hostile workplace environment

How prevalent are suits related to employment practices?

The Equal Employment Opportunity Commission (EEOC) reports that it recovered over $251 million on behalf of complainants for the more than 85,000 charges it resolves on an annual basis. As an employer, you must be prepared to defend yourself, even against groundless allegations. Such defenses can be time consuming and expensive.

What can I do to protect myself and my practice?

Your general liability policy typically does not usually provide the needed coverage, nor will your workers’ compensation plan. We can provide coverage for your practice against these claims.

These types of claims continue to grow. It is important that you consider the consequences of these exposures as they may apply to your own situation.

Errors & Omissions Liability (E&O)

What is E&O Insurance?

E&O professional liability insurance is purchased by companies to protect against the costly litigation that could arise from claims alleging negligence or inadequacy in the performance of their professional services. E&O coverage also protects the mistakes of employees and independent contractors the firm may hire. This coverage is not provided.

This coverage is not provided by your general liability policy.

Who needs it?

E&O coverage is recommended for any company that provides a service to clients. More popular professions who purchase E&O insurance include doctors, lawyers, dentists, accountants and architects. If you provide a service for a fee, you have an E&O exposure.

Fiduciary Liability

ERISA renders fiduciaries personally liable if they breach any of the responsibilities, obligations or duties imposed upon them under law. ERISA was enacted to protect participants and beneficiaries of employee pension and welfare plans. It establishes standards of conduct for fiduciaries. Fiduciaries of employee benefit plans assume personal liability in connection with the management and administration of those plans. Knowledge of responsibilities and duties under ERISA is essential as you owe certain stringent obligations to the participants of the plan. If plan fiduciaries beach any of their duties under ERISA or fail to meet other reporting and disclosure requirements, they may be personally liable for any resulting losses to an employee benefit plan.

Cyber Liability

Health care organizations that utilize electronic records or are in the process of working towards that standard, face significant exposure to data security breach risks. Cyber liability insurance provides protection for risk not generally found in traditional insurance coverage such as property, D&O, E&O or general liability. Federal and state laws mandate that your company take (and bear the expense of) certain measures in the event of a security breach.

For additional information, please contact:

Blayne Burns, Sr. Director of Operations
Direct: 901-821-6739
Mobile: 901-351-2245
Email Blayne