7 Types of Insurance Every Physician Should Get: Are You Leaving Your Professional Fate to Chance?
Physicians need several types of insurance coverage. They need to be insured individually, and business insurance is a must. Consult with an insurance agent about the best coverage for a medical practice. There are seven major areas of concern.
Disability Insurance
Physician’s disability insurance replaces lost income in the event of a disabling medical condition. Most insurance companies allow the physician to receive up to 60% of their pre-disability income. Talk to the agents at insurestat.com to learn more. When should a physician buy disability insurance? The younger a person is, the lower the rates are. Further, the rates are fixed for the duration of a physician’s career. Additional riders are available including a cost-of-living benefit that adjusts the amount of the disability check.
Malpractice Insurance
Malpractice insurance covers physicians and other professionals against negligence claims. Face it, physicians can make incorrect diagnoses and other errors. A recent study indicates most physicians will need malpractice insurance at some point in their careers. Remember, 20,000 medical malpractice suits are filed each year. Physicians are personally responsible for judgments if they don’t have the proper insurance coverage.
Additionally, states require physicians to have malpractice insurance to work in hospitals. Premiums are based on the physician’s specialty and where they practice. Obstetricians pay some of the highest malpractice premiums. Interestingly, insurers don’t use claims history in determining a premium.
Data Breach/Cyber Breach
Everything is online these days, including patient medical records. Hackers can get into a physician’s system and steal all kinds of personal information. This coverage provides funds for a business to react quickly to a data breach. A fast reaction restores patient confidence and mitigates further damage. Many insurance companies provide software and systems to clients in order to prevent a breach.
Life Insurance
Physicians need life insurance if their family is dependent on their income. The simplest form of life insurance is term life. Term life pays a certain amount to the family in the event of your untimely death. In return, premiums are paid periodically and they remain fixed for a period of years. The premium amount is based on age, smoking history, and whether there are any pre-existing conditions.
Key-Man Insurance
This coverage is important when a physician is in a group practice. The other physicians depend on your financial contribution to the practice. Key person coverage pays the partners in the event of your death. The pay-off ensures there will be no interruption of business.
Workers Compensation
Physicians must have workers compensation insurance if they have more than two employees. Workers comp pays the wages and medical bills of employees injured on the job. The physician can also be covered under the policy. Injuries do occur in medical settings. Most importantly, this coverage is required by law.
Business Liability Coverage
Every business needs liability insurance, including a physician’s office. Accidents happen, and clients may try to sue. Owning this coverage affords a physician the luxury of having the insurer handle the claim. In the event of a lawsuit, the insurance company hires the defense attorney. Further, this critical coverage pays for the building in the event of a fire. Many umbrella policies cover the costs of business interruption during a fire or other disaster.
Insurance coverage gives physicians peace of mind. Talk to an insurance agent about what coverage is needed. Protect yourself and the practice from unexpected claims.
