If you run a healthcare business, you might know it comes with a range of challenges and risks.
From physical therapy clinics to chiropractic offices, these practices face a number of potential liabilities.
And these can have significant financial and reputational consequences.
In this guide, we explore some of the common insurance covers healthcare businesses should consider.
But first, let’s look at a case study that shows how insurance can work in healthcare.
Dr S Tarek Shalabi is Cosmetic Doctor Brisbane’s owner and co-founder. The business specialises in non-surgical cosmetic medicine. As a medical practice, the firm is required to carry public liability and professional indemnity insurance. As an injectables cosmetic clinic, contents insurance is also a must, given the high-value nature of the product.
The practice has never made a claim on its policies. Dr Shalabi credits this to the resources his medical indemnity insurer has in place to help prevent a situation from arising where he would need to make a claim.
“They are extremely helpful in situations where we would like to discuss a complex situation, for example, in cases where we have specific requests from patients which deviate from our normal practice,” says Dr Shalabi.
“They have a full team of doctors and medicolegal professionals available 24/7, in addition to a multitude of online guides, resources and case studies,” he says.
“They provide a great platform to discuss cases where there may be no immediate ‘right answers’ and provide us reassurance and backing when making decisions. On multiple occasions, they have guided us through the correct course of action to provide the best outcomes for our patients and to reduce the risk of a claim,” he adds.
“Healthcare businesses are exposed to a range of different risks that range from everything from malpractice claims to property damage and even theft”
What are the main insurances healthcare businesses may need?
Given the nature of their work, healthcare businesses are exposed to a range of different risks. These include everything from malpractice claims to property damage and even theft.
So, it’s important for businesses operating in the healthcare sector to have a well-thought-out risk management strategy, including appropriate insurance policies. Let’s take a look at some of the main policies healthcare businesses may need.
Professional indemnity insurance
Healthcare businesses are at risk of being sued by patients if they believe a healthcare professional has provided substandard care or has been negligent in their treatment, resulting in harm or injury.
This cover helps to protect healthcare professionals from claims related to errors, omissions or negligence in providing their services. It can cover legal defence costs, settlements and judgments.
Public liability insurance
This type of insurance provides protection for property damage and personal injury claims arising from accidents that occur on the business premises or as a result of business operations.
“This type of cover is essential for protecting against risks such as slip-and-fall accidents and equipment malfunctions,” says Steadfast’s Broker Technical Manager, Michael White.Recommended readingsHow Australian businesses can get staff back to the office
Business pack insurance
This protects the physical assets of a business, including the building, equipment, furniture and supplies, against perils such as fire, theft or vandalism. It can also provide cover for business interruption if the premises become temporarily unusable. In the case of cosmetic injectables, if they need to be kept in cold storage, the business would need to take out cover for deterioration of stock in cold storage.
Workers’ compensation insurance
If the health business has employees, workers’ compensation insurance is required by law. It provides medical benefits and wage replacement to employees who suffer work-related injuries or illnesses.
In today’s digital world, like most other businesses healthcare businesses are increasingly vulnerable to data breaches and cyberattacks. Cyber liability insurance helps cover the costs associated with data breaches, including legal expenses, notification and credit monitoring services and potential liability for compromised patient information.
Do you have the right cover?
A risk management strategy, including the right insurance, is essential for every healthcare business.
Talk to your broker today to find out more.