Blood Bank Insurance Policy Information
Blood Bank Insurance. Blood banks play a vital role in the health care system, by separating donated blood into its component parts, testing it, and storing it - in a state where it's ready to save lives at any time. Blood banks may collect blood from donors, or that particular stage in the process may be performed elsewhere.
Blood banks draw blood from donors, determine its blood type (A, B, AB or O) and Rh type (positive or negative), and test it for irregularities such as hepatitis or HIV. If acceptable, the blood is separated into components (red blood cells, plasma, and platelets), then stored for transfusion to recipients.
While storage is generally by refrigeration and limited to 42 days, some components may be frozen for longer periods of time. While whole blood is generally provided by volunteer donors, plasma banks may pay for donations.
The blood bank may be a separate freestanding facility or it may be part of a larger laboratory in a hospital setting.
The existence of blood banks continuously saves lives, as blood transfusions quite literally represent a life line for a multitude of patients, whether they suffer from medical conditions such as hemophilia, or suffered traumas in which they lost large amounts of blood.
In performing their critical services, however, blood banks also face a number of risks. Each of these major perils has the potential to bring devastating costs with it, and that it is why it is vital for blood banks to carry extensive insurance.
What types of blood bank insurance might be needed? Learn more in this brief guide.
Blood bank insurance protects your blood donation operation from lawsuits with rates as low as $67/mo. Get a fast quote and your certificate of insurance now.
Below are some answers to commonly asked blood bank insurance questions:
- What Is Blood Bank Insurance?
- How Much Does Blood Bank Insurance Cost?
- Why Do Blood Banks Need Insurance?
- What Type Of Insurance Do Blood Banks Need?
- What Does Blood Bank Insurance Cover & Pay For?
What Is Blood Bank Insurance?
Blood Bank insurance is a type of insurance policy that covers the risk and liability associated with blood banks. This type of insurance provides financial protection to the blood bank in case of any claims arising from the collection, storage, distribution, and transfusion of blood and blood products.
The policy covers costs related to medical malpractice, product liability, and other risks associated with the operation of a blood bank. The coverage also includes protection for the blood bank against any lawsuits or compensation claims related to the provision of blood products.
How Much Does Blood Bank Insurance Cost?
The average price of a standard $1,000,000/$2,000,000 General Liability Insurance policy for small blood banks ranges from $67 to $89 per month based on location, size, revenue, claims history and more.
Why Do Blood Banks Need Insurance?
Similar to any commercial venture or even private residence, blood banks can be confronted with a number of perils at any time. Some or the risks blood banks have to consider are almost universal, while others are specific to this field.
The right insurance plan cannot only help blood banks meet legal requirements, but also ensure that mishaps do not cause undue strain on predetermined budgets. A blood bank that has invested in proper insurance can overcome any of the risks it may encounter much more easily.
The facility itself may, along with its precious contents, be hit by an act of nature - wildfires, earthquakes, and severe floods are merely some of the possibilities. Theft and vandalism may cause damage to equipment vital to the process of separating blood into its components or testing its safety, or the equipment may spontaneously break down.
Anyone, whether a blood donor, a recipient, or an employee exposed to blood products may file a lawsuit alleging bodily harm or property damage.
As you may imagine, any of these perils have the unfortunate potential of leading to massive expenses. Organizations that have the right blood bank insurance plans, however, will be able to overcome the challenge, as a significant portion of the costs will be covered by the insurance company.
What Type Of Insurance Do Blood Banks Need?
Blood banks will need to carry various types of insurance. The specific kinds of coverage that will best protect a blood bank from the perils it may face depend on factors such as the jurisdiction where the blood bank is based, the volume of blood products it handles, the equipment it uses, and how many employees it has.
An insurance broker who specializes in the health care niche is optimally equipped to advise individual blood banks about their particular insurance needs. However, some of the most important types of blood bank insurance coverage are:
- Commercial Property: This type of coverage protects against financial losses if the building in which a blood bank operates is damaged in acts of nature, or due to theft or vandalism. The assets inside, which will include equipment and blood products, are also covered.
- General Liability: Designed to cover attorney fees and settlement costs in case a third party files a personal injury or property damage claim, this type of blood bank insurance is essential. It covers instances in which someone trips on a wet floor, for instance, or in which a blood bank employee accidentally causes damage to personal property.
- Workers' Compensation: This type of insurance helps blood banks shoulder the burden associated with work-related injuries or illnesses employees may sustain, such as because they were exposed to blood products. The employee's medical bills are covered, alongside lost income if they are unable to return to work for a time.
- Malpractice: Blood banks will also need to carry malpractice insurance - a type of coverage that offers protection in the event of lawsuits in which medical errors or negligence are alleged.
While these forms of insurance will be essential for any blood bank, bear in mind that additional kinds of coverage may also be required.
Consulting an experienced insurance broker who is familiar with the medical field will be able to answer any questions they may have, as well as helping them craft the best possible blood bank insurance plan.
Blood Bank's Risks & Exposures
Premises liability exposure is moderate due to public access to the premises. To prevent trips, slips, and falls, all areas accessible to donors must be well maintained with floor covering in good condition. The number of exits must be sufficient, and be well marked, with backup lighting in case of power failure. Steps should have handrails, be illuminated, marked, and in good repair.
Parking lots should be maintained free of ice and snow. Housekeeping should be excellent and spills must be cleaned up promptly. Overhead equipment should be moved before donors exit collection chairs. Drinks should be provided to donors who may feel lightheaded after donating blood.
Confidentiality of donor records is critical as the unauthorized release of information relating to a donor's medical and social history could result in personal injury.
Products liability exposure is light because blood is considered a service, not a product, under product liability statutes. The exposure increases if the blood bank sells blood or its parts to a manufacturer as a component which can be combined with other ingredients in a final product.
Environmental impairment exposure is significant due to the potential for contaminating the air, ground, or water from improperly disposing of medical waste, including contaminants such as hepatitis B or the AIDS virus. Disposal must be documented and meet all FDA and EPA standards.
Professional exposures are extensive. The exposure increases if the blood bank fails to conduct thorough background checks to verify employees' credentials, education, and licensing. Incorrect typing of blood or failure to detect communicable conditions can result in transmission of disease, injury, or even death to the recipient of donated blood.
Exact protocols must be followed. Needles and other equipment must be sterilized and sanitized to prevent the spread of blood-borne infectious diseases such as hepatitis, HIV, and AIDS. Sterile environments must be maintained in order to prevent contamination.
Workers compensation exposure can be very high as workers routinely handle donations that may carry blood-borne pathogens. Gloves and masks must be worn at all times when working around any bodily fluids. Employees should have access to vaccinations to prevent diseases. Employees may receive puncture wounds from needles. Constant cleansing with disinfectants can result in dermatitis to exposed skin.
Back injuries, sprains, and strains can occur when assisting or lifting donors. Slips and falls can occur from tripping over objects or slick floors. Since donor information and billings are done on computers, potential injuries include eyestrain, neck strain, carpal tunnel syndrome, and similar cumulative trauma injuries that can be addressed through ergonomically designed workstations.
Drivers of bloodmobiles may be injured in automobile accidents or suffer back injuries from lifting.
Property exposures can be high as blood banks rely on sophisticated high-value equipment for testing and processing blood. Ignition sources include electrical wiring, heating, and air conditioning systems, and overheating of equipment. Equipment, especially refrigeration and freezing units, must be well maintained. Electrical wiring must meet all current codes.
Smoking should be prohibited. Blood banks require sterile conditions. A small fire could cause a total loss due to smoke contamination requiring re-sterilization. Business interruption and extra expense are significant due to the high cost of diagnostic equipment and the time it may take to repair or replace a damaged item.
Equipment breakdown exposure is high as operations are dependent on the equipment used in drawing, testing, and storing blood. A breakdown could be costly due to the time to install replacement parts or the lack of appropriate backup facilities. All equipment should be maintained on an ongoing basis.
Crime exposures are from employee dishonesty. Background checks, including criminal history, should be obtained on each employee prior to hiring. Ordering and billing must be handled by two different employees.
Inland marine exposure consists of accounts receivable if the blood bank bills for services, computers and valuable papers and records for donors' and suppliers' information as well as analysis reports. Analytical equipment may be computerized.
Some equipment may be mobile if any collection takes place off site or if the equipment is shared between locations. Records should be duplicated and stored in an off-site facility.
Commercial auto exposure is generally limited to hired and non-owned liability for employees running errands. Mobile blood banks may travel to donor locations such as offices, shopping malls, or residential areas. All drivers should be licensed with acceptable MVRs.
Vehicle maintenance should be ongoing and documented in a central location. If the blood bank transports blood, a spill could have an adverse impact on the environment or others with whom the blood comes into contact.
What Does Blood Bank Insurance Cover & Pay For?
Blood banks may face various claims or lawsuits from patients, donors, or their families. Some examples of blood bank claims are:
Contaminated blood transfusion: If a patient receives contaminated blood during a transfusion, they may suffer serious health complications or infections, such as HIV or Hepatitis C. In such cases, the patient may file a lawsuit against the blood bank, alleging negligence or failure to screen the blood properly. Medical malpractice insurance can help pay for the legal defense costs, settlements, or judgments in such cases.
Wrong blood type transfusion: If a patient receives the wrong blood type during a transfusion, it can lead to severe reactions, such as hemolytic transfusion reactions, which can be life-threatening. The patient may sue the blood bank for damages, claiming negligence or lack of proper identification procedures. Medical malpractice insurance can help cover the legal expenses and compensation for the plaintiff.
Delayed or improper blood transfusion: If a patient suffers harm or complications due to delayed or improper blood transfusion, they may hold the blood bank responsible for negligence or breach of duty. For example, if a patient in critical condition does not receive blood promptly due to an error or staff shortage, it can lead to severe consequences. Medical malpractice insurance can help pay for the costs of defending against such claims and any damages awarded to the plaintiff.
Failure to inform donor of positive test results: Blood banks are responsible for informing donors of any positive test results for infectious diseases, such as HIV or Hepatitis B or C. If a donor is not informed of their positive test result and continues to donate blood, it can put others at risk of infection. The affected donor or the recipient may file a lawsuit against the blood bank for damages, alleging negligence or failure to follow proper protocols. Medical malpractice insurance can help cover the costs of litigation and any damages awarded to the plaintiff.
In summary, medical malpractice insurance can protect blood banks from various claims and lawsuits arising from transfusion-related injuries or infections. The insurance can help pay for the legal defense costs, settlements, or judgments, which can be substantial and threaten the financial stability of the blood bank.
Commercial Insurance And Business Industry Classification
- SIC CODE: 8099 Health and Allied Services, Not Elsewhere Classified
- NAICS CODE: 621991 Blood and Organ Banks
- Suggested Workers Compensation Code(s): 8833 Hospital - Professional Employees, 9040 Hospital - All Other Employees
Description for 8099: Health and Allied Services, Not Elsewhere Classified
Division I: Services | Major Group 80: Health Services | Industry Group 809: Miscellaneous Health And Allied Services, Not Elsewhere Classified
8099 Health and Allied Services, Not Elsewhere Classified: Establishments primarily engaged in providing health and allied services, not elsewhere classified. Offices and clinics of health practitioners are classified according to their primary activity in Industry Groups 801 through 804.
- Artists, medical
- Blood banks
- Blood donor stations
- Childbirth preparation classes
- Health screening service
- Hearing testing service
- Insurance physical examination service, except by physicians
- Medical photography and art
- Osteoporosis centers
- Oxygen tent service
- Physical examination service, except by physicians
- Plasmapheresis Centers
- Sperm banks
Blood Bank Insurance - The Bottom Line
For the safety of your donors, your operation and your employees - having the correct blood bank insurance coverage is essential. To discover what types of policy options are available to you including coverages, exclusions and premiums, speak to a reputable commercial insurance broker.
Additional Resources For Medical Insurance
Discover small business insurance for medical and dental professionals. Medical malpractice insurance is a type of professional liability that protects health care professionals from liability causing in bodily injury, medical expenses and property damage.
- Ambulatory Surgical Center
- Art Therapy
- Assisted Living Facilities
- Blood Banks
- Dental Lab
- Dental Office
- Diagnostic Imaging Centers
- Health Maintenance Organizations
- Healthcare Facilities
- Home Medical Equipment Dealers
- Marriage & Family Therapy
- Medical Clinics
- Medical Laboratories
- Medical Marijuana Dispensary
- Medical Practice
- Medical, Surgical & Hospital Supply Store
- Mental Health Counseling
- Nurse Registry
- Occupational Therapy
- Osteopathic Physicians
- Physicians Office
- Plastic Surgeons
- Skilled Nursing Facilities
- Speech Therapy
- Substance Abuse Counseling
- Telemedicine Business Insurance
- Specialty Medical Centers And Clinics
- Specialty Medical Malpractice
The medical industry is a crucial sector that plays a vital role in ensuring the health and well-being of individuals. It is a complex and highly regulated industry that requires specialized knowledge and expertise. As a result, the medical industry is exposed to a variety of risks, including legal and financial liabilities.
One of the main reasons why the medical industry needs commercial insurance is to protect against medical malpractice. Medical malpractice occurs when a healthcare provider deviates from the standard of care and causes harm to a patient. It can lead to costly lawsuits and significant financial losses for the healthcare provider. Business insurance helps to cover these costs and protect the financial stability of the medical facility.
Another reason the medical industry needs business insurance is to cover the cost of regulatory fines and penalties. The medical industry is subject to strict regulations and any violations can result in significant fines and penalties. Business insurance helps to cover these costs and protect the financial stability of the medical practice or facility.
In addition, the medical industry is vulnerable to data breaches and cyber attacks. These incidents can result in significant financial losses and reputational damage for the medical facility. Business insurance helps to cover the cost of recovering from a data breach or cyber attack and helps to protect the reputation of the medical facility or practice.
Overall, business malpractice insurance is an essential component of the medical industry. It helps to protect against the financial and reputational risks associated with the medical industry and helps to ensure the financial stability and success of medical practices and facilities.
Minimum recommended small business insurance coverage: Business Personal Property, Business Income and Extra Expense, Employee Dishonesty, Money and Securities, Accounts Receivable, Computers, Physicians and Surgeons Floater, Valuable Papers and Records, General Liability, Employee Benefits, Professional, Umbrella, Hired and Non-owned Auto & Workers Compensation.
Other commercial insurance policies to consider: Building, Earthquake, Equipment Breakdown, Flood, Leasehold Interest, Real Property Legal Liability, Computer Fraud, Forgery, Cyber Liability, Employment-related Practices, Business Automobile Liability and Physical Damage and Stop Gap Liability.