Hospital Insurance Policy Information
Hospital Insurance. Hospitals play an indispensable role in public health by making diagnoses, treating acute traumas, performing surgeries may save lives or improve them, and proving a broad range of additional services that may include, for example, dermatology and physical rehabilitation programs.
Hospitals and infirmaries provide medical treatment to patients on an outpatient or inpatient basis. Medical facilities include patient rooms for in-house treatment and care, medical testing laboratories, pharmacies, surgery or operating rooms, and access to both doctor and nursing care at all times.
While some hospitals support all types of medical care, including emergency medical assistance, others limit their services to such specialties as burn treatment, cardiology, intensive care, neurology, obstetrics/gynecology, oncology, orthopedics, pediatrics, psychiatry, radiology, spine treatment, or weight loss.
Many hospitals have cafeterias or restaurants, gift shops, and waiting areas for visitors. Some offer additional services such as counseling, health classes, libraries, religious services, and lodging for guests.
A hospital may be funded by charitable or religious organizations, Medicaid, Medicare, or private insurers. Some are teaching hospitals that provide training to medical students while offering lower-cost services to patients.
An infirmary is normally not as elaborate as a hospital; however, it does provide the same basic services on a more limited basis.
Some hospitals provide specialized care to certain populations, such as children's hospitals and military hospitals, while general hospitals typically have trauma centers (emergency rooms).
Infirmaries are, in contrast, technically any treatment facility - including temporary field hospitals. Today, any facility that refers to itself as an infirmary is most likely to either be a small hospital or a clinic within a larger hospital.
Hospitals and infirmaries have the goal of saving lives and improving patient health, but they by nature face a slew of unexpected circumstances.
While carrying the right policies is vital for all commercial ventures and governmental institutions alike, it is of special importance to hospitals and infirmaries. What types of hospital insurance coverage might these facilities need?
Hospital insurance protects your medical facility from lawsuits with rates as low as $147/mo. Get a fast quote and your certificate of insurance now.
Below are some answers to commonly asked hospital insurance questions:
- How Much Does Hospital Insurance Cost?
- Why Do Hospitals Need Insurance?
- What Type Of Insurance Do Hospitals Need?
How Much Does Hospital Insurance Cost?
The average price of a standard $1,000,000/$2,000,000 General Liability Insurance policy for small hospitals ranges from $147 to $239 per month based on location, size, revenue, claims history and more.
Why Do Hospitals Need Insurance?
The many perils hospitals and infirmaries could be confronted by all illustrate how essential it is to be properly insured - almost without exception, the perils health care facilities are vulnerable to are extremely costly.
Hospitals and infirmaries face some of the same risks shared by other kinds of businesses, of course. They would include acts of nature (wildfires, hurricanes, serious floods, storms, tornadoes, and others), theft and cyber theft, vandalism, and the possibility of sudden equipment malfunction, whether it pertains to elevators or MRI machines.
Since hospitals are by nature frequented by already at-risk people, however, the consequences could be even more severe than they would be for other commercial ventures.
health care facilities further have considerable liability risks. An employee could become injured on the job, including, for medical staff, in ways that exposes them to dangerous pathogens. Despite a surgeon's best efforts, poor patient outcomes can occur, and sometimes lead to costly, drawn-out, malpractice lawsuits.
Medical facilities simply could not continue to function for very long without comprehensive hospital insurance, which protects them from the financial consequences of all perils they are likely to encounter.
What Type Of Insurance Do Hospitals Need?
Each hospital is unique. The scope of the medical care they provide, how busy the facility is, how many employees they have and what their profession is, the jurisdiction in which the facility is based, and even geographical and climate factors all impact the risk profile of a hospital or infirmary.
Therewith, these variables determine the facility's insurance needs as well. A seasoned commercial insurance broker who specializes in the health care sector is an invaluable partner in deciding what insurance policies are best for a health care institution.
We can, however, provide a general overview of the most important types of hospital insurance for medical facilities:
- Commercial Property - This type of insurance is of a general nature; any business should carry it, as it provide coverage for the building and the physical assets therein in case of common perils such as acts of nature (typically excluding floods), theft, vandalism, and certain accidents (such as the accidental starting of a fire).
- Commercial General Liability - Another essential form of hospital insurance, general liability helps cover legal fees resulting from bodily injury and property damage claims occurring after commonplace scenarios. That means this form of insurance would cover harms a hospital caused or neglected to prevent only if those harms could have taken place almost anywhere - such as slipping on a wet floor or accidental damage to vehicles in parking lots.
- Hospital Medical Malpractice - This type of insurance covers the legal and settlement costs related to allegations of wrongful diagnosis, incorrect treatment, or medical negligence. Just as individual physicians must carry medical malpractice insurance, hospitals and infirmaries require coverage for the whole facility.
- Workers Compensation - Hospital staff could be injured in any number of ways. If the hospital or infirmary is in any way responsible, workers comp replaces any lost wages while they recover, and also provides funds for their medical bills.
These four types of coverage are important to any hospital or infirmary, but these facilities may have many additional needs - in the form of cyber insurance, auto insurance, and business interruption insurance, to name but a few.
Commercial insurance agents who specialize in the health care field are dedicated to finding the best possible type of hospital insurance coverage for these important healthcare facilities.
Hospital's Risks & Exposures
Premises liability exposure is high due to a large number of visitors to the premises and the impaired physical mobility of patients. Public and life safety code compliance is very important.
Excellent housekeeping is required to reduce the number of trips, slips, and falls. Spills must be cleaned up promptly. Hallways, rooms, and recreational areas must be orderly and well maintained.
Stairways, elevators, railings, and floor coverings should be in good condition. Exits should be clearly marked and free of obstacles. Adequate interior and exterior lighting should be available in the event of a power outage. Steps must have rails, be illuminated, marked, and in good maintenance and repair.
There should be a temperature-monitoring device in all bathing and showering areas to prevent scalding.
Parking lots should be maintained free of ice and snow. A major concern in the area of patient safety is the type of backup facilities available for power outages and loss of normal utilities. Emergency generators should be in place, checked and maintained periodically.
Security at the facility, as well as in the building, corridors, and any owned parking area needs to be carefully checked and reviewed because the facility may be held liable should a patient or visitor be attacked on the premises.
Should an emergency situation arise, there should be evacuation plans in place to quickly move patients to a safe area. Personal injury exposures include discrimination, invasion of privacy, and wrongful eviction.
Maintaining a patient's privacy is critical. Examination rooms, check-in and checkout stations must be in private areas so one patient cannot view information or overhear conversations regarding another patient's confidential information. Inappropriate touching and sexual misconduct must be considered.
Background checks should be conducted before hiring any employee. The hospital should be accredited and operate within the guidelines of that accreditation. If it is on probation, there should be active plans to comply with open recommendations to be taken off probationary status.
Environmental impairment exposure is significant due to the potential for contaminating the air, ground, or water supply by 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, medical malpractice, and directors and officers exposures are very high. Staff turnover is high, disrupting continuity in patient care. The exposure increases if the facility fails to conduct thorough background checks to verify employees' credentials, education, and licensing.
Hospitals should be subject to regular inspections by their accreditation organization. It should also be licensed and staffed based on federal and state requirements. The staff/patient ratio should be sufficient to provide adequate care for patients. Supervision is essential along with regular training, monitoring, and well-written and followed procedures.
Patients must be informed as to their rights to obtain or refuse medical care as described by state and federal law. Very serious losses may result from failure to secure patient approval before performing procedures.
Access to patients' records must be restricted to those having a legitimate reason for viewing them. Medical records must be duplicated and stored off-site. Both on-site and off-site records must be safeguarded to protect patients' right to privacy.
Patient plans should be in place and followed by all staff members. Only patients who are within the appropriate level of care within the hospital's license should be admitted and allowed to remain in the facility.
Needles and other equipment must be sterilized and sanitized to prevent the spread of blood-borne infectious diseases such as hepatitis, HIV and AIDS. There should be a formal review process in place for reviewing all incidents that may give rise to a claim of medical malpractice. The hospital environment can lend itself to the spread of diseases like MRSA if not handled immediately.
Access to all pharmaceuticals must be carefully controlled, with procedures in place for the proper dispensation to patients. Finally, inappropriate touching and sexual misconduct must be considered.
Workers compensation exposure comes from contact with patients, from infections, and from communicable diseases such as hepatitis, HIV, AIDS, or MRSA. Employees should have access to vaccinations to prevent diseases. Gloves and masks should be worn at all times when working around any bodily fluids. All CDC recommended procedures for handling bodily fluids must be followed.
Constant cleansing with disinfectants can result in the lung, eye, or skin irritations and reactions. Accidental piercings from needles and cuts from scalpels are common. X-ray technicians should wear leaded aprons to limit exposure to harmful radiation.
Back injuries, sprains, and strains can occur when assisting or lifting patients. Procedures should be in place for safely handling unruly or violent patients to minimize injury to both the patient and the employees.
Slips and falls can occur from tripping over objects or slick floors. Kitchen work includes the possibility of cuts, scrapes, and burns. Because patient 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.
Property exposures are extensive. Ignition sources include electrical wiring, heating, and air conditioning systems, diagnostic and treatment equipment, laundry equipment, and cooking appliances. All electrical wiring must be up to code and equipment properly maintained. Licensing and certification ensure that housekeeping is excellent and that controls are in place for patient safety.
Smoking is not permitted in hospitals and that ban must be enforced. There should be smoke detectors installed in all patient rooms and common areas. Oxygen and other surgical gases in use around the hospital are flammable and must be controlled. Even a small fire can cause extensive damage due to the requirement of a sterile environment.
All kitchen grills and deep fat fryers must have fire extinguishing protection, hoods, and filters. There should be automatic fuel shut off valves and adequate hand-held fire extinguishers.
Theft is a major concern because of the large quantities of drugs stored on premises. Tight controls must be in place including, but not limited to, inventory control and limited access to the drug room.
Business income and extra expense losses can be severe due to the cost of diagnostic equipment, the time it may take to repair or replace a damaged item, and the unavailability of backup facilities.
Equipment breakdown exposures are high as operations are dependent on medical equipment being available. All equipment must be maintained regularly.
Crime exposure comes from both employee dishonesty and money and securities. The potential for theft, directly or by means of identity theft, is great. Pre-employment checks, including criminal background checks, should be required for any employee with access to drugs or money. Inventory must be reviewed regularly and the drug areas must have limited access.
Regular monitoring with cameras can be helpful in deterring employee theft and monitoring patient treatment. All ordering, billing, and disbursements must be handled as separate duties. Regular inventories and audits must be conducted.
Money and securities can be a concern if payments are accepted on premises. Deposits should be made regularly and no money kept on premises overnight. Patients' property may be stolen by employees.
Inland marine exposure comes from accounts receivable for billings, computers, medical equipment, and valuable papers and records for employees', patients' and vendors' information. Most medical equipment is now run by computers and should be covered on a computer form. Some medical equipment may be shared with other facilities or be kept in mobile care units, requiring separate coverage as it is transported between locations.
Equipment being transported must be adequately secured to prevent movement during transit. All records should be duplicated and a copy kept off premises. There may be a bailees exposure if the hospital takes custody of the goods of others, such as laundry. Some hospitals may have extensive fine arts and statuary that should be covered under a fine arts form.
Commercial auto exposure is high because of the use of emergency vehicles and transportation of patients, officials, guests, and visitors because some may have an existing injury or have limited mobility. If there are owned vehicles, all drivers should be licensed with acceptable MVRs.
Vehicle maintenance should be ongoing and documented in a central location. Ambulance drivers must be trained to notice surroundings, particularly when going through congested traffic and intersections. If the ambulance service is contracted out, the hospital should require certificates of insurance from each provider.
Commercial Insurance And Business Industry Classification
- SIC CODE: 8062 General Medical And Surgical Hospitals, 8063 Psychiatric Hospitals, 8069 Specialty Hospitals, Except Psychiatric
- NAICS CODE: 622110 General Medical and Surgical Hospitals, 622210 Psychiatric and Substance Abuse Hospitals, 623210 Residential Intellectual and Developmental Disability Facilities, 623220 Residential Mental Health and Substance Abuse Facilities, 622310 Specialty (except Psychiatric and Substance Abuse) Hospitals
- Suggested ISO General Liability Code(s): 44436, 44435
- Suggested Workers Compensation Code(s): 9040, 8833
Description for 8062: General Medical And Surgical Hospitals
Division I: Services | Major Group 80: Health Services | Industry Group 806: Hospitals
8062 General Medical And Surgical Hospitals: Establishments primarily engaged in providing general medical and surgical services and other hospital services. Specialty hospitals are classified in Industries 8063 and 8069.
- General medical and surgical hospitals
Description for 8063 Psychiatric Hospitals
Division I: Services | Major Group 80: Health Services | Industry Group 806: Hospitals
8063: Psychiatric Hospitals: Establishments primarily engaged in providing diagnostic medical services and inpatient treatment for the mentally ill. Establishments, known as hospitals, primarily engaged in providing health care for the mentally retarded are classified in Industry 8051.
- Mental hospitals, except for the mentally retarded
- Psychiatric hospitals
Description for 8069: Specialty Hospitals, Except Psychiatric
Division I: Services | Major Group 80: Health Services | Industry Group 806: Hospitals
8069 Specialty Hospitals, Except Psychiatric: Establishments primarily engaged in providing diagnostic services, treatment, and other hospital services for specialized categories of patients, except mental. Psychiatric hospitals are classified in Industry 8063.
- Alcoholism rehabilitation hospitals
- Cancer hospitals
- Children's hospitals
- Chronic disease hospitals
- Drug addiction rehabilitation hospitals
- Eye, ear, nose, and throat hospitals: in-patient
- Hospitals, specialty: except psychiatric
- Maternity hospitals
- Orthopedic hospitals
- Rehabilitation hospitals: drug addiction and alcoholism
- Tuberculosis and other respiratory illness hospitals
Hospital Insurance - The Bottom Line
To learn more about the specific types of hospital insurance policies your facility needs - along with the coverages, exclusions and costs - consult with a reputable broker that is experienced in commercial insurance for medicine.
Types Of Small Business Insurance - Requirements & Regulations
Perhaps you have the next great idea for a product or service that you know will appeal to your local area. If you've got a business, you've got risks. Unexpected events and lawsuits can wipe out a business quickly, wasting all the time and money you've invested.
Operating a business is challenging enough without having to worry about suffering a significant financial loss due to unforeseen and unplanned circumstances. Small business insurance can protect your company from some of the more common losses experienced by business owners, such as property damage, business interruption, theft, liability, and employee injury.
Purchasing the appropriate commercial insurance coverage can make the difference between going out of business after a loss or recovering with minimal business interruption and financial impairment to your company's operations.
Insurance is so important to proper business function that both federal governments and state governments require companies to carry certain types. Thus, being properly insured also helps you protect your company by protecting it from government fines and penalties.
Small Business Insurance Information
In the business world, there are many risks faced by company's every day. The best way that business owners can protect themselves from these perils is by carrying the right insurance coverage.
The The National Association of Insurance Commissioners (NAIC) is the U.S. standard-setting and regulatory support organization. Through the NAIC, state insurance regulators establish standards and best practices, conduct peer review, and coordinate their regulatory oversight.
Commercial insurance is particularly important for small business owners, as they stand to lose a lot more. Should a situation arise - a lawsuit, property damage, theft, etc. - small business owners could end up facing serious financial turmoil.
According to the SBA, having the right insurance plan in place can help you avoid major pitfalls. Your business insurance should offer coverage for all of your assets. It should also include liability and casual coverage.
Types Of Small Business Insurance
Choosing the right type of coverage is absolutely vital. You've got plenty of options. Some you'll need. Some you won't. You should know what's available. Once you look over your options you'll need to conduct a thorough risk assessment. As you evaluate each type of insurance, ask yourself:
- What type of business am I running?
- What are common risks associated with this industry?
- Does this type of insurance cover a situation that could feasibly arise during the normal course of doing business?
- Does my state require me to carry this type of insurance?
- Does my lender or do any of my investors require me to carry this type of policy?
A licensed insurance agent or broker in your state can help you determine what kinds of coverages are prudent for your business types. If you find one licensed to sell multiple policies from multiple companies (independent agents) that person can often help you get the best insurance rates, too. Following is some information on some of the most common small business insurance policies:
|Business Insurance Policy Type||What Is Covered?|
|General Liability Insurance||What is covered under commercial general liability insurance? It steps in to pay claims when you lose a lawsuit with an injured customer, employee, or vendor. The injury could be physical, or it could be a financial loss based on advertising practices.|
|Workers Compensation Insurance||What is covered under workers compensation insurance? This type of insurance protects a business and its owner(s) from claims by employees who suffer a work-related injury, illness or disease. Workers comp typically provides the injured employee with benefits to cover medical expenses, a portion of his/her lost wages, rehabilitation costs if applicable, and permanent partial or permanent total disability.|
|Product Liability Insurance||What is covered under product liability insurance? I pays an injured party's settlement or lawsuit claim arising from a defective product. These are usually caused by design defects, manufacturing defects, or a failure to provide adequate warning or instructions as to how to safely use the product.|
|Commercial Property Insurance||What is covered under business property insurance? General liability policies don't cover damages to your business property. That's what commercial property insurance is for. It protects all of the physical parts of your business: your building, your inventory, and your equipment, giving you the funds you need to replace them in the event of a disaster. If you work from home, you might consider a Home Based Business Insurance policy instead.|
|Business Owners Policy (BOP)||What is covered under a business owners policy (BOP)? This is a policy designed for small, low-risk businesses. It simplifies the basic insurance purchase process by combining general liability policies with business income and commercial property insurance.|
|Commercial Auto Insurance||What is covered under business auto insurance? This type of insurance covers automobiles being used for business purposes. This could include a fleet of business-only vehicles or a single company car. In some cases it might cover your car or your employee's car while they're being used for business. These policies have much higher limits, ensuring you can cover your costs if one of these vehicles gets into an accident.|
|Commercial Umbrella Policies||What is covered under commercial umbrella insurance? This type of policy is a sort of "gap" insurance. It covers your liability in the event that a court verdict or settlement exceeds your general liability policy limits.|
|Liquor Liability Insurance||What is covered under liquor liability insurance? It covers bodily injury or property damage caused by an intoxicated person who was served liquor by the policy holder.|
|Professional Liability (Errors & Omissions)||What is covered under professional liability insurance? This type of business insurance is also known as malpractice oe E&O. It covers the damages that can arise from major mistakes, especially in high-stakes professions where mistakes can be devastating.|
|Surety Bond||What is covered under surety bonds? Bonding is a contract where one party, the SURETY (who assures the obligee that the principal can perform the task), guarantees the performance of certain obligations of a second party, the PRINCIPAL (the contractor or business who will perform the contractual obligation), to a third party, the OBLIGEE (the project owner who is the recipient of an obligation).|
Who Needs General Liability Insurance? - Virtually every business. A single lawsuit or settlement could bankrupt your business five times over. You might also need this policy to win business. Many companies and government agencies won't do business with your company until you can produce proof that you've obtained one of these policies.
Business Insurance Required by Law
If you have any employees most states will require you to carry worker's compensation and unemployment insurance. Some states require you to insure yourself even if you are the only employee working in the business.
Your insurance agent can help you check applicable state laws so you can bring your business into compliance.
Other Types Of Small Business Insurance
There are dozens of other, more specialized forms of small business insurance capable of covering specific problems and risks. These forms of insurance include:
- Business Interruption Insurance
- Commercial Flood Insurance
- Contractor's Insurance
- Cyber Liability
- Data Breach
- Directors and Officers
- Employment Practices Liability
- Environmental or Pollution Liability
- Management Liability
- Sexual Misconduct Liability
Whether you need any or all of these policies will depend on the results of your risk assessment. For example, you probably don't need an environmental or pollution policy if you're running an IT company out of a leased office, but you would need data breach and cyber liability policies to fully protect your business.
Also learn about small business insurance requirements for general liability, business property, commercial auto & workers compensation including small business commercial insurance costs. Call us (855) 767-7828.
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
- 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
- Occupational Therapy
- Osteopathic Physicians
- Physicians Office
- Plastic Surgeons
- Skilled Nursing Facilities
- Speech Therapy
- Substance Abuse Counseling
Health care providers are the most trusted individuals in our society. Ironically, they are the same ones who can do the greatest harm. They actually have the right to invade our bodies with knives and to poison us with chemicals - all in the name of health care and with the goal of relieving our symptoms and hopefully bringing about a cure.
While the actions of these professionals normally benefit us, insurance coverage must be available for the times when mistakes happen and things go wrong. These professionals and their facilities have extensive property exposures that are becoming more and more intricate and whose values are increasing exponentially.
The 'one size fits all' approach that once could have applied to insurance for health care providers and their facilities no longer applies.
Professional liability offers protection against claims of malpractice for all sums that the medical professional becomes legally obligated to pay as damages because of rendering or failing to render professional services.
Professional and medical malpractice exposures are the most expensive and difficult of all exposures for health care providers. The commercial general liability policy excludes these exposures so separate coverage is needed. Most professional liability policies are written on a claims-made basis and, as a result, tail coverage and retroactive dates are important coverage issues to be aware of when evaluating the insured’s coverage needs and comparing coverages.
The coverage provided is often called medical malpractice. For decades, many involved in the health care field and insurance companies that provide insurance coverage to providers have stated that malpractice lawsuits have created an ongoing crisis of restricting insurance availability, due to loss of insurance companies that write the coverage and significant rate increases.
As a result, state legislatures have taken the following actions to address the situation:
Imposed a dollar limitation of liability for malpractice suits.
Modified statutes of limitation to limit the number of years that a suit may be brought against a physician following a negligent act.
Modified when the statute of limitations takes effect. An example is beginning from a negligent act's occurrence rather than from its discovery.
Passed laws to modify tort law procedures and doctrines that relate to malpractice.
Because of differences in law by state it is important to know the states in which the covered health care providers are licensed and regularly practice. Some health care providers may practice in multiple states because of their particular specialty, their reputation or the demand for their services. Some hospitals may have ownership in facilities or provide services to patients that are outside of their main location state.
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.