Medical Billing Insurance Policy Information
Medical Billing Insurance. Medical billing is the process of submitting and following up on claims with health insurance companies in order to receive payment for services rendered by a healthcare provider. The responsibility of the medical biller in a healthcare facility is to follow the claim to ensure the practice receives reimbursement for the work the providers perform.
Medical billing companies are open to a variety of risks including professional liabilities as well as general business risks. Protect yourself against these risks with medical billing insurance.
Medical billing insurance protects your business from lawsuits with rates as low as $37/mo. Get a fast quote and your certificate of insurance now.
Below are some answers to commonly asked medical billers insurance questions:
- What Is Medical Billing Insurance?
- How Much Does Medical Billing Insurance Cost?
- Why Do Medical Billers Need Insurance?
- What Type Of Insurance Do Medical Billers Need?
- What Does Medical Billing Insurance Cover & Pay For?
What Is Medical Billing Insurance?
Medical billing insurance refers to insurance policies that cover the cost of medical billing services, including the processing and submission of claims to health insurance companies.
This type of insurance helps healthcare providers, hospitals, and clinics to reduce the financial burden of managing their billing and payment processes, ensuring that they receive prompt and accurate payment for the services they provide. It can also help to minimize the risk of denied or delayed claims and provide peace of mind for medical practitioners and healthcare organizations.
How Much Does Medical Billing Insurance Cost?
The average price of a standard $1,000,000/$2,000,000 General Liability Insurance policy for small medical billing businesses ranges from $37 to $49 per month based on location, size, payroll, sales and experience.
Why Do Medical Billers Need Insurance?
As a medical biller, you are responsible for handling sensitive medical information and payment transactions. Insurance protects you against potential financial losses in case of errors, theft, or any other accidental or intentional misuse of sensitive information. Insurance also helps cover legal costs in case of lawsuits. By having insurance, medical billers can feel confident that they are protected and secure in their work.
Having insurance can also demonstrate a high level of professionalism and credibility in the industry, making it easier for medical billers to attract and retain clients. Moreover, insurance can help build trust with clients as they will know that the medical biller is protected against potential losses and is following industry standards and best practices.
Overall, insurance is an important aspect of the medical billing industry, providing financial and legal protection for medical billers, ensuring the safe handling of sensitive information, and helping to maintain credibility and trust with clients.
What Type Of Insurance Do Medical Billers Need?
Below is a list of the most commonly purchased medical billing insurance policies by medical billers:
Professional Liability Coverage - Also know as errors and omissions, this medical billing insurance policy will protect your medical billing business from claims of negligence related your services. It provides protection when you are sued for negligence because your work doesn't meet a client's expectations.
Professional liability insurance offers a variety of coverages:
- Alleged or actual negligence
- Legal defense costs
- Copyright infringement
Commercial General Liability - General liability is coverage for injuries that you cause to third parties. If someone sues you for personal injuries or property damage, the costs of defending and resolving the suit would be covered by your medical billing insurance policy.
If a client comes to your office and slips and fall - this coverage way pay for their injuries and your legal costs. The injuries or damages must actually be an inadvertent error, and not merely poor judgment or intentional acts.
Commercial Auto Coverage - Commercial auto insurance protects your medical billing company's vehicles. With commercial auto insurance you can insure your cars, SUVs, vans and trucks from damage and collisions. A commercial auto policy includes both auto liability and physical damage coverages.
Auto liability insurance also protects your firm against suits filed by third parties who seek damages for bodily injury or property damage caused by an auto accident. Physical damage insurance includes both comprehensive and collision coverages.
Additional medical billing insurance coverages may be added to a commercial auto policy by an endorsement. Examples are uninsured and underinsured motorist coverage and auto medical payments coverage.
If you do not have company vehicles, but employees drive their own cars you should have non-owned auto liability to protect your medical billing company in case the employee does not have insurance or has inadequate coverage.
Workers' Compensation - Workers comp is not a luxury, but a necessity for your medical billing business. In fact, most states require that you have this policy in case you have hired any employees on a standard taxable wage, and not without reason.
In the event that any of your employees get hurt or have an accident, workers' compensation will cover the cost of medical expenses, benefits, and wage replacements.
Business Property Coverage - Your own workplace needs to be protected from natural disasters, accidents and criminal activity. Disasters happen: sometimes they're unpredictable. If your office catches fire, you could lose everything. If your business building is damaged and everything is lost inside, you can use this policy to cover the costs of your loss.
Property insurance policies comes in two basic forms:
- All-Risk policies covering a wide-range of incidents and perils except those noted in the policy;
- Peril-Specific policies that cover losses from only those perils listed in the medical billing insurance policy. Examples of peril-specific policies include fire, flood, crime and business interruption insurance.
Business interruption coverage - If a disaster or catastrophic event does occur, your operations will likely be interrupted. During this time, your medical billing business will suffer from lost income due to your staff's inability to work in the office. Business interruption insurance compensates your business for its lost income during these events.
Business Owner's Policy (BOP) - A business owner's policy, or BOP, will bundle many different types of insurance into one policy to provide comprehensive coverage. These types of policies typically include:
- Business interruption
- Property insurance
- Vehicle insurance
- Crime insurance
Depending on what your company's needs are, you can customize the policy to your own specific needs. A BOP is typically the most cost-effective insurance option as this bundled policy costs less than purchasing each policy individually.
What Does Medical Billing Insurance Cover & Pay For?
Medical billers can be sued for a variety of reasons, including but not limited to, billing errors, negligence, breach of contract, and violations of privacy. Here are some examples of these situations, and how insurance can help pay for the lawsuit in each case:
Billing Errors: Medical billers can be sued for billing errors such as overcharging, undercharging, or double-billing patients or insurance companies. In this situation, professional liability insurance (also known as errors and omissions insurance) can help cover the legal costs and any damages awarded in a lawsuit related to these errors.
Negligence: If a medical biller is accused of negligence, such as failing to follow up on an unpaid claim or not adhering to the proper billing procedures, they can be sued. Professional liability insurance can help cover the costs of defending against such a lawsuit and any damages that may be awarded if the medical biller is found to be at fault.
Breach of Contract: Medical billers can be sued for breaching contracts with clients or insurance companies. For example, if a medical biller fails to submit claims within the agreed-upon timeframe or does not adhere to other contractual obligations. In this case, professional liability insurance can help cover the legal costs and any damages awarded in a lawsuit related to the breach of contract.
Violations of Privacy: Medical billers have access to sensitive patient information and are required to comply with privacy laws such as HIPAA (Health Insurance Portability and Accountability Act). If a medical biller is found to have violated these privacy laws, they can be sued. Cyber liability insurance can help cover the costs of defending against a lawsuit related to privacy violations, as well as any damages or fines that may be awarded.
In all these cases, insurance can help medical billers protect themselves from the financial burden of legal costs and damages awarded in lawsuits. It is essential for medical billers to have appropriate insurance coverage in place to protect their businesses and personal assets from potential legal disputes.
Commercial Insurance And Business Industry Classification
- SIC CODE: 8721 Accounting, Auditing, and Bookkeeping Services
- NAICS CODE: 541219 Other Accounting Services
- Suggested Workers Compensation Code(s): 8803 Auditor, Accountant, or Computer System Designer or Programmer - Traveling, 8810 Clerical Office Employees NOC
Description for 8721: Accounting, Auditing, and Bookkeeping Services
Division I: Services | Major Group 87: Engineering, Accounting, Research, Management, And Related Services | Industry Group 872: Accounting, Auditing, And Bookkeeping Services
8721 Accounting, Auditing, and Bookkeeping Services: Establishments primarily engaged in furnishing accounting, bookkeeping, and related auditing services. These establishments may use data processing and tabulating techniques as part of providing their services.
- Accounting service
- Auditing service, accounts
- Bookkeeping and billing service
- Certified public accountants (CPAs)
- Payroll accounting service
- Public accountants certified
Medical Billing Insurance - The Bottom Line
The cost of your cover will depend upon a few key factors including how much work you undertake annually, included policies, your previous experience and whether you have previously had claims made against you.
Generally speaking the cost of insurance for a medical biller has reduced in recent years as a result of greater competition and a greater awareness of the risks faced in the medical billing industry.
Additional Resources For Professional Services Insurance
Get informed about small business professional services insurance, including Professional liability, aka errors and omissions (E&O insurance), that protects your business against claims that a professional service you provided caused your client financial loss.
- Answering Service
- Armored Car
- Attorney Lawyer
- Background Music Services
- Business Consulting
- Chemical Engineers
- Civil Engineers
- Claims Adjuster
- Commercial Laundries
- Commodity Broker
- Corporate Wellness
- Court Reporter
- Credit Bureaus
- Debt Collection Agency
- Detective Agency
- Diaper Services
- Electrical Engineering
- Environmental Consultant
- Executive, Career & Life Coaching
- Executive Search Firm
- Expert Witness
- Financial Planner
- Financial Services
- Funeral Directors
- HR Consultant
- Inspection Bureaus
- Insurance Agents & Brokers Insurance
- Mediator - Arbitrator
- Medical Billing
- Music, Drama & Dance Therapy
- Office Machine Repair & Maintenance
- Piano Tuners
- Project Management
- Safety Consultants
- Speakers Bureaus
- Tax Preparer
- Temporary Staffing
- Title Abstractors
- Valet Parking
- Specialty Consultants
- Specialty Service Business
The professional services industry, which includes occupations such as lawyers, doctors, accountants, and architects, often deals with sensitive and complex issues that carry a high risk of liability. These professionals are expected to provide their clients with expert advice and guidance, and any mistakes or oversights can result in significant financial consequences for both the client and the professional. This is where insurance comes into play.
Business insurance provides protection against the financial repercussions of potential mistakes or accidents that may occur while providing professional services. For example, a lawyer may make an error in their legal representation that leads to a financial loss for their client. Without insurance, the lawyer would be personally responsible for covering the cost of this loss. Insurance helps to protect professionals from these types of financial burdens and allows them to focus on providing high-quality services to their clients.
In addition to protecting against financial losses, commercial insurance can also provide legal defense for professionals facing legal action as a result of their work. This can be especially important for professionals in high-stress or high-risk fields, such as doctors or architects, who may be at a higher risk of being sued for professional negligence.
Overall, the professional services industry needs insurance to protect against financial losses and legal action, ensuring that professionals can continue to provide high-quality services to their clients without the added stress and burden of potential financial consequences.
Minimum recommended small business insurance coverage: Business Personal Property, Employee Dishonesty, Accounts Receivable, Computers, Valuable Papers and Records, General Liability, Employee Benefits Liability, Professional Liability, Umbrella Liability, Hired and Non-owned Auto Liability & Workers Compensation.
Other commercial insurance policies to consider: Building, Business Income with Extra Expense, Earthquake, Equipment Breakdown, Flood, Computer Fraud, Forgery, Money and Securities, Special Floater, Cyber Liability, Employment-related Practices Liability, Business Auto Liability and Physical Damage and Stop Gap Liability.