Part 1: Insurance Demystified
Part 1: Insurance Demystified for a Health Practice
Running a practice can be risky. Practice owners carry several risks and liabilities which can mean unnecessary legal expenses, fines, and loss of profit for the practice. Insurance helps in offsetting the cost of an event by letting you claim first party loss (related to your own business) or third-party fees (for another business or individual you maybe liable for).
- Practice Medical Indemnity insurance
- Cyber Liability Insurance
- Business Pack
- General Liability
- Management Liability Insurance
- Workers Compensation
- Other insurances : Trademark Insurance, Legal Expense Insurance, etc
You must have an idea of value of your key assets, your legal obligations, your projected revenue, whether you shall hire full time or contractors as staff, how many general or specialist practitioners will work in the practice, how will you store your patient records, risk management and governance practices, a business plan etc. in place. You must then decide on limits and excess for each insurance policy you wish to apply for.
You must review premiums costs, coverage, excess, limits, and exclusions of the policy. Once you bind your policy, you must ensure you are conforming to continuous disclosure obligation, governance, and risk management. Insurance never pays for negligence – therefore make sure you train your staff and keep up with your compliance.
A claim is a formal request to your insurance company to receive money to help your practice pay for expenses caused by a policy event like a cyber incident. The insurance company then accepts and confirms the claim and, once approved it results in the claim payment. A claim is always made for a $$ dollar amount.
Disclaimer: All information provided above is general information only. It does not take into account your personal or business circumstances.