As a medical office, it’s crucial to have the right insurance coverage in place to protect your business from potential liabilities and financial losses. With so many options available, it can be overwhelming to determine which insurance company and policy is the best fit for your needs. In this article, we’ll take a closer look at six of the best medical office insurance companies that we recommend and examine the pros and cons of each to help you make an informed decision.
- 6 best medical office insurance companies
- Which types of medical offices need business insurance?
- Why do medical offices need business insurance?
- What business insurance coverage medical offices need to have
- How much does business insurance cost for medical offices?
- What medical office owners can do to reduce their business insurance costs
- Where medical offices can get business insurance quotes
6 best medical office insurance companies
Finding the right company to buy your medical office insurance is important. The right company with the right coverage at an affordable rate can help you save money while having protection when you need it. Comparing quotes and coverage from several companies is the only want to make sure you are not overpaying for the coverage that you need. We have done intensive research and here are the 6 best providers of medical office insurance that we recommend:
- Simply Business: Best for finding high-quality low-cost coverage for medical offices
- CoverWallet: Best for comparing several quotes from top-tier carriers
- NEXT: Best digital carrier with affordable rates
- Allstate: Best option if you already have personal insurance with Allstate
- The Hartford: Best for comprehensive coverage for medical offices
- Smart Financial: Best brokerage firm if you prefer working with experienced agents
Simply Business: Best for finding high-quality low-cost coverage for medical offices
Simply Business is a leading provider of small business insurance in the United States. They are a well-known brokerage firm specializing in small business insurance. They offer various insurance options for medical offices, including general liability, professional liability or medical malpractice, cyber liability, and property insurance. Simply Business partners with more than 30 carriers, all of which are reputable and have excellent financial strength. Simply Business makes a special effort to partner with carriers that tend to provide a lower cost to help their customers save money on premiums.
Pros:
- Simple and easy to use online platform
- A wide range of coverage options
- Competitive pricing
Cons:
- Limited customer support options
- If you prefer a specific carrier that Simply Business doesn’t work with, you may need to look elsewhere.
CoverWallet: Best for comparing several quotes from top-tier carriers
CoverWallet is a digital insurance platform that specializes in providing insurance for small businesses. They offer a variety of insurance options for medical offices, including general liability, professional liability, cyber liability, and property insurance. CoverWallet prides itself on providing small business owners, including medical office owners, a great online quote comparison platform. After your submit your information, CoverWallet will provide you with 2-3 quotes to compare online. They partner with 20+ top-tier carriers.
Pros:
- Easy online application process
- Access to multiple top-tier insurance carriers
- Competitive pricing
Cons:
- Limited customer support options
- If you buy a policy through CoverWallet, you still have to file a claim directly with the carrier.
NEXT: Best digital carrier with affordable rates
NEXT is a digital carrier that offers a variety of insurance options for small businesses. They specialize in providing insurance for medical offices, including general liability, professional liability, cyber liability, business interruption, and property insurance. NEXT is a newer carrier with an excellent digital experience. You can get quotes and buy policies on NEXT website within 10 minutes.
While NEXT offers all types of insurance coverage for medical offices, their strength lies in general liability. You can rest assured that your general liability insurance rates are one of the most competitive in the market
Pros:
- Easy online application process
- Comprehensive general liability insurance coverage at a very competitive rate
- An excellent digital experience from getting quotes, buying policies, and managing the policies digitally
Cons:
- A newer insurance carrier without a long history record yet
- Online quotes are usually available for general liability insurance only
Allstate: Best option if you already have personal insurance with Allstate
Allstate is one of the largest insurance companies in the United States, and they offer a variety of insurance options for small businesses, including medical offices. Allstate offers all coverages that a medical would need such as general liability insurance, workers comp insurance, cyber liability, and commercial property insurance.
Allstate is a market leader in the personal insurance industry. There is a good chance that you may already have auto or home insurance with Allstate. If that is the case, you may want to inquire them about medical office insurance to bundle with your personal policies to save money.
Pros:
- Strong financial stability ratings
- Wide range of coverage options
- Personalized service from a dedicated agent
- Save money when you bundle medical office insurance with your personal policies
- Good customer satisfaction ratings
Cons:
- Higher prices than some online insurance platforms
- Limited online presence and application process
The Hartford: Best for comprehensive coverage for medical offices
The Hartford is a well-known insurance company that offers a variety of insurance options for small businesses. They have had more than 200 years of experience and insuring more than 1 million small business customers. Medical offic is one of their focused industries.
The Hartford is known for its comprehensive coverage and highest ethical standards.
Pros:
- Strong financial stability ratings
- Personalized service from a dedicated agent
- Comprehensive and customizable coverage for medical offices
Cons:
- Limited online presence and application process
- Rates can be higher than other options
Smart Financial: Best brokerage firm if you prefer working with experienced agents
Smart Financial is an insurance brokerage firm that specializes in providing insurance for small businesses, including medical offices. Unlike many other brokerage firms who have been focused on building a great digital experience, Smart Financial believes that small businesses should work with experienced agents to buy the coverage that they need. Experienced agents can help small business owners choose the right coverage and compare several quotes to find the cheapest one.
Smart Financial works with 100+ experienced agents who have had hundreds of years of experience helping small businesses buy insurance coverage. They will match you with the right agent who has the most experience in your industry and your business type.
Pros:
- Personalized service from a dedicated agent
- Hundreds of experienced agents who are very experienced in serving small businesses in all industries and niches
- Access to several insurance companies to get several quotes
Cons:
- Limited digital capabilities
- You have to work with an agent
Which types of medical offices need business insurance?
All types of medical offices need business insurance to protect themselves from financial losses caused by accidents, damage to the building or equipment, and other unexpected events. This includes:
- Hospitals: Hospitals need insurance to cover the costs of treating patients, as well as the costs of running the facility.
- Clinics: Clinics need insurance to cover the costs of treating patients, as well as the costs of running the facility.
- Medical Groups: Medical groups need insurance to cover the costs of treating patients, as well as the costs of running the facility.
- Dental Offices: Dental offices need insurance to cover the costs of treating patients, as well as the costs of running the facility. Learn more at the best business insurance companies for dental offices
- Chiropractic offices: Chiropractic offices need insurance to cover the costs of treating patients, as well as the costs of running the facility. Learn more at the best chiropractic malpractice insurance companies
- Mental Health Practices: Mental health practices need insurance to cover the costs of treating patients, as well as the costs of running the facility.
- Physical therapy practices: Physical therapy practices need insurance to cover the costs of treating patients, as well as the costs of running the facility. Learn more at the best malpractice insurance for physical therapists
- Rehabilitation centers: Rehabilitation centers need insurance to cover the costs of treating patients, as well as the costs of running the facility.
- Nursing homes: Nursing homes need insurance to cover the costs of treating patients, as well as the costs of running the facility.
- Home health care services: Home health care services need insurance to cover the costs of treating patients, as well as the costs of running the facility.
Overall, any type of medical office that treats patients or provides healthcare services needs business insurance to protect itself from financial losses.
Why do medical offices need business insurance?
Medical offices are exposed to a variety of risks, including liabilities related to patient care, property damage, and professional errors. Business insurance can protect a medical office from these risks by providing financial protection in the event of a loss.
Medical offices’ operations are actually exposed to several types of risks and that’s the reason why they will need several coverages that we are discussing below.
What business insurance coverage medical offices need to have
Medical offices may need to have several coverages to properly protect themselves from the risks they are exposed to in their operations. Below are some important ones that they should have:
General liability insurance
General liability insurance provides protection for a medical office against claims of third-party bodily injury and property damage. This coverage is essential for any business, including medical offices.
Here are a few examples of accidents that are covered by a medical office general liability policy:
- Slip and fall accident: A patient slips and falls in the waiting room, resulting in injuries. A general liability policy would typically cover the cost of medical expenses for the patient as well as any legal fees if the patient chooses to sue the medical office.
- Equipment malfunction: A piece of medical equipment malfunctions and causes injury to a patient. A general liability policy would typically cover the cost of medical expenses for the patient as well as any legal fees if the patient chooses to sue the medical office.
Medical malpractice insurance
Medical malpractice insurance, also known as professional liability insurance for healthcare workers, policies are designed to protect the medical office against claims of negligence or malpractice in the provision of professional services. Unlike general liability policies, these policies specifically cover incidents related to the professional judgment or skill of the medical staff, not accidents.
Here are a few examples of accidents that are covered by a medical malpractice insurance policy:
- Medication error: A medical office staff member gives a patient the wrong medication resulting in an adverse reaction. A general liability policy would typically cover the cost of medical expenses for the patient as well as any legal fees if the patient chooses to sue the medical office.
- Misdiagnosis: A medical office staff member misdiagnoses a patient, resulting in delayed or improper treatment. A professional liability policy would typically cover the costs of any legal fees and settlements if the patient chooses to sue the medical office for malpractice.
- Surgical error: A medical office staff member commits an error during a surgical procedure, resulting in injury to the patient. A professional liability policy would typically cover the costs of any legal fees and settlements if the patient chooses to sue the medical office for malpractice.
Property insurance
Property insurance provides protection for a medical office against damages or losses to their physical property, including the building and equipment. This coverage is essential for protecting the medical office’s investments in their physical assets.
Here are a few examples of accidents at medical offices that are covered by a property insurance policy:
- A fire breaks out in the medical office, causing damage to the building and equipment. This type of accident would also be covered by commercial property insurance, as it would be considered a property damage claim.
- A medical office’s roof leaks, causing water damage to the building and equipment. This type of accident would be covered by commercial property insurance’s property damage coverage, which covers damage to the building and equipment caused by unexpected events.
Cyber insurance
Medical offices need cyber insurance because they handle sensitive patient information, such as personal health information (PHI) and protected health information (PHI), which is protected under state and federal laws. A data breach or cyber attack on a medical office could result in the loss or theft of this sensitive information, which could lead to significant financial losses for the office and damage to its reputation. Additionally, a data breach could result in legal liability for the office if it is found to have failed to properly protect patient data. Cyber insurance can help cover the costs associated with a data breach, including legal fees, fines, and the cost of notification and credit monitoring for affected patients.
Here are a few examples of accidents at medical offices that are covered by cyber liability policy:
- A medical office’s computer system is hacked, causing the loss of sensitive patient data. This type of accident would be covered under cyber liability insurance which is typically included under commercial property insurance policy.
- A hacker gains access to the doctor’s office’s electronic medical records, stealing sensitive patient information. This type of accident would be covered by cyber liability insurance, which can help cover the costs of restoring lost data, notifying affected patients, and other expenses related to a cyber incident.
- A doctor’s office employee accidentally sends an email with sensitive patient information to the wrong recipient. This type of accident would also be covered by cyber liability insurance, as it would be considered a data breach and would fall under the cyber policy
In some cases, cyber liability policy is included under a commercial property insurance policy which is why it’s also known as cyber insurance rider.
Workers’ compensation insurance
Workers’ compensation insurance provides protection for a medical office’s employees in the event of job-related injuries or illnesses. This coverage is required by law in most states and is essential for protecting a medical office from the financial burden of employee injuries.
Here are a few examples of accidents at medical offices that are covered by a workers comp insurance policy:
- A doctor’s office employee slips and falls while on the job, causing injury. This type of accident would be covered by workers’ compensation, which provides benefits to employees who are injured on the job.
- A doctor’s office employee develops carpal tunnel syndrome from performing repetitive tasks such as typing. This type of injury would also be covered by workers’ compensation, as it is considered an occupational injury.
- A medical assistant is accidentally stuck with a needle while assisting a doctor with a procedure, and contracts a blood-borne illness. This type of accident would be covered by workers’ compensation, as it is considered a work-related injury.
How much does business insurance cost for medical offices?
The cost of business insurance for medical offices can vary depending on a number of factors that we discuss below.
On average, the cost of business insurance for a medical office can range anywhere from $420 to $5,400 a year. A small medical office with one doctor, one physician assistant, and one receptionist would pay around $3,600 per year.
However, it’s important to note that this is just a rough estimate, and your actual costs will depend on the factors listed below. To get a more accurate quote, it’s best to speak with an insurance agent who specializes in medical office insurance.
What affects the medical office business insurance costs?
There are several factors that can affect the cost of business insurance for medical offices, including:
The size and type of your medical office
The size and type of your medical office can have a significant impact on your business insurance costs. Larger medical offices, such as hospitals, typically have higher insurance costs than smaller ones, such as solo practitioners. This is because larger medical offices have more staff and patients, and therefore, a higher risk of accidents or incidents. Additionally, the type of medical practice can also affect the insurance costs, for example, a surgical practice will have higher insurance costs than a general practice.
The location of your medical office
The location of your medical office can also affect your business insurance costs. Insurance costs may vary depending on the area in which your medical office is located. For example, a medical office in a high-crime area may have higher insurance costs than one in a low-crime area. Additionally, if your medical office is located in a region that is prone to natural disasters, such as floods or hurricanes, your insurance costs may be higher.
The amount of coverage you need
The amount of coverage you need can have a significant impact on your business insurance costs. The more coverage you need, the higher your insurance costs will be. For example, if you need additional coverage for specialized equipment or professional liability, your costs will be higher than if you only need coverage for general liability. Additionally, the limits of the coverage will also affect the costs, for example, the higher the limits, the higher the costs.
Your claims history
Your claims history can also affect your business insurance costs. Insurance companies will take into account your claims history when determining your insurance costs. If you have a history of filing frequent or large claims, your insurance costs may be higher. This is because insurance companies see businesses with a history of claims as a higher risk and therefore, charge more for coverage.
Your credit score
Lastly, your credit score can also affect your business insurance costs. Insurance companies may take your credit score into account when determining your insurance costs. If you have a good credit score, you may be able to get a lower rate. This is because insurance companies see businesses with a good credit score as less of a risk and therefore, charge less for coverage.
It’s worth noting that these are general factors that affect insurance costs, and the specific cost will depend on the insurance company and the coverage you choose. It’s always best to shop around and compare different policies and prices to find the best coverage for your medical office.
What medical office owners can do to reduce their business insurance costs
There are several things medical office owners can do to reduce the cost of their business insurance, including:
Increase your deductibles
Increasing your deductibles is one way to lower your insurance costs. A deductible is the amount you pay out of pocket before your insurance coverage kicks in. By increasing your deductibles, you’re taking on more risk yourself, which can result in lower insurance costs. However, it’s important to note that you’ll be responsible for paying a higher amount out of pocket in the event of a claim, so make sure you can afford the increased deductible before making the change.
Bundling insurance policies
Bundling your business insurance policies, such as general liability and property insurance, can also result in a lower overall cost. By bundling your policies with the same insurance company, you may be eligible for a discount. This is because insurance companies view bundled policies as less risky, and therefore, charge less for coverage.
Review your coverage regularly
Another way to reduce your business insurance costs is to review your coverage regularly. This will help you identify any areas where you may be overinsured, allowing you to adjust your coverage and lower your costs. For example, if you’ve upgraded your security system or made other changes that reduce your risk, you may be able to lower your coverage limits and save money on your insurance costs.
Improve your safety and security measures
Implementing safety and security measures, such as CCTV cameras or alarm systems, can help lower your insurance costs. By taking steps to reduce the risk of accidents or incidents in your medical office, you can demonstrate to insurance companies that your business is less risky and therefore, qualify for lower insurance costs. Additionally, some insurance companies may also offer discounts for businesses that have certain safety and security features in place.
It’s worth noting that these are general actions that can help reduce insurance costs, and the specific cost will depend on the insurance company and the coverage you choose. Additionally, It’s always best to speak with an insurance agent who specializes in medical office insurance, and who will take the time to understand your specific needs, which can help you find the best coverage at the best price.
Where medical offices can get business insurance quotes:
Medical offices can get business insurance quotes from a variety of sources, including insurance carriers, brokerage firms, online or through an agent/broker. The main providers of medical office insurance are insurance companies or insurance brokerage firms. Below are some pros and cons of getting medical office insurance from these two main groups of providers:
Pros and cons of getting business insurance quotes from carriers:
You can choose to contact the carriers directly to get the coverage. We recommend NEXT, the Hartford, AllState, and Nationwide. Working directly with one of these carriers has its own advantages and drawbacks that you should consider:
Pros:
- Direct access to the carrier’s products and pricing
- You can choose the carrier that you prefer based on their reputation and financial strength
- Personalized service from a dedicated agent
Cons:
- Limited access to multiple carriers and products
- Some carriers may not offer all coverages that you need
- Prices are usually higher compared with getting quotes from brokerage firms
Pros and cons of getting business insurance from a brokerage firm:
If you want to get and compare several quotes to find the cheapest one for your practice, we strongly recommend you work with a brokerage firm specializing medical office insurance. Medical offices need several coverages to fully protect them from potential risks, working with a brokerage firm also makes it easier for them to get all coverages that they need in one place. We recommend the following brokerage firms: Simply Business, Smart Financial, and CoverWallet.
Pros:
- Access to multiple carriers and products
- Personalized service from a dedicated agent
- Easy to compare several quotes to find the cheapest one for your practice
- Access to all coverages that your practice may need in one place
Cons:
- If you prefer a particular carrier that they don’t work with, you may need to get additional quotes directly from this carrier
- It may take a bit longer to gather quotes from a brokerage firm vs. a carrier since they have to provide you with several quotes at once
What medical offices should pay attention to when comparing several quotes
When comparing several quotes, medical offices should pay attention to the coverage limits, deductibles, and exclusions offered by each policy. They should also consider the financial stability ratings of the carrier and the reputation of the carrier or broker providing the quote. Additionally, they should consider the cost of the policy and if it fits within their budget.
In conclusion, medical offices need business insurance to protect themselves from potential liabilities and financial losses. The six best medical office insurance companies mentioned in this article are Simply Business, CoverWallet, NEXT, Smart Financial, the Hartford, Allstate, and Nationwide, each with their own pros and cons. Medical offices should consider their specific needs and budget when selecting the right insurance policy and carrier. It is important to compare quotes from multiple sources, including insurance carriers, brokerage firms, and online insurance platforms, in order to make an informed decision.
