Company insurance is intended to safeguard the financial assets of a business owner and is a necessary investment for a midwifery practise.
This article will discuss the primary insurance coverage for midwifery firms, general liability insurance, as well as additional products that are appropriate for this industry.
Midwifery Businesses Need General Liability Insurance
Every firm, regardless of sector, has risks that should be insured. General liability insurance is the most frequent and comprehensive form of coverage that company owners purchase.
General liability insurance covers the following risks:
Damage to property
Legal defence and decision
Personal and commercial harm
While general liability insurance is not legally needed for companies, operating without it is exceedingly dangerous. If your company is sued, you might face costs in the hundreds of thousands of dollars (or more). The only way to avoid this sort of catastrophe from destroying your organisation is to have an adequate general liability insurance coverage in place to assist pay for these losses.
GENERAL LIABILITY INSURANCE MAY COVER COMMON SITUATIONS FOR A MIDWIFERY BUSINESS
Example 1: A new customer comes to your place of business to discuss your services and falls on some wet flooring, fractures her arm, and demands that you pay for her medical care. Her medical expenditures would be covered by general liability insurance.
Example 2: Another local healthcare practitioner sues your firm, saying you defamed her. You know you need to engage an attorney even if you disagree with the charge. Your legal defence and any needed settlement would be covered by general liability insurance.
Example 3: You trip over the family cat while visiting a client’s house, fall into an entertainment centre, and shatter a huge television. The client’s damaged property would be repaired or replaced under general liability insurance.
Of course, this is not an entire list of risks covered by a general liability insurance policy, and certain situations may result in a specific peril not being covered. To minimise coverage gaps, it’s always better to speak with your agent about the terms of your policy.
General Liability Insurance Cost
Midwifery firms in the United States typically pay between $300 and $800 each year for $1 million in general liability insurance.
The cost of your coverage will be determined by a number of variables. Among them are your:
The overall aggregate limit
You may be able to get general liability insurance at a lower cost if you buy it as part of a business owner’s policy (BOP) rather than as a separate policy. A business interruption policy (BOP) is a more complete option that covers numerous types of coverage, such as business interruption and property insurance.
Other Types of Coverage Required by Midwifery Businesses
While general liability insurance is the most crucial, there are various different types of coverage to be aware of. Other forms of insurance that all midwifery firms should have are as follows:
Insurance for Professional Liability
While you endeavour to offer advise that makes the process of having a baby safer and healthier for your customers, there is always the possibility that you made a mistake and their damage was caused by your advice. If a customer sues your company for carelessness, professional liability insurance will pay your legal bills as well as any compensation necessary.
Insurance for Commercial Vehicles
In the case of a collision, any vehicle you use mainly for your midwifery company needs commercial car insurance to safeguard the vehicle, driver, and others on the road. Choose a policy that not only covers accident-related vehicle repair expenses and medical care for anybody harmed, but also provides enough coverage for any company property you transport in your vehicle.
Coverage Options for Some Midwifery Businesses
In addition to the insurance listed above, your midwifery company may need other forms of coverage based on particular parts of your activities. Some of them may not apply to you, so be sure to ask your agent whether policies are appropriate for your company.
Insurance for Workers’ Compensation
Most states will require you to have workers’ compensation insurance for your part-time and full-time employees if you have any. This coverage covers your workers if they are hurt at work or get sick as a result of a workplace accident. It covers not only an employee’s medical expenditures and lost pay if they need time off to recuperate, but also any disability or death benefits resulting from a workplace accident.
Umbrella Insurance for Businesses
While most claims are covered by your general liability insurance policy, certain incidents or lawsuits may be so severe that they threaten to deplete the limits of your main coverage. Commercial umbrella insurance protects you from having to pay for legal expenses and awarded damages that exceed the limits of your main policy out of pocket.
Additional Security Measures for Your Company
Although investing in company insurance is simple (and necessary), it should not be your first line of defence. Yes, insurance will reimburse your company for cash losses incurred as a result of an occurrence, but it is much preferable to avoid losses altogether.
With this in mind, here are a few steps you can take to better secure your company:
Make use of legally binding contracts and other business agreements. (We provide free templates for several of the most often used legal forms.)
To safeguard your personal assets, form a limited liability company (LLC) or a corporation. (To discover how to incorporate an LLC or company in your state, see our step-by-step tutorials.)
Keep your company licences up to date.
Streamline the internal procedures of your company. This will eliminate unneeded variables from routine activities and establish a secure, consistent environment in which to do business.
If your company is an LLC, you should check into LLC insurance.