Business insurance is intended to safeguard the financial assets of a business owner and is a necessary investment for a hospice organisation.
This article will discuss the primary insurance coverage for hospice, general liability insurance, as well as additional policies that are appropriate for this industry.
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Hospice 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:
Physical harm
Damage to property
Medical expenses
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.
Common Situations That A Hospice Company’s General Liability Insurance May Cover
Example 1: A family member falls while visiting a resident and slips on the ice in the parking lot. They broke their wrist and landed on their heads on the freezing pavement. The injuries caused during the fall would most certainly be covered by general liability insurance.
Example 2: A patient goes to the bathroom alone and stumbles over the wastebasket. Their fall causes several abrasions that must be treated, as well as other ailments. General liability insurance would most likely protect against litigation stemming from the occurrence.
Example 3: On social media, an employee casually asserts your hospice facility is the “best” in the region. They have no proof to back up their allegation, so another institution launches a lawsuit. The subsequent legal bills would most likely be covered by 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
In America, the typical hospice firm pays between $300 and $800 per year for $1 million in general liability coverage.
The cost of your coverage will be determined by a number of variables. Among them are your:
Location
Deductible
Employees’ number
Per-occurrence restriction
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 Hospice Organizations Require
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 hospice firms should have are as follows:
Insurance for Commercial Property
Hospice facilities need commercial property insurance to protect their structures and equipment. Supplies and merchandise held at a facility are also covered by property insurance.
When choosing commercial property coverage, don’t only look at the building’s worth. Make certain that you have enough coverage for the entire worth of the facility’s medical equipment, which is likely to be in the tens of thousands of dollars or more.
Most company owner’s plans include commercial property insurance (BOPs).
Insurance for Professional Liability
Businesses that offer medical treatment to patients may risk costly malpractice lawsuits if one of its staff makes a severe error in the care of a patient. Professional liability insurance shields you from error-related litigation such as malpractice cases.
Many individuals work at hospice institutions to give medical care to patients. Check to ensure that your facility’s policy includes all caregivers, including technicians, aides, nurses, and doctors.
Professional liability insurance is included in some package plans and may be purchased separately.
Insurance for Workers’ Compensation
Employers are often obliged by state law to offer workers’ compensation insurance to their employees. This insurance provides coverage for work-related injuries.
Insurance for Data Breach
While keeping electronic medical data is mandated by law, it exposes organisations to possible internet security concerns. Data breach insurance covers non-criminal data breaches as well as system invasions.
Data breach insurance is included in certain package plans and may be purchased separately.
Coverage Options for Hospice Organizations
In addition to the policies listed above, your hospice firm 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 Commercial Vehicles
If your hospice facility transports patients using a company-owned bus or van, the vehicle must be covered by commercial car insurance. All cars used on public highways are required by state law to be insured.
Commercial vehicle insurance is included in certain package packages and may be purchased separately.
Umbrella Insurance for Businesses
Malpractice lawsuits and other types of liability claims may result in high legal bills and settlements. Commercial umbrella insurance provides additional liability protection in the event of a costly litigation.
Commercial umbrella insurance is included in certain package plans and may be purchased separately.
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.