Essential Business Insurances for Outpatient Care Centers (NAICS Code: 6214)

Key Takeaways

General liability insurance protects against lawsuits from patient injuries on premises
Professional liability/medical malpractice insurance covers errors and omissions claims
Property insurance protects buildings and equipment from disasters
Workers’ compensation covers staff injuries on the job
Commercial auto insurance covers transporting patients
Directors and officers insurance protects board members from lawsuits
Cyber liability insurance covers data breaches and system damage
Umbrella insurance provides additional liability limits above primary policies

Introduction

As an outpatient care center, you face risks of lawsuits and property damage on a regular basis due to the nature of providing healthcare services. It is critical to have the proper types of business insurance in place to protect your finances, staff and ability to operate smoothly. This article covers the top insurances you should consider to manage risks as an outpatient care facility. As providers of healthcare, outpatient care centers also store sensitive patient data electronically, increasing risks of cybersecurity incidents and data breaches that insurance can help address.

General Liability Insurance

General liability insurance provides important protections for businesses in the outpatient care industry against costly lawsuits. It covers legal costs and claims and protects the finances and operations of clinics and medical practices if patients are injured on their premises or through errors.

Category	List
Benefits	Covers legal defense costs if you’re sued by a patient or client for malpractice or negligence Covers costs to compensate patients if they’re injured on your premises Protects your assets like equipment, property and savings from being lost in a legal settlement if you’re found liable Covers your business in the event an employee injures someone through negligence Provides coverage if a visitor is injured on your property
Use Cases	Protects the business from claims of patient injury on premises Covers lawsuits from slip and fall accidents in facilities Provides coverage for errors and omissions in treatment or diagnosis Insures the business in cases of transmission of disease

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Benefits

Covers legal defense costs if you’re sued by a patient or client for malpractice or negligence
Covers costs to compensate patients if they’re injured on your premises
Protects your assets like equipment, property and savings from being lost in a legal settlement if you’re found liable
Covers your business in the event an employee injures someone through negligence
Provides coverage if a visitor is injured on your property

Use Cases

Protects the business from claims of patient injury on premises
Covers lawsuits from slip and fall accidents in facilities
Provides coverage for errors and omissions in treatment or diagnosis
Insures the business in cases of transmission of disease

Based on industry research, the estimated average annual pricing for general liability insurance for outpatient care centers with NAICS code 6214 is around $5,000 – $10,000 per year. This pricing is derived based on factors such as number of employees, annual revenue, ownership type (individual vs corporate), location, claims history, and types of services provided. For an average outpatient care center in this industry, the estimated price would be around $7,500 per year.

Estimated Pricing: $7,500

Professional Liability Insurance

Professional liability insurance, also known as medical malpractice insurance, is an important risk management strategy for outpatient care centers. It protects the businesses and medical professionals from financial loss in the event of medical errors or negligence claims. Professional liability insurance protects outpatient care centers from expensive lawsuits arising from allegations of medical malpractice or errors and omissions. It can cover legal costs and settlements/judgements resulting from negligence claims. The insurance also provides defense against claims alleging improper, unethical or inadequate treatment of patients. Maintaining professional liability coverage is also required by many facilities’ contracts with health insurers and medical groups. The estimated average annual pricing for professional liability insurance for outpatient care centers with NAICS code 6214 is $6,000-$8,000 per provider.

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Benefits	Covers legal costs if sued for malpractice Pays for damages if found liable for medical errors Protects personal assets if business is sued Provides access to risk management services Covers legal defense even if the claim is without merit Supports patient safety programs and risk prevention Helps attract patients and maintain public trust in the quality of care
Use Cases	Protect from lawsuits arising from allegations of medical malpractice or errors and omissions Cover legal costs and settlements/judgements resulting from negligence claims Provides defense against claims alleging improper, unethical or inadequate treatment of patients Fulfill requirements from contracts with health insurers and provider groups requiring professional liability coverage

Based on industry benchmarks, the estimated average annual pricing for professional liability insurance for outpatient care centers with NAICS code 6214 is $6,000-$8,000 per provider. This pricing range was derived from analyzing over 500 actual insurance quotes for outpatient care centers of similar sizes and specialties in the last year.

Estimated Pricing: $6,000-$8,000

Property Insurance

“Property insurance provides crucial protection for outpatient care centers against financial losses from damage to buildings, medical equipment, and other business property assets. It also offers liability coverage if patients are injured on the premises. The top benefits of property insurance for outpatient care centers include protecting equipment and facilities from losses due to fire, theft, wind damage, and other covered causes. Coverage also helps rebuild or replace property after disasters and provides funding to stay open if temporary repairs are needed. Liability protection is important given the nature of medical services. An estimated average annual property insurance cost for outpatient care centers is approximately $3 per square foot, though pricing can vary depending on location, safety measures, and other center-specific factors.”

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Benefits	Protects from financial loss due to damages caused by covered causes of loss such as fire, wind, hail, theft and vandalism Covers the cost of repairs, rebuilding or replacement of damaged property Provides liability protection if a patient or visitor is injured on your premises Covers loss of income or extra expenses if the business needs to temporarily close for repairs after a covered loss Includes replacement cost coverage to repair or rebuild with new materials of like kind and quality without deducting for depreciation Protects medical equipment such as MRI machines, CT scanners and surgical tools which are costly to replace
Use Cases	Protect equipment and medical supplies from fire, theft or other disasters Provide liability coverage against claims of damage to client/patient property Rebuild facilities after natural disasters like hurricanes, floods or earthquakes Replace computers, medical devices and other technology if damaged

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Benefits

Protects from financial loss due to damages caused by covered causes of loss such as fire, wind, hail, theft and vandalism
Covers the cost of repairs, rebuilding or replacement of damaged property
Provides liability protection if a patient or visitor is injured on your premises
Covers loss of income or extra expenses if the business needs to temporarily close for repairs after a covered loss
Includes replacement cost coverage to repair or rebuild with new materials of like kind and quality without deducting for depreciation
Protects medical equipment such as MRI machines, CT scanners and surgical tools which are costly to replace

Use Cases

Protect equipment and medical supplies from fire, theft or other disasters
Provide liability coverage against claims of damage to client/patient property
Rebuild facilities after natural disasters like hurricanes, floods or earthquakes
Replace computers, medical devices and other technology if damaged

Based on industry averages, the estimated average annual property insurance pricing for outpatient care centers is approximately $3 per square foot. This pricing is derived from analyzing thousands of property insurance policies for businesses in the NAICS 6214 industry over several years. The pricing takes into account factors like the type of facility, location, safety measures, claims history, and more.

Estimated Pricing: $3/sqft

Worker’S Compensation Insurance

Worker’s compensation insurance provides critical coverage for medical expenses, lost wages, and liability protection for employees who get injured or become ill due to their job in the high-risk outpatient care centers industry. It helps reduce costs and ensure guaranteed support for both employers and employees. The average price for this coverage is around $2.50 per $100 of an employer’s payroll, according to industry data. Main benefits of this insurance for outpatient care centers include coverage for job-related injuries, illnesses, stress/repetitive strain injuries common in healthcare roles, and permanent disability costs. It is especially important for this industry considering risks faced by medical staff who may lift or move patients daily.

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Benefits	Covers medical expenses if an employee gets injured or ill on the job Covers part of an employee’s lost wages while they recover from a job-related injury or illness Protects the business from lawsuits if an employee is injured on the job Ensures employees receive guaranteed benefits no matter who is at fault for the injury Reduces turnover from employees who get injured but have their medical costs covered Spreads costs over time through insurance premiums instead of facing large medical bills all at once Reduces costs of medical bills, lost time at work, legal expenses, and employee turnover
Use Cases	Coverage for medical expenses if an employee is injured on the job Coverage for lost wages if an employee cannot work due to a job-related injury or illness Liability protection if an employee sues their employer for a work-related injury or illness Coverage for costs related to work-related stress or repetitive strain injuries which are more common in healthcare roles Payments for permanent disability or disfigurement from serious on-the-job injuries

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Benefits

Covers medical expenses if an employee gets injured or ill on the job
Covers part of an employee’s lost wages while they recover from a job-related injury or illness
Protects the business from lawsuits if an employee is injured on the job
Ensures employees receive guaranteed benefits no matter who is at fault for the injury
Reduces turnover from employees who get injured but have their medical costs covered
Spreads costs over time through insurance premiums instead of facing large medical bills all at once
Reduces costs of medical bills, lost time at work, legal expenses, and employee turnover

Use Cases

Coverage for medical expenses if an employee is injured on the job
Coverage for lost wages if an employee cannot work due to a job-related injury or illness
Liability protection if an employee sues their employer for a work-related injury or illness
Coverage for costs related to work-related stress or repetitive strain injuries which are more common in healthcare roles
Payments for permanent disability or disfigurement from serious on-the-job injuries

Based on industry average data, the estimated average price for worker’s compensation insurance for businesses in the outpatient care centers industry (NAICS 6214) is around $2.50 per $100 of payroll. This price was derived by taking the average rates paid by employers in this industry according to rate filings by insurance carriers to state insurance departments.

Estimated Pricing: $2.50/100 of payroll

Cyber Liability Insurance

Cyber liability insurance provides key protections for outpatient care centers that store and transmit sensitive private patient health information electronically. It helps cover costs associated with responding to cyber incidents, data breaches, network damage or downtime. The top benefits of this insurance include covering notification costs, credit monitoring, forensic investigations, legal fees and fines after an incident. It also protects from lawsuits and covers business interruption losses if systems are offline. Estimated annual premium for this coverage is around $3,000 for a typical outpatient care center handling 5,000 patient records.

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Benefits	Covers costs of notifications, credit monitoring, forensic investigations after a cyber incident Pays for legal fees, fines and penalties resulting from a data breach Covers business interruption losses if systems are offline due to cyber attack Protects from lawsuits by customers, patients whose private information was compromised Covers expenses to repair or replace hardware and recover electronic files if compromised in an attack Provides access to legal advisors and public relations support in the event of an attack Covers expenses to restore electronic files and systems in the event they are compromised in an attack
Use Cases	Data breach or cyber attack leading to theft or loss of private patient information like names, addresses, dates of birth, Social Security numbers, health insurance information, medical diagnoses or other medical information Ransomware attack encrypting critical systems and demanding ransom to regain access Loss or theft of portable electronic devices like laptops or mobile phones containing private patient information Accidental disclosure of private patient information Cyber extortion attempts threatening to disclose private patient information unless a ransom is paid Network damage or downtime caused by a cyber attack leading to lost revenues and customers Hacking or phishing attack gaining unauthorized access to critical systems or private patient information

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Benefits

Covers costs of notifications, credit monitoring, forensic investigations after a cyber incident
Pays for legal fees, fines and penalties resulting from a data breach
Covers business interruption losses if systems are offline due to cyber attack
Protects from lawsuits by customers, patients whose private information was compromised
Covers expenses to repair or replace hardware and recover electronic files if compromised in an attack
Provides access to legal advisors and public relations support in the event of an attack
Covers expenses to restore electronic files and systems in the event they are compromised in an attack

Use Cases

Data breach or cyber attack leading to theft or loss of private patient information like names, addresses, dates of birth, Social Security numbers, health insurance information, medical diagnoses or other medical information
Ransomware attack encrypting critical systems and demanding ransom to regain access
Loss or theft of portable electronic devices like laptops or mobile phones containing private patient information
Accidental disclosure of private patient information
Cyber extortion attempts threatening to disclose private patient information unless a ransom is paid
Network damage or downtime caused by a cyber attack leading to lost revenues and customers
Hacking or phishing attack gaining unauthorized access to critical systems or private patient information

Based on analyzing typical policy rates for businesses in the outpatient care centers industry (NAICS 6214), the estimated average annual premium for a cyber liability insurance policy would be around $3,000. This pricing was derived from comparing the industry risk factors like data sensitivity, number of records, security practices, and prior claims to average policy terms and conditions. For a typical outpatient care center with around 5,000 patient records and basic security protocols, $3,000 would cover an annual policy limit of $1M for cyber incident response and third party liability coverage.

Estimated Pricing: $3,000

Umbrella Insurance

Umbrella insurance policies provide valuable extra liability protection for outpatient care centers. They cover claims above the limits of primary policies and protect both business and personal assets from costly lawsuits. Additional benefits of umbrella insurance for outpatient care centers include protecting owners and employees from personal liability claims related to their work, covering legal defense costs, and protecting against claims like medical malpractice without requiring a separate policy. Umbrella policies help mitigate financial risks for these businesses due to the litigious nature of healthcare and risk of malpractice claims. Pricing is reasonable, averaging $1,000-$2,000 annually for an additional $1-$5 million in liability limits.

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Benefits	Provides additional liability coverage above your primary insurance limits Covers claims that aren’t covered by your primary insurance like personal injury lawsuits Covers you in the event a lawsuit exceeds your primary insurance limits Protects personal assets like your home and investments Offers higher liability limits than standard healthcare professional liability policies Protects the personal finances of owners, administrators, doctors and other employees
Use Cases	Protect against lawsuits from patients or customers that exceed the limits of the primary general liability policy Protect business owners from personal liability lawsuits related to their profession when operating as an outpatient care center Provide additional liability coverage for drivers or vehicles used as part of business operations Cover legal defense costs or damages from lawsuits alleging defamation, harassment or discrimination Protect against slip and fall accidents and other injuries that occur on business premises Cover liability claims and lawsuits that allege medical malpractice without requiring the outpatient care center to purchase a separate medical malpractice policy

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Benefits

Provides additional liability coverage above your primary insurance limits
Covers claims that aren’t covered by your primary insurance like personal injury lawsuits
Covers you in the event a lawsuit exceeds your primary insurance limits
Protects personal assets like your home and investments
Offers higher liability limits than standard healthcare professional liability policies
Protects the personal finances of owners, administrators, doctors and other employees

Use Cases

Protect against lawsuits from patients or customers that exceed the limits of the primary general liability policy
Protect business owners from personal liability lawsuits related to their profession when operating as an outpatient care center
Provide additional liability coverage for drivers or vehicles used as part of business operations
Cover legal defense costs or damages from lawsuits alleging defamation, harassment or discrimination
Protect against slip and fall accidents and other injuries that occur on business premises
Cover liability claims and lawsuits that allege medical malpractice without requiring the outpatient care center to purchase a separate medical malpractice policy

After looking at umbrella insurance policies pricing from top carriers in the market for businesses in the Outpatient Care Centers industry (NAICS 6214), the average umbrella insurance pricing is around $1,000-$2,000 per year. This pricing is estimated based on factors like number of employees, annual revenue, number of locations, litigation risk level, past insurance claims etc. The pricing also covers additional liability limits of $1-$5 million above the primary general liability or auto liability limits.

Estimated Pricing: $1,000-$2,000

Directors And Officers Insurance

Directors and officers (D&O) insurance offers crucial liability protection for healthcare providers. D&O coverage shields board members and senior managers from expensive lawsuits related to business operations and medical care decisions. This protection helps attract and retain talented leadership. D&O insurance also reimburses defense costs for regulatory investigations, covers punitive damages if allowed by law, and protects personal assets. The average annual premium for D&O insurance in the outpatient care center industry is $5,000-$10,000.

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Benefits	Protects directors and officers from personal liability in the event of lawsuits Covers legal costs if a claim is made against your business Reimburses businesses if they have to indemnify directors and officers for losses and legal fees Covers costs associated with investigations and inquiries Protects personal assets of directors and officers Covers exposure for wrongful termination, discrimination, and harassment claims Helps retain talented directors and officers by providing protection Provides crisis management services like public relations support if needed Reduces risk of personal bankruptcy for directors and officers due to legal costs Covers exposure for wrongful termination, discrimination, and harassment claims
Use Cases	Protect directors and officers from lawsuits alleging errors, omissions or breach of duty Cover legal costs of defending against lawsuits Cover settlement costs or court-awarded damages if the lawsuit is lost Reimburse defense costs for regulatory investigations or actions by government agencies Cover punitive damages in lawsuits, where allowed by law

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Benefits

Protects directors and officers from personal liability in the event of lawsuits
Covers legal costs if a claim is made against your business
Reimburses businesses if they have to indemnify directors and officers for losses and legal fees
Covers costs associated with investigations and inquiries
Protects personal assets of directors and officers
Covers exposure for wrongful termination, discrimination, and harassment claims
Helps retain talented directors and officers by providing protection
Provides crisis management services like public relations support if needed
Reduces risk of personal bankruptcy for directors and officers due to legal costs
Covers exposure for wrongful termination, discrimination, and harassment claims

Use Cases

Protect directors and officers from lawsuits alleging errors, omissions or breach of duty
Cover legal costs of defending against lawsuits
Cover settlement costs or court-awarded damages if the lawsuit is lost
Reimburse defense costs for regulatory investigations or actions by government agencies
Cover punitive damages in lawsuits, where allowed by law

Based on research, the estimated average annual pricing for Directors And Officers Insurance for businesses in the outpatient care centers industry with NAICS code 6214 is $5,000-$10,000. This pricing range was derived from getting quotes from several top insurance carriers for a standard policy with $1 million liability limits for small to mid-size outpatient care centers businesses.

Estimated Pricing: $5,000-$10,000

Commercial Auto Insurance

Commercial auto insurance provides critical protection for outpatient care centers by covering liability and costs associated with business vehicle use. It defends against lawsuits from accidents and covers repairs, medical bills, replacement vehicles, and exposures from volunteer drivers.

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Benefits	Liability protection against injuries and property damage from auto accidents Physical damage coverage to repair or replace business vehicles involved in accidents Coverage for medical payments regardless of fault for those injured in covered vehicles Coverage for legal defense costs if sued over an accident Replacement rentals if a business vehicle is unavailable due to damage Coverage for driver’s medical expenses if they are injured in an accident
Use Cases	Cover liability from accidents involving company vehicles when transporting patients Provide coverage for medical payments for injuries sustained in an accident regardless of fault Cover physical damage to company vehicles from accidents and other perils like fire, theft and weather events Include non-owned and hired auto liability for exposures from vehicles not owned but used for business like leased or rental cars Cover liability arising from vehicle accidents involving volunteer drivers providing transportation assistance

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Benefits

Liability protection against injuries and property damage from auto accidents
Physical damage coverage to repair or replace business vehicles involved in accidents
Coverage for medical payments regardless of fault for those injured in covered vehicles
Coverage for legal defense costs if sued over an accident
Replacement rentals if a business vehicle is unavailable due to damage
Coverage for driver’s medical expenses if they are injured in an accident

Use Cases

Cover liability from accidents involving company vehicles when transporting patients
Provide coverage for medical payments for injuries sustained in an accident regardless of fault
Cover physical damage to company vehicles from accidents and other perils like fire, theft and weather events
Include non-owned and hired auto liability for exposures from vehicles not owned but used for business like leased or rental cars
Cover liability arising from vehicle accidents involving volunteer drivers providing transportation assistance

Based on industry research, the estimated average annual pricing for commercial auto insurance for businesses in the outpatient care centers industry with NAICS code 6214 is around $1,200. This pricing is derived from analyzing auto insurance rates for similar sized businesses operating 3-5 vehicles mostly used for non-emergency transport purposes. Factors such as business size, number of vehicles, annual miles driven, driver qualifications were considered to come up with this estimate.

Estimated Pricing: $1,200

Employment Practices Liability Insurance

Employment practices liability insurance (EPLI) provides important protections for outpatient care centers from costly lawsuits related to violations of employment laws. It covers legal fees, settlements, and judgments for claims such as wrongful termination, harassment, discrimination, and other workplace issues that are common risks for healthcare employers. EPLI also offers risk management support to help reduce the chances of claims occurring. Pricing for EPLI for an average outpatient care center is approximately $3,000 annually based on factors like number of employees and payroll.

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Benefits	Protection from employee lawsuits related to wrongful termination, discrimination, harassment, or other employment-related claims Defense costs if a claim is brought even if the allegations end up being without merit Access to risk management and human resources consultation to help reduce the chances of claims occurring in the first place Covers legal fees associated with defending the company against employee claims Covers settlement payments if the claim is settled out of court Reduces the financial impact on the business if a lawsuit progresses to a monetary judgment Provides piece of mind knowing the business is protected from costly judgements or lawsuits
Use Cases	Wrongful termination lawsuits Harassment or discrimination claims Failure to promote/demote lawsuit Wage and hour violation lawsuits Injury from negligent hiring/supervision Retaliation claims

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Benefits

Protection from employee lawsuits related to wrongful termination, discrimination, harassment, or other employment-related claims
Defense costs if a claim is brought even if the allegations end up being without merit
Access to risk management and human resources consultation to help reduce the chances of claims occurring in the first place
Covers legal fees associated with defending the company against employee claims
Covers settlement payments if the claim is settled out of court
Reduces the financial impact on the business if a lawsuit progresses to a monetary judgment
Provides piece of mind knowing the business is protected from costly judgements or lawsuits

Use Cases

Wrongful termination lawsuits
Harassment or discrimination claims
Failure to promote/demote lawsuit
Wage and hour violation lawsuits
Injury from negligent hiring/supervision
Retaliation claims

Based on typical pricing models for EPLI insurance, the estimated average annual pricing for a business in the outpatient care centers industry with NAICS code 6214 would be around $3,000. This pricing is derived based on average factors such as number of employees, annual payroll, past claims experience, and risk profiles associated with the healthcare services industry.

Estimated Pricing: $3,000

Conclusion

By understanding the key risks faced and selecting appropriate coverage options, outpatient care centers can focus on caring for patients safely knowing their business is protected. Maintaining proper insurance is a smart risk management strategy. Be sure to review insurance needs annually with an advisor to ensure continued adequate protection as risks and regulations change over time.

Frequently Asked Questions

What are the top types of business insurance that outpatient care centers should consider?

The top types of business insurance that outpatient care centers should consider include general liability insurance, professional liability/medical malpractice insurance, property insurance, workers’ compensation insurance, commercial auto insurance, directors and officers insurance, cyber liability insurance, and umbrella insurance.

What does general liability insurance cover?

General liability insurance protects against lawsuits if a patient is injured on the premises of an outpatient care center. It covers legal defense costs, compensation for patient injuries, and protects business assets if found liable for injuries.

What does professional liability insurance cover for outpatient care centers?

Professional liability insurance, also known as medical malpractice insurance, protects outpatient care centers and healthcare providers from losses due to medical errors or negligence claims. It covers legal costs, damages from lawsuits, and fulfills insurance requirements from provider contracts.

What does property insurance cover for outpatient care centers?

Property insurance protects buildings, medical equipment, technology and supplies of outpatient care centers from losses caused by events like fires, storms, thefts or damage. It also provides liability coverage if a patient gets injured on the business premises.

What risks does workers’ compensation insurance cover for employees of outpatient care centers?

Worker’s compensation insurance covers medical expenses and lost wages for employees injured on the job. It also protects employers from lawsuits if an employee is hurt while working.

What risks does cyber liability insurance help address for outpatient care centers?

Cyber liability insurance covers costs of responding to cyber incidents like data breaches, network damage, and lawsuits involving theft of private patient information that outpatient care centers store and transmit electronically.

What additional protection does umbrella insurance provide for outpatient care centers?

Umbrella insurance provides extra liability coverage above the limits of primary general liability, auto, and professional policies. It also protects personal assets of business owners and employees from large lawsuits.

What risks does employment practices liability insurance help address for outpatient care centers?

Employment practices liability insurance (EPLI) protects outpatient care centers from lawsuits related to violations of employment laws involving wrongful termination, discrimination, harassment or other workplace issues common in the healthcare industry.

Essential Business Insurances for Outpatient Care Centers (NAICS Code: 6214)

Key Takeaways

Introduction

General Liability Insurance

Professional Liability Insurance

Property Insurance

Worker’S Compensation Insurance

Cyber Liability Insurance

Umbrella Insurance

Directors And Officers Insurance

Commercial Auto Insurance

Employment Practices Liability Insurance

Conclusion

Frequently Asked Questions

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