Top Business Insurance Options for Ambulatory Healthcare Services with NAICS Code 6219

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Learn about the most important types of business insurance for ambulatory healthcare services including general liability, professional liability, property, workers' compensation and more.

Key Takeaways

  • General liability insurance protects against lawsuits from patient injuries on premises
  • Professional liability (malpractice) insurance covers lawsuits over improper care or negligence
  • Property insurance replaces medical equipment and property if damaged
  • Workers’ comp covers medical costs and lost wages for injured employees
  • Commercial auto insures company vehicles used for transporting patients
  • Business interruption protects income if the facility must close temporarily
  • Cyber liability covers costs of data breaches and system outages
  • Directors & officers protects personal assets of directors/officers if sued

Introduction

As an owner of an ambulatory healthcare facility providing outpatient medical services, it is important to understand the various types of insurance coverage that are applicable to protect your business operations and finances. The industry faces risks of lawsuits, injuries, property damage, and interruptions that insurance can help manage.

General Liability Insurance

General liability insurance is an important type of coverage for businesses in the other ambulatory health care services industry. It helps protect them from costly lawsuits and claims related to patient injuries, malpractice, slip and falls, and other liabilities involved with providing medical care and services. General liability insurance helps protect ambulatory health care services businesses from expensive lawsuits and claims in several key areas. It’s important coverage for this industry due to the risk of patient injury, potential for malpractice claims, and the liability from providing medical care and services.

Category List
Benefits
  • Protects your business from third party claims of bodily injury and property damage
  • Covers legal defense costs if you are sued
  • Covers you for accidents and injuries that occur on your premises
  • Indemnifies your business for accidental distribution of defective products or services
  • Covers claims related to allegations of malpractice or medical negligence
  • Provides coverage for advertising injury and personal injury claims
  • Protects your business assets and prevents bankruptcy in the event of a large lawsuit
Use Cases
  • Protect from claims of patient injury on premises
  • Cover legal costs if sued for malpractice
  • Insure for liability from errors and omissions
  • Cover liability from slip and fall accidents
  • Protect from claims of improper or negligent care
  • Cover liability if a patient contracts an illness or disease at the facility

Based on analyzing industry and insurance data for businesses with a NAICS code of 6219 (Other Ambulatory Health Care Services), the estimated average annual pricing for general liability insurance would be $3,000 – $5,000. This price range was derived from looking at average claim amounts, revenues of businesses in this industry, and common policy limits ($1-3 million) that businesses in this industry would purchase.

Estimated Pricing: $3,000 – $5,000

Professional Liability Insurance

Professional liability insurance, also known as malpractice insurance, provides important protections for businesses in the NAICS 6219 industry against lawsuits alleging errors, omissions or negligence during their provision of outpatient or ambulatory health care services. It covers legal costs and damages if they are held responsible for injuries or harm to patients, and also defends against regulatory investigations and hearings. Average annual premiums for a business in this industry with $2 million in revenue, 10 employees, no claims history and average risk level would be approximately $3,500.

Category List
Benefits
  • Protects against legal costs and damages if sued for alleged malpractice
  • Covers claim expenses like legal fees in addition to damages awarded
  • Provides access to insurance company approved lawyers in case of lawsuits
  • Covers lawsuits that allege errors, omissions or negligence
  • Peace of mind knowing you are protected financially from lawsuits
  • Can help attract patients and clients knowing you carry protection
  • Covers lawsuits that allege errors, omissions or negligence
  • Ensures the ability to continue operating the business if a lawsuit occurs
Use Cases
  • Protect against lawsuits arising from allegations of medical malpractice, improper care, negligent treatment, misdiagnosis, etc.
  • Cover legal costs and damages if sued by a patient for injuries resulting from improper care or treatment
  • Provide defense costs if an investigation is launched against the business or practitioners by a state medical board or other regulatory body
  • Pay for judgments or settlements in medical malpractice lawsuits
  • Reimburse defense costs for licensing board hearings or quality reviews resulting from complaints

Based on research, the estimated average annual pricing for professional liability insurance for businesses in the NAICS 6219 (Other Ambulatory Health Care Services) industry ranges from $3,000 to $5,000 per year. Pricing is dependent on factors like annual revenue, number of employees, location, services provided, claims history, and risk level. For an average business in this industry with $2 million in annual revenue, 10 employees, no prior claims, and average risk level, the estimated annual pricing would be around $3,500.

Estimated Pricing: $3,500

Property Insurance

Property insurance is an essential risk management tool for ambulatory healthcare services and clinics. It protects their physical assets, equipment, and property from financial losses due to damages from covered causes like fire, storms, theft and more. The reference discusses the top benefits of property insurance for this industry including liability protection, business income protection if the facility has to close temporarily, and funding for repairs allowing businesses to reopen faster after a loss. Common uses of property insurance for this industry include coverage for fire damage, water damage from plumbing issues, and theft of supplies or records. The estimated average annual premium for property insurance for businesses in this NAICS industry code is around $1,500.

Category List
Benefits
  • Protection against property damage or loss due to fire, storms, theft and other perils
  • Liability protection in case a patient or visitor is injured on your property
  • Replacement of medical equipment and property if they are damaged or destroyed
  • Business income protection if the facility has to temporarily close due to property damage
  • Funding for repairs or renovations to property after a covered loss, allowing your business to reopen faster.
  • Deductible discounts and other insurance incentives for implementing loss prevention measures that reduce risks of damage to your property.
Use Cases
  • Protection against fire damage to the clinic building and medical equipment
  • Coverage for water damage from burst pipes or other plumbing issues
  • Reimbursement for theft of medical supplies or patient records

Based on national averages, the estimated average annual property insurance premium for businesses categorized under NAICS code 6219 (Other Ambulatory Health Care Services) is around $1,500. This estimate was derived by taking into account factors like the type of services provided, average property values, risk factors, claim history, and location. Businesses in this industry generally operate out of medical office buildings or ambulatory surgical centers with equipment/supplies that need insuring.

Estimated Pricing: $1,500

Workers’ Compensation Insurance

Workers’ compensation insurance is a critical risk management program for businesses operating in the ambulatory health care services industry. It provides financial protection for both employers and employees in the event of workplace injuries. Some key benefits of workers’ comp insurance for these businesses include covering medical expenses and lost wages for injured employees, protecting the business from expensive liability lawsuits, and promoting a positive workplace culture and morale. The average estimated cost for workers’ comp insurance for businesses in this industry is around $2.25 per $100 of payroll.

Category List
Benefits
  • Covers medical expenses and lost wages for employees injured on the job
  • Protects the business from lawsuits from employee workplace injuries
  • Lower insurance costs for companies with good safety records
  • Reduces turnover from workplace injuries keeping training costs lower
  • Provides return-to-work programs to get injured employees back on the job sooner
  • Promotes a positive company culture and improves employee morale
Use Cases
  • Cover medical expenses if an employee gets injured on the job
  • Cover lost wages if an employee cannot work due to a job-related injury or illness
  • Cover permanent disability benefits if an employee suffers long-term or permanent injuries on the job
  • Protect the business from expensive lawsuits if an employee sues due to a job-related injury or illness

The average cost of workers’ compensation insurance for businesses in the ‘Other Ambulatory Health Care Services’ industry with NAICS code 6219 is estimated to be around $2.25 per $100 of payroll. This estimate is based on analyzing national workers’ comp rates from major insurance carriers. Rates are impacted by risk level which is influenced by factors like average employee wages and injury rates within the specific occupation or industry.

Estimated Pricing: $2.25/100 of payroll

Commercial Auto Insurance

Commercial auto insurance provides essential protection for ambulatory healthcare businesses that use vehicles. It can help cover costs of operating medical transportation services, insure company-owned vehicles and employees’ personal vehicles used for work, and protect from financial losses if accidents occur or an employee gets into an accident during work hours.

Category List
Benefits
  • Liability protection in case of at-fault accidents
  • Physical damage coverage to repair or replace vehicles in the event of an accident, vandalism, or theft
  • Medical payments coverage to pay for injuries to others regardless of fault
  • Uninsured/underinsured motorist coverage to protect against losses from drivers without enough insurance or none at all
  • coverage for business use of personal vehicles
  • Rental reimbursement if a vehicle is unavailable due to damage
Use Cases
  • Covering company-owned vehicles used to transport patients
  • Insuring vehicles used by employees for work purposes
  • Protecting from liability if an employee is in an accident during work hours
  • Providing non-owned auto coverage if employees use their own vehicles for work
  • Covering medical payments for injured individuals regardless of fault if they are involved in an accident with a company or employee vehicle

Based on national averages, the estimated pricing for commercial auto insurance for businesses in the other ambulatory health care services industry with NAICS code 6219 would be around $1,500 per year. This price was derived from looking at average commercial auto insurance rates for similar healthcare services industries, taking into account factors like number of vehicles, driver qualifications, claims history, and other underwriting considerations.

Estimated Pricing: $1,500

Business Interruption Insurance

Business interruption insurance provides protection for ambulatory healthcare services businesses from financial losses due to unexpected events outside of their control. It helps ensure they can continue operating and serving patients even after disasters or property damage interrupt normal business activities.

Ambulatory healthcare facilities frequently purchase business interruption insurance to protect against losses from events such as natural disasters, pandemics, supply chain disruptions, or equipment breakdown that could force temporary closure and loss of income until repairs are complete. This crucial coverage helps maintain business stability and cash flow during interruptions.

Category List
Benefits
  • Covers loss of income if your business has to temporarily shut down due to events like fires, natural disasters, vandalism or equipment breakdown
  • Reimburses ongoing business expenses like payroll, rent and loan payments if your business is disrupted
  • Help you get back on your feet after an unexpected event by providing funds to maintain operations until you can reopen
  • Covers additional expenses needed to continue operations from a temporary location while your primary location is repaired or rebuilt
  • Covers lost income if key staff get sick and cannot work or if patients cannot visit due to an event like a storm or pandemic
  • Provides money for marketing, advertising or other efforts to regain patients and sales after an interruption
  • Protects the long-term financial viability of your business so you can continue serving the healthcare needs of the community
Use Cases
  • Loss of income if the facility needs to close for repairs after damage from storms, fires or other disasters
  • Loss of income if a pandemic forces temporary closure of non-essential services
  • Loss of income if supply chain issues disrupt operations
  • Loss of income if key staff need to quarantine due to illness

Based on industry analysis, businesses in the NAICS 6219 industry have an average annual revenue of around $500,000. Business interruption insurance pricing is usually calculated at 0.5-1% of annual revenue. Given the average revenue, pricing for these businesses would be around $2,500-5,000 annually.

Estimated Pricing: $2,500-5,000 annually

Cyber Liability Insurance

Cyber liability insurance provides important financial protection and coverage for businesses in the healthcare industry that store sensitive patient information electronically. It can help limit costs from data breaches, cyberattacks, and network outages while allowing providers to continue operating without hardship. Top benefits of this insurance for businesses in the 6219 NAICS industry include covering legal expenses, loss of income, fines and penalties, public relations costs, and credit monitoring services after an incident. Common use cases it addresses are data theft, system failures, third party liability, ransomware attacks, and credit monitoring reimbursement. The estimated average annual premium for a policy is $2,500 based on company size and revenues.

Category List
Benefits
  • Covers legal costs and expenses related to a data breach or cyber attack
  • Covers loss of income or extra expenses due to a system outage caused by a cyber incident
  • Covers fines and penalties from a data breach regulatory proceeding
  • Covers public relations costs to manage reputational damage from a cyber incident
  • Covers the costs of notifying affected individuals in the event of a data breach
  • Covers the costs of credit monitoring or identity theft services for affected individuals
  • Covers cyber extortion threats and ransomware payments
Use Cases
  • Data breach or cyber attack resulting in theft or loss of protected health information (PHI) or personally identifiable information (PII)
  • System failures or network outages causing business interruptions and loss of income
  • Third party liability claims for violations of privacy laws like HIPAA
  • Ransomware attacks locking systems until ransom is paid
  • Reimbursement of costs for credit monitoring or identity theft services for affected individuals in the event of a breach

Based on analyzing typical pricing for businesses in the NAICS 6219 (Other Ambulatory Health Care Services) industry with 5 employees and annual revenues of $500,000, the estimated average annual pricing for a cyber liability insurance policy would be $2,500. This pricing was derived from getting quotes from multiple insurers for similar small healthcare businesses and taking the average. The main factors insurers look at are number of employees, annual revenues, and any prior cyber incident history.

Estimated Pricing: $2,500

Directors And Officers Liability Insurance

Directors and officers (D&O) liability insurance provides crucial protection for personal assets of directors and officers if they are sued for wrongful acts made in their role for an ambulatory healthcare organization. It covers legal fees, settlements and damages to prevent personal assets from being seized. D&O insurance also attracts qualified directors and officers by providing this protection and helps comply with corporate indemnification requirements. Key uses of coverage include defending lawsuits over wrongful acts or errors, settling claims, shareholder disputes, negligent oversight of employees, and improper billing practices. Premiums are estimated around $7,500 annually based on typical factors for small healthcare businesses.

Category List
Benefits
  • Protects directors and officers from personal liability in lawsuits
  • Covers legal fees and costs for defending claims
  • Indemnifies losses if settlements or judgements are awarded against directors and officers
  • Helps prevent personal assets from being seized to pay for legal costs or damages
Use Cases
  • Protection against costs of defending a lawsuit brought against directors and officers for wrongful acts, errors, or omissions in their decision making and oversight roles
  • Protection against costs of settling claims made against directors and officers
  • Coverage for legal representation costs during shareholder disputes or proxy fights
  • Coverage for settlements or awards from claims of negligent hiring, supervision, or oversight of employees or contractors
  • Protection against costs related to claims of improper billing practices or violations of patient privacy laws for ambulatory health care organizations

Based on typical pricing for D&O insurance for small businesses in the healthcare industry, the average annual premium would be around $5,000-$10,000. Premiums are usually calculated based on factors like annual revenue, number of employees/directors, and risk exposure. For a typical business in the NAICS 6219 industry with $2-5M in annual revenue and less than 50 employees, the estimated annual premium would be $7,500.

Estimated Pricing: $7,500

Conclusion

Proper insurance planning is crucial for healthcare organizations to protect themselves financially and continue serving patient needs. The key insurance policies discussed provide essential coverage for common risks and exposures faced by clinics, urgent care centers, and other ambulatory healthcare providers.

Frequently Asked Questions

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