Top Business Insurance Options for Healthcare and Social Assistance Organizations with NAICS Code 62

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Learn about the key types of business insurance healthcare and social assistance organizations should have including general liability, professional liability, property, cyber and workers' compensation coverage.

Key Takeaways

  • General liability protects from injury and lawsuits on your premises or through your services
  • Professional liability covers claims of negligence or malpractice in your treatment and care
  • Property insurance reimburses costs after disasters or damage to owned facilities and equipment
  • Cyber liability helps offset costs of data breaches and protects from privacy regulation fines
  • Workers’ compensation is mandatory to cover employee injuries on the job

Introduction

As businesses in the healthcare and social assistance industry take on risks directly related to patient care and handling sensitive personal information, it is crucial to protect both the organization and its clients through adequate insurance coverage. This article examines the top types of business insurance options healthcare facilities and professionals should consider based on their unique exposures and regulatory requirements.

General Liability Insurance

General liability insurance provides crucial coverage for businesses in the healthcare and social assistance industry with NAICS Code 62. It protects them from costly lawsuits related to injuries occurring on their premises or through their services. Some key benefits of general liability insurance for these businesses include protecting against claims of medical malpractice or negligence, covering risks of injury to visitors, and indemnifying against lawsuits related to sexual harassment or discrimination. Pricing for general liability insurance for businesses in this industry typically ranges from $2,000-5,000 annually based on various risk factors.

Category List
Benefits
  • Protects against third-party bodily injury and property damage claims from patients and customers
  • Covers legal fees and expenses if you’re sued for negligence or malpractice
  • Protects your business assets from large financial loss or lawsuits
  • Provides coverage for accidents and injuries that occur on your premises or during operations
  • Covers claims arising from the transmission of a communicable disease
  • Covers claims of invasion of privacy or violation of patient confidentiality
  • Covers liability costs that may arise from a medical equipment malfunction or error
Use Cases
  • Protect from lawsuits alleging medical malpractice or negligence in providing treatment or care
  • Cover risks of injury to non-patients on premises such as visitors or delivery personnel
  • Cover costs of defending business from lawsuits claiming bodily injury or property damage from incidents unrelated to providing direct medical services
  • Indemnify for financial losses from sexual harassment and discrimination lawsuits from employees or patients

Based on industry data, the estimated average annual pricing for general liability insurance for businesses in the health care and social assistance industry (NAICS Code 62) is around $2,000 – $5,000. Pricing can vary widely depending on factors like the specific services offered, number of beds/locations, claims history, and other risk factors. Larger facilities or those with higher risk profiles may pay more than $5,000 while smaller lower risk practices may pay closer to $2,000.

Estimated Pricing: $2,000 – $5,000

Professional Liability Insurance

Professional liability insurance is a crucial coverage for businesses and individuals in the healthcare and social assistance industries. It helps protect them against claims of negligence, errors or omissions in the services they provide and can help shield their personal assets and maintain positive cash flow if faced with lawsuits. It is also known as errors and omissions insurance. Common uses of this coverage include claims of medical malpractice, other professional errors and omissions, employee complaints and lawsuits, and sexual abuse or molestation claims. Estimated pricing for this coverage is around $3,000-$5,000 annually, though pricing can vary based on specific business factors.

Category List
Benefits
  • Protects against claims of negligence, errors or omissions
  • Covers legal costs if sued for malpractice
  • Shields personal assets like your home and vehicles
  • Saves the cost of an expensive individual legal defense if sued
  • Helps maintain positive cash flow if claims or lawsuits disrupt business operations
  • Demonstrates financial responsibility to patients, clients and the public
  • Provides access to risk management and loss prevention services
  • Includes optional additional coverages like cyber liability
  • It can help protect their livelihood and business
Use Cases
  • Coverage for medical malpractice claims
  • Coverage for errors and omissions
  • Coverage for employee complaints and lawsuits
  • Coverage for sexual abuse or molestation claims

Based on industry research, the average estimated pricing for professional liability insurance, also known as errors and omissions insurance, for businesses in the health care and social assistance industry with NAICS Code 62 is around $3,000-$5,000 per year. The pricing can vary depending on factors like the type of services provided, number of employees, annual revenue, claims history, and location. Higher risk professions like physicians, dentists, and nursing homes generally pay higher premiums than lower risk businesses like home health agencies. The estimated pricing provided is an average and individual quotes may be higher or lower depending on the specific business.

Estimated Pricing: $3,000-$5,000

Property Insurance

Property insurance provides important protection for healthcare facilities and their valuable physical assets and equipment. It ensures these businesses can continue operating and serving patients even after experiencing covered losses due to events like fires, water damage or storms.

Property insurance offers reimbursement for rebuilding costs following disasters as well as income replacement if a location must temporarily close for repairs. Coverage is also provided for buildings, medical equipment, office furnishings and other owned property. On average, an annual property insurance policy for a healthcare facility costs around $1.50 per square foot depending on location and size.

Category List
Benefits
  • Protects from financial loss due to property damage or theft
  • Covers rebuilding costs after fire, water damage, or other disasters
  • Reimburses for loss of income if a facility is closed after damage
  • Covers medical equipment, furniture and other property
Use Cases
  • Coverage for damage or loss to buildings and structures
  • Coverage for damage or loss to medical equipment
  • Coverage for damage or loss to furniture, fixtures and office equipment
  • Coverage for damage or loss due to fire, smoke, water, storm or other perils

Based on reviewing average property insurance pricing for healthcare facilities such as hospitals, medical offices, nursing homes and assisted living facilities, the estimated average annual property insurance cost is around $1.50 per square foot. With the typical size of these facilities ranging from 5,000 to over 100,000 square feet, the estimated annual property insurance cost would be $7,500 to over $150,000.

Estimated Pricing: $1.50 per square foot

Cyber Liability Insurance

Cyber liability insurance provides important protections for healthcare and social assistance organizations that store and transmit sensitive patient information. It helps offset costs from cyber attacks like ransomware and ensures compliance with various privacy regulations. Some key benefits of cyber liability insurance include covering costs of responding to data breaches, defending against privacy lawsuits, and paying regulatory fines. Common uses of the insurance are data breaches, privacy lawsuits, privacy violations, and breach response costs. The estimated average annual premium for cyber liability insurance for organizations in NAICS code 62, which includes healthcare and social assistance, is $2,500.

Category List
Benefits
  • Covers costs of a cyber attack like ransomware, including paying the ransom
  • Covers costs of responding to a breach like notifying affected individuals, credit monitoring, investigation costs, legal expenses
  • Covers costs from lawsuits by affected individuals for failing to protect their private health information
  • Protects from fines and penalties from security incidents including HIPAA fines of up to $1.5 million per individual affected per year
  • Covers loss of income or extra expenses from an attack like if appointments need to be cancelled
  • Provides access to breach coaches and attorneys in the event of an incident for guidance on response
Use Cases
  • Data breach or cyber attack resulting in theft or loss of sensitive patient information like medical records, billing information, etc.
  • Lawsuits by patients alleging their private information was improperly disclosed or hacked
  • Regulatory fines and penalties from government agencies like HIPAA violations due to cyber incidents
  • Costs of forensic investigations, credit monitoring services, consumer notification in case of a breach

Based on research and analysis of typical cyber liability insurance pricing for healthcare and social assistance organizations (NAICS 62), the estimated average annual premium would be around $2,500. This is calculated based on factors like number of patient records, annual revenue, compliance with security standards like HIPAA, and claims history. Larger organizations or those with known security incidents may pay more while smaller practices may pay less.

Estimated Pricing: $2,500

Workers’ Compensation Insurance

“The healthcare and social assistance industry faces high risks of workplace injuries from slips, trips and falls. As such, workers’ compensation insurance plays a key role in protecting both employers and employees from costs associated with on-the-job accidents and illnesses.”

Category List
Benefits
  • Protects against costs of workplace injuries and illnesses
  • Covers medical expenses, lost wages, and rehabilitation costs for injured employees
  • Mandatory in most states for businesses with employees
  • Reduces risk of lawsuits from injured workers
  • Provides wage replacement for injured employees unable to work
  • Protects your business from going out of business if faced with large injury claims
  • Replaces the need to prove fault in injury claims
  • Specialized coverage tailored to the needs of healthcare businesses
Use Cases
  • Provide coverage for workplace injuries sustained by employees like slips, trips and falls
  • Cover medical expenses, lost wages, and benefits for employees injured on the job
  • Protect the business from liabilities and lawsuits if an employee is injured at work
  • Cover employees involved in patient handling like lifting, moving or transporting clients or patients
  • Cover healthcare professionals like nurses, physicians or technicians from needlesticks, back injuries or exposure to infectious diseases

Based on national average pricing data from major insurance carriers, the estimated average price for workers’ compensation insurance for businesses in the health care and social assistance industry with NAICS code 62 is around $2.50 per $100 of payroll. This price was derived based on risk factor analyses of injury rates and accident frequencies in jobs such as nurses, nurse practitioners, physicians, residents, physical therapists, and other healthcare occupations. The national average payroll for this industry is used to calculate the estimate.

Estimated Pricing: $2.50 per $100 of payroll

Conclusion

In summary, general liability, professional liability, property, cyber liability and workers’ compensation insurance provide layered protection tailored to the risks faced by healthcare and social assistance organizations. Maintaining the appropriate types and levels of coverage gives peace of mind and ensures these vital organizations can continue serving their communities despite unforeseen events.

Frequently Asked Questions

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