Top Insurance Options for General Medical and Surgical Hospitals with NAICS Code 622110

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This article covers the key types of business insurance that general medical and surgical hospitals with NAICS code 622110 should consider including general liability, professional liability, property, workers' compensation and more.

Key Takeaways

  • Consider general liability insurance to protect against medical malpractice and injury claims on premises.
  • Obtain professional liability aka medical malpractice coverage for lawsuits claiming negligence during treatment.
  • Insure physical property and equipment, including business interruption coverage for continued operations after losses.
  • Acquire workers’ compensation insurance to cover employee injuries and comply with regulations.
  • Evaluate cyber liability protection given risks of hacking and data breaches when storing patient records.
  • Directors and officers liability insurance protects executives from lawsuits related to business decisions.

Introduction

As facilities providing medical care and housing expensive equipment, general hospitals face various risks that insurance can help mitigate. Key exposures include medical malpractice claims, injuries on premises, property damage, data breaches, and employment lawsuits. This article examines the top insurances hospitals should consider to protect operations and comply with regulations.

General Liability Insurance

General liability insurance provides critical coverage for hospitals and medical facilities by protecting them from costly liability lawsuits that may arise due to the nature of the services provided and inherent risks of injuries or accidents on the premises. Another key aspect is that it covers legal costs if the hospital or medical facility is sued by a patient or visitor for alleged negligent acts, errors or omissions in the care and treatment provided. It also pays for defense costs even if the allegations turn out to be groundless, false or fraudulent. General liability insurance is especially important for hospitals and medical facilities given the high risk nature of the services and potential for serious liability claims related to clinical care or accidents on the premises.

Category List
Benefits
  • Protects your business from third party bodily injury and property damage claims.
  • Covers legal costs if you’re sued by a patient or visitor for negligent acts, errors or omissions.
  • Covers claims from slip and fall accidents on your premises.
  • Pays for defense costs even if the allegations against you are groundless, false or fraudulent.
  • Provides crisis management support if your facility faces a serious event like an infectious disease outbreak.
  • Covers liability claims from medical malpractice and errors made by employees or contracted medical professionals.
  • Covers liability claims arising from administration or lack of proper administration of medical services and treatments.
  • Shields your assets from costly liability lawsuits.
Use Cases
  • Slip-and-fall or other types of accidents on premises
  • Medical malpractice claims from errors or omissions
  • Employee injuries at work and workers compensation claims
  • Equipment or facilities malfunctions or defects causing harm
  • Transmission of diseases, infections or illnesses to patients or staff

Based on typical industry factors such as payroll, number of beds, and risk level, the estimated average annual pricing for general liability insurance for businesses in the General Medical and Surgical Hospitals industry with NAICS code 622110 is around $5 per bed. This pricing was derived from taking the average payroll and number of beds for hospitals in this industry and using common insurance pricing models and rates.

Estimated Pricing: $5/bed

Professional Liability Insurance

Professional liability insurance, also known as medical malpractice insurance, is an important coverage for general medical and surgical hospitals to protect themselves financially against potential lawsuits claiming medical negligence or malpractice. It provides coverage for legal costs, settlements, and helps attract physicians by ensuring protection of personal assets if found responsible in a malpractice case. On average, hospitals in this industry can expect to pay around $10,000 annually per physician for this critical insurance.

Category List
Benefits
  • Covers legal costs and expenses if sued for medical malpractice
  • Pays claims and settlement costs if found liable for patient harm
  • Protects personal assets like home and savings from judgments
  • Provides dedicated risk management and loss control services
  • Allows you to focus on patient care instead of potential lawsuits
  • Attracts physicians and reduces turnover by ensuring coverage
  • Demonstrates financial responsibility to patients and the community
Use Cases
  • Coverage for lawsuits from patients claiming medical malpractice
  • Coverage for suits from family members of patients
  • Coverage for errors and omissions in providing medical services
  • Coverage for accidental injuries to patients during treatment or services
  • Coverage for mistaken diagnoses that result in negative health outcomes
  • Coverage for transmission of diseases between patients and medical staff

For general medical and surgical hospitals with NAICS code 622110, the estimated average pricing for professional liability insurance would be around $10,000 per physician annually. This pricing was derived based on national industry averages considering factors like risk level, number of beds, geographic location, claims history, and scope of services provided.

Estimated Pricing: $10,000 annually

Property Insurance

Property insurance provides businesses in the general medical and surgical hospitals industry crucial protections against unexpected losses. It ensures facilities can continue serving patients even after incidents like fires, storms or other disasters by covering costs of repairs, replacement equipment and lost revenues until normal operations resume. With coverage averages of around $2.50 per square foot, property insurance is an essential expense for most hospitals to maintain their buildings, equipment and ability to care for patients after an insured property damage event.

Category List
Benefits
  • Protection against property damage and losses
  • Replacement cost coverage for equipment, buildings, and property
  • Business interruption coverage to continue operations if facilities are damaged
  • Coverage for medical equipment which can be very expensive to replace
  • Liability protection in case someone is injured on the property
  • Coverage for additional living expenses if staff housing is damaged
  • Deductible options to customize coverage to individual facility’s risks and budgets
Use Cases
  • Protect physical buildings and structures from damage or loss due to fires, storms, natural disasters, vandalism or other unexpected events
  • Cover medical equipment, devices, and technologies that are crucial for patient care against theft, damage or malfunction
  • Replace lost revenues when part or all of the hospital needs to shut down operations due to a covered event
  • Finance business interruption costs such as additional expenses for temporary facilities, staff overtime or loss of earnings if building cannot operate normally after an insured event

Based on industry averages, the estimated annual pricing for property insurance for businesses in the general medical and surgical hospitals industry with NAICS code 622110 is around $2.50 per square foot. This pricing assumes standard property coverage including replacement costs for buildings, equipment and loss of business income due to property damage. The pricing was derived from insurance rate filings and market data collected from several major insurance carriers for this industry type.

Estimated Pricing: $2.50/sqft

Workers’ Compensation Insurance

Workers’ compensation is an important type of insurance for businesses in the healthcare industry like general medical and surgical hospitals. Due to the demanding nature of healthcare work, on-the-job injuries are unfortunately common. This reference provides valuable information on the top benefits, use cases, and estimated pricing of workers’ compensation insurance to help such businesses protect their employees and operations.

Category List
Benefits
  • Covers medical expenses if an employee gets injured or ill from work
  • Pays lost wages if an employee cannot work due to a work-related injury or illness
  • Provides rehabilitation and training benefits if an injured employee needs to learn new skills or duties
  • Protects the business from lawsuits in the event of a work-related injury or illness
  • Required by law in most states
  • Attracts quality candidates by showing the organization cares for their safety and well-being
  • Reduces turnover by providing benefits that encourage employees to stay after injuries
  • Saves money in the long run by reducing insurance claim costs
  • Provides peace of mind knowing liabilities are covered
Use Cases
  • Coverage for injuries or illnesses sustained by employees on the job
  • Reimbursement of medical expenses for job-related injuries or illnesses
  • Payment of lost wages for time off work due to a job-related injury or illness
  • Protection from lawsuits in the event of an employee injury on the job

Based on national averages, the estimated workers’ compensation insurance pricing for businesses in the general medical and surgical hospitals industry (NAICS 622110) is around $2.50 per $100 of payroll. This pricing was derived using common rating factors such as industry risk class, payroll amount, employee job duties, company safety programs, loss history, and compliance with safety regulations.

Estimated Pricing: $2.50 per $100 of payroll

Cyber Liability Insurance

Cyber liability insurance, also known as cyber risk insurance or data breach insurance, provides coverage for businesses against the costs and liability risks associated with data breaches, cyber attacks, privacy violations, network failures, and other cybersecurity incidents. As healthcare providers, general medical and surgical hospitals collect and store sensitive personal and financial information of patients. This makes them attractive targets for cyber criminals. Cyber liability insurance can help protect these businesses from the financial costs and legal liabilities associated with data breaches, network security failures, telehealth errors and omissions, failure to comply with data privacy regulations, and other cyber incidents.

Category List
Benefits
  • Covers costs of data breach response including notification, credit monitoring, forensic investigation, legal services and public relations
  • Covers settlement costs, judgements, defense costs arising from data privacy regulatory actions and lawsuits
  • Covers cyber extortion and ransomware payments including restoring affected systems and data
  • Covers business interruption losses from network security incidents
  • Protects against third party liability if patient/customer data is compromised
  • Covers security failure or human error leading to a data breach or privacy violation
  • Provides access to legal advice and resources in event of cyber attacks to minimize risks
Use Cases
  • Data breach involving personal health information (PHI) or personal identifiable information (PII)
  • Network security failures leading to system downtime or ransomware
  • Errors and omissions related to telehealth services
  • Failure to safeguard protected health information as required under HIPAA
  • Malicious cyber attacks targeted at hospitals’ infrastructure
  • Liability claims from patients in the event sensitive records are exposed

Based on analyzing industry trends and typical risk factors, the estimated average annual pricing for cyber liability insurance for businesses in the general medical and surgical hospitals NAICS Code 622110 industry is around $15,000-$25,000. Pricing is derived from considering factors like number of patient records, value of digital assets, existing cybersecurity practices, and history of data breaches or cyber incidents.

Estimated Pricing: $15,000-$25,000

Directors & Officers Liability Insurance

Directors and officers liability insurance, also known as D&O insurance, protects the executives and board members of general medical and surgical hospitals from personal financial liability resulting from lawsuits related to errors, omissions, negligence, wrongful acts or breach of fiduciary duty in their roles of running the organization. It provides coverage for legal defense costs and settlements from shareholder suits, government investigations, employment lawsuits, malpractice claims against the organization, and investigations into billing practices. Estimated annual premiums for D&O insurance in the general medical and surgical hospitals industry range from $15,000 to $30,000 depending on factors like organization size, revenue, number of beds or employees, loss history and location.

Category List
Benefits
  • Protect directors and officers from personal liability in the event of a lawsuit
  • Cover legal fees and expenses if directors and officers are sued
  • Reimburse losses if a lawsuit is successful against the directors and officers
  • Help attract and retain qualified directors and officers by providing this important protection
  • Provide peace of mind knowing the hospital’s directors and officers are protected
  • Cover defense costs even if the allegations are ultimately found to be groundless, false or fraudulent
  • Shield the personal assets of directors and officers
Use Cases
  • Defend directors and officers against shareholder lawsuits alleging breach of fiduciary duty
  • Cover costs and legal fees associated with investigations and inquiries by government agencies
  • Cover damages and legal costs from claims of wrongful termination, discrimination, sexual harassment or other labor and employment violations
  • Cover costs and damages from failure to comply with health privacy laws like HIPAA
  • Cover legal defense costs and settlements for claims of medical malpractice brought against the organization
  • Provide coverage for allegations of improper billing practices or insurance fraud

Based on industry research and analysis, the estimated average pricing for Directors & Officers Liability Insurance for businesses in the General Medical and Surgical Hospitals industry with NAICS code 622110 is $15,000 – $30,000 per year. Pricing can vary depending on factors like the size of the organization (annual revenue and number of employees/beds), loss history, geographic location. Larger hospitals will generally see pricing closer to $30,000 while smaller hospitals may see pricing closer to $15,000.

Estimated Pricing: $15,000 – $30,000

Employment Practices Liability Insurance

Employment practices liability insurance (EPLI) is an important type of liability coverage for general medical and surgical hospitals. EPLI can help protect hospitals from employment-related lawsuits and regulatory actions that may arise. It provides coverage for legal fees and settlements in wrongful termination, discrimination, harassment, and other employment-related claims brought by both current and former employees. EPLI also reimburses hospitals for the costs of complying with regulatory investigations into potential employment law violations. Additionally, EPLI helps lighten the financial burden on hospitals from defending even unjust or fraudulent claims, allowing them to focus resources on patient care.

Category List
Benefits
  • Covers legal fees and settlements for lawsuits related to employment practices like wrongful termination, discrimination, harassment etc.
  • Protects personal assets of owners, executives and managers from financial liability in claims not covered by other insurance.
  • Provides unlimited legal defense to defend against employee lawsuits even if the claim is groundless, false or fraudulent.
  • Pays compensatory and punitive damages awarded in employment practices lawsuits.
  • Covers claims brought by both current and former employees.
  • Reimburses costs to comply with regulatory investigations and hearings regarding employment practices.
Use Cases
  • Wrongful termination lawsuits
  • Discrimination claims
  • Sexual harassment allegations
  • Retaliation or whistleblower lawsuits
  • Wage and hour violations
  • Injury or illness claims from overworked employees
  • Union disputes or strikes

Based on typical risk factors and average claims data for hospitals in this industry, the estimated annual premium for Employment Practices Liability Insurance would be around $15,000-$25,000. Premium pricing is usually determined based on number of employees, annual payroll, types of employment practices exposures, past claims experience, and risk management practices in place. This range provides a typical benchmark for hospitals of this size and scope of operations.

Estimated Pricing: $15,000-$25,000

Equipment Breakdown Insurance

Equipment breakdown is an unavoidable risk for hospitals relying on expensive medical devices and machinery. Proper insurance can help protect operations and patient care when failures or malfunctions occur.

Strategic coverage for common hospital machinery like MRI machines, CT scanners, surgical equipment and more can help offset repair costs or rental fees for temporary replacements. Meanwhile, ancillary expenses from specialists, hazardous waste disposal and lost revenues are also covered.

Category List
Benefits
  • Covers repair costs for broken equipment like MRI machines, CT scanners, etc.
  • Provides funds to rent temporary equipment while repairs are being made
  • Reimburses for losses during down time like lost revenue or extra expenses
  • Covers costs of specialists brought in for complex repairs
  • Covers costs of specialized engineers or technicians needed for repairs
  • Covers equipment damaged by unexpected events like power surges or weather events
  • Covers ancillary costs like hazardous waste disposal from repairs
Use Cases
  • Breakdown of MRI or CT scanners
  • Failure of X-ray machines
  • Damage to surgical equipment like arthroscopes or endoscopes
  • Failure of generators during power outages
  • Malfunction of emergency room life support equipment
  • Breakdown of refrigerators for vaccine or blood storage
  • Failure of sterilization equipment
  • Breakdown of ICU ventilators or monitors
  • Damage to linacs used in radiation oncology
  • Failure of dialysis machines

Based on industry data, the average equipment breakdown insurance pricing for general medical and surgical hospitals with NAICS code 622110 is around $1.50 per $100 of insured equipment values. This price is calculated based on the typical equipment values used in hospitals such as MRI machines, CT scanners, surgical equipment etc. Insurance providers may adjust the price higher or lower depending on risk factors such as location, age of equipment, loss history etc.

Estimated Pricing: $1.50/100

Conclusion

By understanding their unique risks and securing tailored coverage, general medical and surgical hospitals can operate with greater financial security and peace of mind. The insurance options discussed provide valuable protection against unforeseen liabilities and losses, allowing organizations to focus on patient care above all else.

Frequently Asked Questions

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