As a solo family medicine practitioner, understanding and securing the right types of insurance is crucial for protecting your practice, your finances, and yourself against various risks. This document outlines key insurance types you should consider when setting up and running your own medical practice.

Professional Liability Insurance (Malpractice Insurance)

• Purpose: Protects against claims of negligence or harm caused by professional services. This is essential as medical errors can lead to lawsuits.
• Coverage: Includes legal fees, settlements, or judgments related to claims of medical malpractice.
• Considerations:
  • Claims-Made vs. Occurrence: Claims-made policies cover claims only if both the incident and the claim occur during the policy period. Occurrence policies cover incidents that happen during the policy period, regardless of when the claim is made.
  • Tail Coverage: If you switch insurers or retire, consider tail coverage to protect against claims made after your policy has ended

More information is available in the Selecting a Professional Liability Carrier.

Office (General) Liability Insurance

• Purpose: Covers bodily injury or property damage that could occur in your office environment, not directly related to professional services.
• Coverage: Includes slip-and-fall accidents, damage to patient property, or injuries from office equipment.
• Considerations:
  • Check the policy limits and ensure they cover potential risks in your specific office setup.
  • Ensure coverage extends to any shared or leased spaces if applicable.

Workers' Compensation Insurance

• Purpose: Mandatory in many areas if you have employees, this insurance covers medical costs and lost wages for employees injured on the job.
• Coverage: Includes medical treatment, rehabilitation, and wage replacement.
• Considerations:
  • Even with no current employees, if you plan to hire in the future, consider this insurance to avoid penalties for non-compliance.
  • If you have only part-time or contract workers, verify local laws regarding coverage requirements.

Disability Insurance

• Purpose: Provides income protection if you become unable to work due to illness or injury.
• Coverage: Offers a percentage of your income for a period or until you can return to work.
• Considerations:
  • Own-Occupation vs. Any-Occupation: Own-occupation policies pay out if you can't perform your specific medical duties, whereas any-occupation policies require you to be unable to work in any job.
  • Consider the waiting period before benefits start and how long the benefits will last.

Business Interruption Insurance

• Purpose: Covers loss of income due to events that disrupt your ability to operate your practice, like natural disasters or significant equipment failures.
• Coverage: Includes lost revenue, fixed costs like rent, and sometimes the cost of operating from a temporary location.
• Considerations:
  • Assess the risk of such events in your practice location.
  • Review policy details for coverage limits, waiting periods, and what is considered an "interruption."

Additional Insurance Types to Consider:

• Property Insurance: For leased or owned property to cover damage to office contents.
• Cyber Liability Insurance: With electronic health records, protecting against data breaches is vital.
• Life Insurance: To provide for your family or cover business debts in case of your death.
• Health Insurance: If not covered by a spouse or not opting for a high-deductible plan with an HSA.
• Commercial Auto Insurance: If you use a vehicle for business purposes.

Insurance is not just a cost but an investment in peace of mind and financial stability. As a solo practitioner, you must balance the cost of insurance with the risks you face. Regularly review your insurance needs as your practice grows or changes and consult with insurance professionals who specialize in medical practices to ensure you're adequately covered. Remember, the right insurance can be the difference between a minor hiccup and a catastrophic financial event.