Clinic Liability Insurance

Clinic Liability Insurance

Medical clinic liability insurance protects health, wellness, and medical centres from lawsuits alleging malpractice, property damange and other risks.

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Insurance for medical clinics

Health care, wellness, and life science organizations must navigate a myriad of pressing issues and obstacles while delivering world-class care to their patients. Owners of medical or wellness clinics, offices, or laboratories face a wide range of risks, including third-party lawsuits, allegations of medical malpractice, and damage or loss resulting from severe weather or accidents. Clinic liability insurance helps cover medical practitioners, wellness studios, and health clinic owners from those risks.

Clinic liability insurance is a customized policy providing financial support if sued for third-party bodily injury or property damage or allegations of professional misconduct, negligence, or malpractice. It can also cover damage or loss to your clinic or medical facility resulting from a natural disaster or extreme weather.

Clinic liability insurance covers most types of wellness and health clinics. A customized policy may include the following types of coverages:

  • Medical Malpractice Insurance: Also called professional liability or errors and omissions (E&O) insurance, medical malpractice is essential protection for your facility and reputation. It provides financial coverage for allegations or lawsuits alleging negligence, misconduct, and failing to deliver a service as promised if a patient suffers a financial loss. It covers your legal fees and any awards for damages against you and out-of-court settlements.
  • Commercial General Liability (CGL) Insurance: CGL is the foundation your clinic insurance policy needs. It covers costs associated with third-party bodily injuries and property damage on your premises. It is designed to pay for an injured person’s medical fees, your legal expenses if sued, and other forms of compensation. CGL also typically includes product liability insurance for any health and beauty products you use on or sell to your patients.
  • Commercial Property Insurance: Commercial property or business contents insurance covers the cost of repairing damages to your facility if damaged by fire, flood, extreme weather, vandalism, or theft. It includes coverage for your clinic’s contents, such as the furnishings, fixtures, inventory, and electronics. In addition, commercial property insurance typically includes business interruption coverage and is activated if you are forced to temporarily close your facility while repairs are underway to the building.
  • Equipment Breakdown Insurance: The equipment your health and wellness professionals use in your clinic to treat patients may suffer an electrical or mechanical malfunction. Equipment breakdown insurance covers the cost of repairing or replacing that equipment. Additionally, equipment breakdown coverage – also called boiler and machinery insurance – provides financial support to repair or replace damaged HVAC (heating, ventilation, air conditioning) systems, boiler and pressure vessels, and renewable or green energy equipment.
  • Cyber Liability Insurance: If your health and wellness facility suffers a cyber-attack, data breach, or is subjected to ransomware, cyber liability insurance pays the cost to restore your systems and software, any ransomware demand, and notification and credit monitoring fees for your affected patients.

Your health and wellness clinic may require other coverages to complete a customized, comprehensive policy. Speak to a licensed Zensurance broker about your needs to get a policy that’s tailored to your specifications.

Insurance companies consider a broad range of factors when determining your policy’s annual cost. A small business can expect to pay around $1300 per year for a clinic liability insurance package with a $1M coverage limit.

Insurers will want to know:

  • The services and treatments you provide
  • Where your clinic is located
  • How many employees you have
  • Your years of service as a clinic owner or health practitioner
  • Your training, education, and certifications
  • Your annual and projected gross revenue
  • Your insurance claims history

Any health services practitioner or owner/operator of a health and wellness or medical clinic should have clinic liability insurance, including:

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Common claims scenarios

therapist and client inside clinic

Problem: You treat a patient for repressed memories without relevant experience in the required technique. The patient later sues you, claiming that your treatment led to the development of false memories.

Outcome: Your medical malpractice insurance may pay for your legal defence costs and any out-of-court settlement or compensation awarded to your patient.

elderly patient inside clinic

Problem: An elderly patient visiting your clinic trips, falls, and fractures a hip while exiting your office. They sue you for third-party bodily injury.

Outcome: Your commercial general liability insurance may pay for the injured patient’s medical expenses and your legal defence fees.

medical equipment malfunction

Problem: During a heatwave at the height of summer, one of your medical equipment fails due to a short circuit. The cost for an emergency repair to the system is expensive and forces you to close the facility while repairs are completed.

Outcome: Your equipment breakdown insurance may cover the cost of the medical equipment repairs. The business interruption coverage within your commercial property insurance may pay for your losses while the building is closed.

Frequently asked questions

Do part-time practitioners working in a medical clinic require insurance?

Yes. If you hire a health and wellness practitioner to work part-time or temporarily at your facility, you need to ensure they carry professional liability insurance.

Are counsellors or practitioners who work from home covered by their respective home insurance policies?

No. If a counsellor or health and wellness practitioner works from home virtually or welcomes patients to their dwelling, they will require commercial general liability, commercial property, and professional liability insurance. Your residential home insurance policy is not designed to cover you for incidents or accidents related to running a business or managing a health and wellness practice.

Is there a difference between the type of insurance a counsellor and therapist need?

The terms counsellor and therapist are interchangeable and may refer to the same health and wellness practitioner type. Generally, a counsellor is a practitioner who treats a patient over a short period, and a therapist treats patients for an extended period. Both practitioners face similar professional liability risks and may require similar policies.

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Get the clinic liability insurance policy you need quickly and easily with Zensurance. Fill out our online application to get a free quote. Our licensed insurance brokers will shop our partner network of more than 50 insurance companies to find you the policy that suits your needs and budget.