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.
What is clinic liability insurance?
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.
What does it cover?
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.
Who needs clinic liability insurance?
Any health services practitioner or owner/operator of a health and wellness or medical clinic should have clinic liability insurance, including:
How much does it cost?
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
Common claims scenarios
Frequently asked questions