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From wrongful transactions to accusations of negligence, malpractice, or even fraud - medical billing companies face a tremendous amount of risk, which can get them sued.
And while medical billing service providers can do a lot to minimize mistakes that can become grounds for lawsuits and claims - accidents are inevitable, and the second best way to protect your business from those is by taking out an adequate level of insurance.
How Much Does Medical Billing Insurance Cost?
The cost of insurance for your medical billing business will vary depending on the level of cover you want to take out, the size of your company, the state your business operates out of, and other similar factors to those above.
The average medical billing firm in the U.S. pays around $40 per month on business owner’s insurance, which totals around $480 per year. This policy combines commercial property insurance with general liability insurance.
If your medical billing business employs any staff - worker’s compensation insurance will be required by law. This policy covers your staff in case they get sick or injured at work. The insurance company will compensate them for any medical bills and hospital fees they may accumulate and also cover any lost wages if they had to take time off work.
For general liability insurance, the average medical billing firm in the United States pays around $30 per month or $360 per year. This policy will protect your company from claims and lawsuits related to property damage and third party bodily injuries.
To protect your business from lawsuits and claims on the basis of malpractice, professional mistakes, and negligence, professional liability insurance will be necessary. This policy costs around $500 per year.
Medical billing businesses are also a common target for cybersecurity attacks, and the best way to protect your business from the consequences in case of a data breach is through cyber liability insurance. You can expect to pay around $140 per month for that, or around $1,680 per year.
What Types of Insurance Do Medical Billing Businesses Need?
Medical billing service providers can take advantage of several insurance policies. Typically - the insurance policies your specific business actually needs to take out will depend on the size of your business, the number of staff you have employed, the state you operate out of, and more.
Please continue reading to find the most recommended insurance policies for medical billing services:
Why Do Medical Billing Businesses Need Insurance?
The most common reason why medical billing businesses need insurance is to free themselves from any financial liabilities that may arise in the event of a claim or a lawsuit.
For instance, if your medical billing business suffers from a data breach, that can become grounds for hefy lawsuits and claims. And when you have insurance in place, the insurance company will step in and take care of all financial liabilities that your company may have accumulated as a result of the lawsuit or claim.
In other cases, state law often requires medical billing companies to take out a certain level of cover to protect everyone involved in case an accident were to happen - regardless of its nature.
Either way, getting insurance for your medical billing firm is always a great idea, and is definitely worth the investment long term.