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    5 Replies Latest reply on Jul 1, 2009 8:33 AM by david_aa

    Business Insurance

    rich715 Newbie
      Just opened a healthcare business. Staffs are mostly independent contractors. Please give advise where to obtain liability insurance.
        • Re: Business Insurance
          cutcomp Wayfarer
          There are several different kinds of liability insurance you are likely going to need, and you might need to obtain them from different sources. Your everyday General Liability coverage which will provide premises liability can be obtained from most any insurance agent/broker that handles business insurance.

          But as a health care provider, you are also likely going to need professional liability insurance--that is, errors & omissions coverage, AKA malpractice insurance. This is a more specialized coverage, and you should likely check a couple different sources. You might want to check your local medical association, as many offer professional liability coverage to members. You should also contact a specialist broker that handles professional liability--an internet search should provide several sources.

          Finally, depending upon the particular state you are in, you are likely to need Workers Compensation insurance. Even though you say most of your workers will be independent contractors, in most states this does not absolve you of your liability for Workers Compensation. In most (but not all) states, any employer that utilizes the services of an uninsured independent contractor is responsible for Workers Compensation for such contractors. So you will again need to be talking with your local insurance agent/broker that handles business insurance. A few states require you to obtain Workers Comp coverage from their state fund (currently Ohio, Wyoming, Puerto Rico, U.S. Virgin Islands, and Washington use these monopoly state funds.)

          Some other states use state funds that compete with private insurance companies--California, Colorado, Idaho, Maryland, Montana, New York, Oklahoma, Oregon, Pennsylvania, and Utah. All other states require you to obtain an insurance policy form an approved insurance company (unless your company is large enough to be approved to self-insure. Generally, you have to be fairly large, though.)

          In those states that don't have state funds, there is a mechanism called Assigned Risk Plan, where companies can get WC coverage even when insurance companies aren't interested in voluntarily writing the insurance. Most smaller employers end up in Assigned Risk plans by default, as insurers are usually only interested in writing companies that generate larger premiums--but there are exceptions to this, so check around. Assigned Risk coverage in most states is a lot more expensive than what you can get in the voluntary market, so it can pay to shop around and get voluntary market coverage if at all possible. Check with multiple insurance agents, too, as different agents have access to different insurance companies.
          • Re: Business Insurance
            LUCKIEST Guide
            Business Insurance, Welcome

            Who are you?? Go to Members page and share some info. Do you have a Federal I D Number??

            Everybody in business should have an Accountant, a Lawyer and an Insurance Agent.

            Be careful with Independent Contractors. The IRS and State wages and hour could give you a hard time.

            • Re: Business Insurance
              riskman1 Wayfarer
              Not knowing where you are.... makes this tough and the postings are as correct as can be.

              Med Mal and E & O is very difficult to place but possible.

              Home Health care is booming but also creating problems in the BONDING market if the employees are in home of others.
              Are they all certified and licensed etc..... Documented and pre screened etc.

              Lots of questions and BIG BIG premiums! ( the cost of med mal continues to be the driving force in higher insurance (medical)

              I hope it was calculatedin your business model
              • Re: Business Insurance
                Intelicapital Adventurer

                I'm aware of a model that allows you to outsource HR/Payroll/Insurances/Risks...

                Contact me if you are interested in discussing it. Just view my profile for contact info.

                • Re: Business Insurance
                  david_aa Adventurer
                  Hello. Do you have a legal advice support for your business? You need to evaluate your risks first. The laws surrounding the employee vs independent contractor issues are
                  extremely complex and you should consult with a tax attorney on these issues. As to liability insurance programs, AIG provides plenty of them. Browse their offers together with your Lawyer and Accountant.