How much does healthcare business insurance cost?

Healthcare businesses and professionals spend an average of $29 per month, or $350 per year, for general liability insurance. Doctors, nurses, and other medical professionals may need this coverage in order to sign a commercial lease, get licensed, or work with certain clients.

General liability insurance covers legal costs when a third party (someone outside your company) files a lawsuit over property damage or a bodily injury. It also pays for advertising injuries, such as libel, slander, and copyright infringement.

Working with patients opens your business to risk, especially if you work with the frail or elderly. A patient might slip while getting out of a hospital bed, or trip over a loose rug in your waiting room. If they file a lawsuit, a general liability policy would help pay for your legal costs.

This is the average general liability insurance policy for healthcare businesses that buy from TechInsurance:

Premium: $29 per month
Policy limits: $1 million per occurrence; $2 million aggregate
Deductible: $500

The cost of general liability insurance depends on several factors, including the policy limits and deductible you choose. Insurance providers will also consider your profession, the size of your business, and any subcontractors or additional insured endorsements you may have.

Fortunately, small business owners don't have to pay a lot for insurance. Among healthcare businesses that buy with TechInsurance, 56% pay less than $30 per month for general liability insurance. Another 35% pay between $30 and $60 per month.

By choosing lower coverage limits or a higher deductible, you can reduce your premium to an amount that fits your healthcare company's budget. Most healthcare professionals (79%) choose $1 million per-occurrence and $2 million aggregate limits for general liability insurance.

The risks of your specific profession, such as speech therapy, radiology, or optometry, are a major factor when determining your insurance costs.

That might include:

• Whether patients come into your business
• The amount of foot traffic
• Interactions with patient property
• The claims history of others in your profession

To some extent, you can predict how much you'll pay for insurance by looking at costs for similar businesses. On average, home healthcare providers pay a lower rate of $25 per month for general liability insurance, while doctors and nurses pay a higher rate of about $40 per month.

Below, you can see how much different healthcare professionals pay for general liability coverage.

Small, low-risk healthcare businesses may be eligible for a business owner’s policy, which costs an average of $61 per month or $733 annually.

A business owner's policy bundles general liability coverage with commercial property insurance at a lower rate than buying these policies separately. It protects against the most common liability and property lawsuits and helps your business recover from fires, burglaries, windstorms, and similar incidents.

This is the average BOP for healthcare businesses that buy from TechInsurance:

Premium: $61 per month
Policy limits: $1 million per occurrence; $2 million aggregate
Deductible: $1,000

You can add business interruption insurance to a BOP to defend against the cost of a temporary shutdown tied to a covered property claim. For example, it would help pay for employee wages and the cost of renting an office while your therapy clinic is closed for renovation after a fire.

The cost of a business owner's policy primarily depends on the value of your medical equipment and other property. Other factors such as your business's size and location can also affect your premium.

That's why business owners end up with a wide range of premiums for the same coverage. For example, 37% of medical professionals pay less than $50 per month for a business owner's policy, and 70% pay $100 or less for coverage.

On average, healthcare business owners pay $56 per month for workers' compensation insurance, or $672 annually.

State laws determine when you need workers' comp. In most states, you need it as soon as you hire your first employee. Only Texas and South Dakota do not have requirements for workers' comp, but it's still recommended.

Workers' compensation pays for medical expenses and provides disability benefits if you or an employee suffers an injury on the job, or develops an occupational disease.

For example, if a home health aide or occupational therapist trips over an IV stand and suffers a concussion, this policy would pay for their ambulance ride, medical appointments, and prescriptions. It also supplies part of the income they miss out on while they are recovering and unable to work.

Most workers' compensation policies include employer's liability insurance. This type of insurance helps pays for legal defense costs related to workplace injuries.

Though sole proprietors and independent contractors aren't often required to carry workers' comp, it's still a good idea to buy this coverage. If you're injured on the job, your health insurance plan will likely deny the claim, leaving you with hefty out-of-pocket medical bills.

The chance of an on-the-job injury is the biggest factor in determining workers' compensation insurance premiums.

As you can see, 43% of healthcare businesses pay less than $50 per month for workers' compensation insurance. And 72% pay $100 or less per month for insurance coverage.

Insurance companies will take into account the number of employees you have, their occupational risks, and your claims history when calculating the cost of workers' comp.

Healthcare companies spend an average of $74 per month, or $883 annually, for cyber insurance. Also known as cyber liability insurance or cybersecurity insurance, this policy helps pay for the cost of complying with your state's data breach laws.

A cyber insurance policy can cover expenses related to a data breach or cyberattack, including legal fees and customer notification costs. It is especially crucial for companies that store patient information, such as health records or Social Security numbers.

The cost of cyber insurance primarily depends on the amount of sensitive information handled by your healthcare business.

The cost of professional liability insurance varies widely, as some professions face a much higher risk of malpractice claims. On average, healthcare businesses pay $50 per month, or $599 annually, for this coverage.

Also called medical malpractice insurance, this policy covers legal costs related to accusations of professional negligence. For example, a nurse could face a lawsuit for failing to prevent bed sores, or for giving the wrong medication to a patient.

Below is the average professional liability policy for healthcare professionals who buy from TechInsurance:

Insurance premium: $50 per month
Policy limits: $1 million per occurrence; $3 million aggregate
Deductible: $500

Some medical professionals may be able to bundle professional liability insurance with their general liability insurance or BOP. The cost of professional liability insurance depends on factors such as the policy limits you choose, the type of work you do, and your claims history.

On average, healthcare facilities and medical professionals spend $212 per month, or $2,544 per year, for commercial auto insurance.

Most states require this coverage for vehicles owned by a business. If you get into an accident, it can help pay for medical expenses, property repairs, and legal costs. It also covers vehicle theft and vandalism.

Keep in mind that sole proprietors and independent contractors who drive their own vehicle for work will need extra coverage as well. Your personal auto policy won't cover work-related accidents, so you'll want to consider buying hired and non-owned auto insurance (HNOA).

HNOA provides liability coverage for personal, leased, and rented vehicles driven for work purposes.

Insurance companies consider many factors when determining the cost of a commercial auto policy. That includes your employees' driving records, policy limits and deductibles, the number of vehicles you own and their value, and the coverage options you choose.

Healthcare professionals pay an average of $15 per month, or $185 per year, for fidelity bonds.

A fidelity bond reimburses your client directly in the event of employee theft. Unlike insurance, this amount must be paid back to the company that issued the bond.

Some clients may require your healthcare company to carry a bond before it will allow your employees onto their property. Even when it's not required, a bond is a good way to show clients that your business is dependable.

Bonds are very affordable, with the amount you pay dependent on the size of the bond.