Don’t gamble with your malpractice insurance
With major insurance carriers moving out of the malpractice area, it is harder to find insurance coverage, and it can be expensive, says Bill Thompson, CIC, senior vice president and partner at Smith, Bell & Thompson, a Burlington, VT, insurance agency specializing in coverage for health-related organizations.
"Unfortunately, some home health agencies that are smaller, independent agencies, may be taking a chance by having no coverage," he says.
"This is a real gamble because as our society becomes more litigious and jury awards rise, a home health manager runs the risk of losing the business to one claim," he adds.
To control costs, a home health manager can retain more of the risk by having a higher deductible, says Thompson. "By maintaining a deductible of $5,000 and higher, you can keep premiums lower," he explains.
You can also look at a "claims-made" policy rather than an occurrence form of insurance, says Thompson.
The difference is that the occurrence type of insurance is good for the one year that you buy it while the claims-made insurance is continuous but only covers claims for the year or years for which you buy it, he says. "Claims-made" policies are less expensive, he adds.
Statute of limitations might differ from location to location and depend on the type of claim, but more than 95% of all claims made will happen within four to five years of the incident, says Thompson.
To keep the cost of your workers’ compensation insurance down, be sure to use good hiring practices and check out former employees for any workers’ compensation claims that potential employees might have filed, says Thompson.
"If you notice a job hopper applying for a position, be sure to check [the applicant] carefully. Job hopping is sometimes an indication of a workers’ compensation abuser," he advises.
Also, keep in mind that part-time employees vs. full-time employees file more workers’ compensation claims, says Thompson.
Make sure that your part-time employees are receiving the same safety and body mechanics training that your full-time employees receive, he adds.
With major insurance carriers moving out of the malpractice area, it is harder to find insurance coverage, and it can be expensive, says Bill Thompson, CIC, senior vice president and partner at Smith, Bell & Thompson, a Burlington, VT, insurance agency specializing in coverage for health-related organizations.You have reached your article limit for the month. Subscribe now to access this article plus other member-only content.
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