Business Insurance FAQs

Business Insurance FAQs

• I work in an office as an independent contractor. The other doctor in the office has a business owners' insurance policy in place; will this cover me as well?

  You cannot be covered under anyone else's insurance policy as an independent contractor. As an independent contractor you are a separate business entity and not considered an employee under someone else's liability insurance policy. In most cases you will need your own general liability or business owners' insurance policy to protect yourself and your practice, including any of your owned property.

  Claims Example: Sue Smith is a patient who trips and falls on a piece of frayed carpet in the office and breaks her arm. Sue Smith then names all doctors in the office (three total, all independent contractors) in a liability lawsuit for negligence. If there is a claim in the office where a third party is injured and you are named in a lawsuit as an independent contractor, any other doctors general liability insurance may not come to your rescue. It is always important to carry your own liability policy to protect your business as an independent contractor, LLC, or corporation.

• What is the difference between professional liability and general liability?

  Professional Liability covers you for the act of treating the patient. This provides coverage for any negligent act while treating the patient. This coverage is also referred to as malpractice insurance.

  General Liability protects you against exposures other than professional liability, such as bodily injury (slip and fall) and property liability (damages to rented premises).

• I am renting a booth at a trade show to promote my practice. Does my liability coverage follow me offsite?

  Yes, your general liability policy or business owners' insurance will provide coverage for your temporary rented space.

• My state does not require mandatory workers' compensation insurance for my employees. Should I still have a workers' compensation policy in place?

  Yes. You still may be liable in a work-related injury for negligence and medical expenses. A workers' compensation policy will provide coverage for you and your practice for both types of loss.

• What does my business income coverage on my business owners' insurance policy cover?

  This provides coverage for your loss of income due to a covered claim while your office is being repaired. This coverage may also pay for any extra expenses related to the covered claim to continue services.