MedEsthetics magazines offers business education and in-depth coverage of the latest noninvasive cosmetic procedures for physicians and practice managers working in the medical aesthetics industry.
Issue link: https://medesthetics.epubxp.com/i/535392
Following is a breakdown of the various types of cover- age available to protect you, your staff and your facility in the event of a claim or catastrophe. When opening a private medical practice or medspa you should have at minimum: workers' compensation, general and professional liability insurance, property cov- erage, HIPAA compliance coverage and sexual molesta- tion coverage (typically excluded unless you purchase a Rider, which is a provision of an insurance policy that provides additional benefi ts at an additional cost). Sexual molestation coverage may seem out of place, but facilities that perform medical exams and those that offer services such as facials and massage are vulnerable to claims of inappropriate touching or contact. Protecting Your Providers and Employees Workers' compensation provides wage replacement and medical benefi ts to employees who are injured on the job. According to Jay Candelario of CHRS at Candelario Insurance Advisors, the benefi t of workers' comp cover- age is that it relinquishes the employee's right to sue his or her employer for the tort of negligence. Workers' comp is typically mandatory for all businesses that hire employees, but the requirements vary by state. So it is important to check with your state to make sure you understand your responsibilities—in some regions, even independent contractors need to be covered. Professional liability insurance, also known as errors and omissions (E&O;) insurance, covers businesses that offer professional and personal services. For physicians this would include medical malpractice. Professional liabil- ity insurance protects you and your practice in the event that a patient or client is harmed as the result of a service or advice provided by your medical staff. Professional liability also covers services that fall outside the scope of medical malpractice, such as procedures performed outside of a physician's normal area of exper- tise and services provided by nonmedical personnel. When comparing liability coverage, pay attention to whether the policy is "Claims Made" or "Occurrence- Based." With an occurrence-based policy, coverage is based on when the procedure was performed, whether or not the policy is in place at the time of the claim. With claims made coverage, the claim and treatment that triggered the action need to happen during the policy period. For example, if a patient fi les a suit against your practice in January 2015 for an infection related to a laser treatment they received in July 2014, but you switched insurance companies in December 2014, you aren't covered for this claim and could be forced to pay out of your own pocket if you are found negligent. If you are switching from one claims made provider to another, you need Tail coverage. This covers claims from a previous policy. Laser insurance is primarily for medspas that offer procedures, such as laser hair removal, but not other medical procedures. The reason: Laser procedures are not typically covered under medspa business policies, says Ken Callison, president of insurance provider Allied Beauty Experts. License action reimbursement insurance can help pay penalties handed down by licensing boards governing your profession as well as defense costs to protect your license status. Regulations in the cosmetic medicine and medspa industries are constantly evolving. This will cover providers who unknowingly operate outside of the scope of their licenses. Facility and Equipment Protection Property coverage is essential. It covers your equipment, stock on hand and furniture in the event of fi re, vandalism and theft. Some carriers may limit the coverage for certain items, so make sure you understand the limits of cover- age. But the general rule of thumb is that if you can pick it up and walk out of the building with it, then it's covered. Commercial general liability protects your practice in the event of injury or damage to a third party resulting from your business operations. This would include things like slip-and-fall claims. Fire legal coverage is typically part of your commer- cial general liability policy. This is different from property insurance that covers your own equipment in the event 34 JULY/AUGUST 2015 | Med Esthetics ARE YOU COVERED? © GETTY IMAGES If you are switching from one claims made provider to another, you need Tail coverage.