Running a medical practice means juggling more than just patient care. Behind every successful clinic, urgent care, or specialist office lies a complex web of risks, from regulatory compliance and data privacy to malpractice exposure and property loss. As both a licensed insurance professional and a medical doctor, I’ve seen firsthand how overlooked coverage gaps can leave even the most diligent practices vulnerable.
Whether you operate a solo practice or manage a large group, there are several core types of insurance every healthcare organization should carry and understand.
1. Professional Liability (Medical Malpractice Insurance)
This is the foundation of every healthcare provider’s risk management plan. Malpractice insurance protects you against claims of negligence, errors, or omissions in patient care. But not all malpractice policies are created equal, especially when it comes to tail coverage, consent-to-settle clauses, and coverage for locum tenens physicians.
Understanding your policy structure,claims-made vs. occurrence-based, is critical. I’ve seen physicians switch carriers or retire without realizing that an expired claims-made policy can leave years of work exposed.
2. General Liability Insurance
Think of this as your “slip and fall” coverage. It protects your practice if a patient or visitor suffers bodily injury or property damage on your premises. It also covers legal defense costs, which can be substantial even for small claims.
A comprehensive general liability policy should align closely with your property and professional policies to eliminate gray areas between them.
3. Property and Equipment Coverage
Medical offices depend heavily on specialized equipment like X-ray machines, diagnostic tools, electronic records servers, and more. Replacing them after fire, theft, or water damage can cost hundreds of thousands of dollars.
Look for policies that include equipment breakdown coverageand business interruption insurance, so your practice stays afloat financially even if a covered loss forces you to close temporarily.
4. Cyber Liability and Data Breach Coverage
The rise of electronic health records has brought tremendous efficiency but also significant exposure. Medical practices are prime targets for cyberattacks and ransomware due to the sensitive data they store.
Cyber liability insurance helps cover forensic recovery, legal notifications, patient credit monitoring, and regulatory finesunder HIPAA. From my dual perspective in medicine and insurance, this is one area where too many healthcare providers remain under protected.
5. Workers’ Compensation and Employment Practices Liability (EPLI)
Every practice with employees needs workers’ comp but EPLI is often overlooked. It covers claims like discrimination, wrongful termination, or harassment from employees or job applicants.
In today’s regulatory climate, where HR compliance is more complex than ever, EPLI coverage can protect your reputation and financial stability as much as malpractice insurance.
6. Umbrella Liability Coverage
Finally, an umbrella policy provides an extra layer of protection over your existing liability policies. It’s a cost-effective safeguard that can make the difference between a manageable claim and one that threatens the long-term viability of your practice.
Bringing the Medical and Risk Management Worlds Together
My background in both medicine and insurance gives me a unique appreciation for how physicians think and where they’re often caught off guard by risk exposure. Too often, busy practitioners rely on generic insurance packages that fail to reflect the realities of clinical operations, patient flow, or staff responsibilities.
At Mt. Franklin Insurance, we work to bridge that gap by translating medical workflows into tailored coverage strategies that protect not only the practice but also the people who make it possible.
Because at the end of the day, doctors shouldn’t have to diagnose their own risk.
