Insurance and Risk Management for Physicians
Understandingthe concept of risk management and insurance has become quite crucial for physicians these days as they need to protect their rights and receivables whilst entering or leaving a particular practice.
And, with a variety of insurance and risk management options to choose from, the task becomes even more difficult as it is.
Using Adept Financial Experts and Insurance Companies
Thesubject of insurance has developed into something quite complex, particularly in the field of medicine. Maintaining the services of a skilled financial planner or insurance broker has also become an essential task. Brokers that suggest excessive insuring of the practice are to be avoided at all times. Plus, a potential insurer’s financial stability should also be investigated. Ratings, along with statistical information on property, life, and carriers of insurance casualty are provided by the A.M. Best Company. The categorization of rating ranges between A+, A (Excellent) and C (Fair). It is generally advised that thephysicians should opt for carriers that have been rated ‘A’ and nothingless.
Coverage of Insurance
Following is the list of coverage provided through insurance that physicians must think about:
- Unemployment insurance – a mandatory coverage that provides payments to physicians who are no longer in practice.
- Workforcecompensation – a mandatory coverage that applies to the disability, illness, or death expenses that occur whilst working.
- Insurancefor business interruption – reimbursements are made to the physicians through insurance in the event of equipment and office damage.
- Comprehensive,burglary, fire, and theft insurance – code coverage insurance should beobtained for protecting the home/office structure along with the alternate value of equipment and furniture.
- Health insurance – these include three types of protection i.e. standard medical, hospital, and surgical expense coverage.
- Automobileliability – sufficient automobile coverage should be provided to the physician with bodily injury plus asset damage liability.
- Life insurance – these include contracts of term, whole life, variable life, single-premium, and universal life insurance.
- Employee fidelity bonds – used for the verification of employee honesty.
- Professional liability – this coverage provides the physician with protection from malpractice medical suits.
- Disability insurance – includes coverage for sudden disability occurring within practice.
- Umbrella Insurance – umbrella or excess liability insurance provides protection of liability from difficult policies.
Forproper insurance of a practice, the practitioner may review the risk exposure of a physician before providing him or her with assistance in choosing the right type of coverage. Reviewing the extent of exposure will determine what kind of policy should be taken up by the physician and which ones should be avoided.
Other Protection Strategies for Assets
Thetop most strategy used for asset protection should be the liability insurance. Other strategies include the placing of all assets within a lawful structure. This will help the physician’s assets remain untouchedby creditors and litigants. Adept retirement plans, homestead exemption, asset transfers, limited partnerships and trusts, are a few of the protection strategies that are rather controversial.
Carefuldeliberation over insurance and risk management should be undertaken byboth the physician and the practices in order to avert losses pertaining to health, finance, and other assets.