Lesson 103 - How to Purchase Insurance
The Different Ways to Purchase Commercial Insurance
Most commercial insurance products for the Healthcare industry cannot be purchased online and must be purchased using either a broker or direct-to-company. Here are the different types of insurance agents you can deal with to obtain commercial insurance for your healthcare practice.
Direct or Captive Appointed Agent - Works directly for the insurance company and only one insurance company. They have a duty to the insurance company and cannot sell products beyond what their company provides. This is a good option if you know with whom to place your insurance policy.
Indepedent Insurance Agent - Works with multiple insurance companies and has a duty to the insured (client). They can shop for quotes from multiple companies and provide insight into each policy. Often they are known as “Brokers” rather than “Agents”.
Insurance Application, Quoting & Binding
Once you decide which type of Insurance Agent to work with, there are a few steps that are universal in the insurance space. Here is the list of items you will need to provide for the different types of commercial insurance for healthcare providers.
For Medical Malpractice Insurance
An application and any supplemental applications for your specialty
Updated Curriculum Vitae
Loss Run or Claims History Reports (even if you have no claims)
For Commerical General Liability/Business Owners’ Policy
An application is required along with details about your building, business personal property, any commercial autos
In some cases, we may need claims history reports. This policy can also be packaged with a Medical Malpractice Insurance policy
For Cyber Liability Insurance
An application is required, along with revenue numbers and security controls in place
For Workers’ Compensation Insurance
An application is required and estimated/actual/forecasted payroll numbers for the policy period
Once you have completed the application, typically, an underwriter is assigned to your account. Depending on the type of insurance, some companies offer online quoting for insurance agents, allowing quick turnarounds. Other commercial lines of insurance such as Medical Professional Liability, Errors & Ommissions, and Commercial Crime may take longer to underwrite. Once you have a bindable quote, you typically have 30 days to decide and request binding of the coverage.
Updated 4/19/2023
