Insurance

5 Types of Insurance Doctors Need

Insurance Doctors

What’s the most important type of insurance you think a physician needs? 

If you’re like most people, your first thought was malpractice coverage, which is definitely an essential policy. But a doctor’s career is full of complexities, and each one has its possible dangers.

Those with their own medical practices have even more reason to protect themselves with insurance coverage.

No matter what part of the healthcare industry you’re in, you should have these five essential insurance policies in your name if you’re a doctor.

1. Professional Liability

This type of coverage goes by multiple names. Professional liability, indemnity, errors and omissions, or malpractice; it’s all the same thing.

The official term is professional liability coverage. Ultimately, it’s one of the most important policies you can possess in the medical field. 

If you get sued for negligence, this insurance protects your practice and business assets from total liability. Although the odds are in your favor that you’ll win the case if there’s weak evidence, you don’t want to deal with the costs and hassle of hiring attorneys to fight the claims.

Your professional liability policy covers some or all of the costs of your legal defense and any subsequent settlements. Since this can run into six figures, it’s worth the premium rates.

2. General Liability

Also known as property insurance, general liability coverage kicks in when someone or something gets damaged in your care.

For example, a patient didn’t see the “wet floor” sign in your lobby and slipped. Their medical expenses could be your responsibility.

Or, a natural disaster occurred, and it destroyed your office equipment. As long as the catastrophe or equipment wasn’t specifically excluded, the general liability coverage can replace it all.

3. Health Coverage

As a doctor, you see firsthand the struggles of being sick and affording healthcare. 

Sure, you can treat your sniffles and general aches and pains with your medical knowledge. But what happens when your illness or condition becomes too much, and you need to see a specialist?

Healthcare coverage limits the need to dig into your savings account to cover these expenses. 

Opt for a higher deductible or copay if you’re trying to keep costs down, but don’t skip the coverage altogether. You’ll be glad you had it if you ever have a severe medical problem.

4. Disability Insurance

We like to see ourselves as indestructible. As someone on the frontlines, you know that isn’t true.

What’s your plan to keep your family financially secure if you can’t provide for them for a few weeks or longer? 

Disability insurance can step in and save the day (and your peace of mind). 

A short-term policy gives you, on average, 60% of your regular income for those minor injuries or illnesses that keep you from working. Long-term policies offer coverage for more serious conditions and some policies remain effective until you’re 65.

5. Life Insurance

No one wants to think about the fact that they’re mortal. If you want to protect your loved ones financially when you’re gone, this is a topic you’ll have to tackle head-on.

A savings nest egg helps. But life insurance keeps your family from using their inheritance to cover your funeral and other expenses.

Term Vs. Whole Life Policies

There are two types of life insurance you can invest in. The first is called term insurance, and as it implies, it’s valid for a set period of time (the term). 

The premiums are based on the underwriter’s mathematical odds that you’ll survive that term. So if you’re healthy, the rates are usually low. 

Whole insurance, the other type of coverage, operates on a different underwriting technique and can be pricey.

Term insurance is popular for physicians who want to make sure their families aren’t going to feel too much economic loss when they’re gone. It makes sense to have term insurance if you have a mortgage, kids in school or college, or a lot of debt.

Whole insurance, on the other hand, is lifetime coverage. It’s beneficial for people who want to pay one set premium for their whole life instead of a higher rate when they get older. 

Whole insurance has other advantages, as well. Whichever type of coverage fits your needs is fine, but you should have one or the other.


Conclusion

Insurance coverage is everywhere, and you can find a policy for just about anything you want to protect. As a physician, there’s no shortage of companies that will offer you their insurance as a must-have. 

While you’re making your financial plans, though, these are the five policies that truly are critical to your career.

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