At some point, business insurance is worth the cost to your medical billing business. A few types of insurance to consider:
Errors and Omission Insurance (also E&O) is a business liability insurance for a mistake which causes financial harm to another. This type of insurance helps to protect medical billing companies from bearing the full cost of defense for lawsuits relating to an error or omission. This is a separate type of coverage from a standard general liability or property insurance policy. Many people in the industry feel that until you make over $1,000 per month this insurance isn’t worth it. If your client loses $100 because a claim wasn’t handled correctly you will probably want to cover that out of your own funds, even if you had the insurance. It becomes a different story if you are dealing with high dollar claims or you appear to have deep pockets.
E&O insurance can be a little expensive and sometimes difficult to get. If you become a member of the American Academy of Professional Coders (AAPC) you can get a good insurance for a fair price for you and your employees.
General liability may be needed if you are going on-site to a physicians insurance and will protect you if you should cause harm to another.
Property insurance may be needed if you have an office outside of your home. Factor in how many visitors will you be getting a day. If everything you do is off site, then you have virtually no exposure and buying insurance may be counter-productive.
If you have a home office, business equipment may be covered under your homeowners policy. Be sure to check that they even cover a home business, some won’t while some will and can be added as a rider to your home policy.
Bonding – While not insurance technically, this verifies solvency of your business and large practices typically require it. Should you go out of business or steal from the client, the bonding company pays the amount back to the client. You can get this through the same company you get all of your other general insurance such as workman’s comp, liability, etc.