Medical Billing Forum

Starting a Medical Billing Business => Starting Your Own Medical Billing Business => Topic started by: blhoffman on April 02, 2010, 12:00:17 AM

Title: E & O Insurance?
Post by: blhoffman on April 02, 2010, 12:00:17 AM
I've been looking at the suggested website www.naplia.com  and I have a few questions about the•Professional Liability for Specified Professions App .

1. If you are a start up and have no clients how do you answer the below questions?

12a. Client Name? (How would I know this when filling out the form if I do not have clients yet?)

12b. Applicant's relationship to client?

13b. Services Rendered?

13c. How long do you expect this relationship to continue?

There are many other questions that are along this line, so what does a brand new startup write in with no clients?  ???

Brenda
Title: Re: E & O Insurance?
Post by: MBP on April 02, 2010, 08:37:22 PM
Brenda, i dont know the answers to your questions, hope someone else does, because i need to go through this too. my question is, how much do you pay for this? i guess it is good to wait until i get the first client to start paying for it?
Title: Re: E & O Insurance?
Post by: blhoffman on April 02, 2010, 10:47:45 PM
Sorry, I just thought of a few more questions. Please, if anyone has the answer to these questions don't forget my original questions listed above. Thanks.

1. Because it is asking for a client and the services I am offering...what happens if I take on more then one client?

2. Does that mean I fill out another application for more insurance on another client and do it all again?

3. Do I call the insurer and tell them I signed on more clients and they just add it to my original application and up the price?

I'm really confused about how the E&O insurance works.
Title: Re: E & O Insurance?
Post by: PMRNC on April 03, 2010, 01:17:50 PM
The broker should be able to answer all of those questions and if they can't, you should look for a company that will. Generally insurance is there as a precaution, the reason the application is specific is probably because they are going to give you multiple line quotes, just answer honestly, if you have no clients say none. The rate generally for E/O does not change with the addition of clients, but rather the addition of higher value. Start off with $1Mil policy, the standard is $3 Million but if you are just starting out with no clients or one or two, you can go the minimum.. remember that the insurance is a precaution for Errors & Omissions, keep up with compliance, make sure you have a compliance plan to adhere to at all times and you should never need to file a claim :) :)

As for your other questions such as services rendered, you should know already what services you will be providing your client, that's a must when applying for any type of liability insurance, just have a complete list of services your company can/will and might be providing.
Title: Re: E & O Insurance?
Post by: blhoffman on April 04, 2010, 01:00:22 AM
Thank you. That was very helpful. I plan to call after work on Monday to ask some questions.
Title: Re: E & O Insurance?
Post by: blhoffman on April 09, 2010, 08:41:55 AM
I did one of those quotes in 24 hour deals with another company to see what they came back with and it was $3000 - $4000 premium. This was with me saying no clients and at $1,000,000. WOW! Definitely not interested. I will still check with the original company I listed when I am ready. I was just feeling out some others. Hope I get a better price when I'm actually ready for it.  :o
Title: Re: E & O Insurance?
Post by: PMRNC on April 09, 2010, 03:26:00 PM
I'm sorry to say but that quote is not so far off on the average. From what I understand Naplia takes your application and they GET the quotes from a few companies for you to decide which you want. I pay $2260 and that's not dependent on how many clients I have, and it's with a discount from my homeowners carrier.
Title: Re: E & O Insurance?
Post by: blhoffman on April 09, 2010, 03:51:34 PM
Do I need it right away? I know it is best practice, but can it wait until I have the money or do I need it before I take on a client? Thanks.
Title: Re: E & O Insurance?
Post by: PMRNC on April 09, 2010, 04:10:38 PM
That's sort of a yes/no answer.. Yes, technically you can wait because you obviously don't have any liability with no clients, you could however begin to get your quotes so you can line up a policy as soon as you land the first client.