Medical Billing Forum

Starting a Medical Billing Business => Starting Your Own Medical Billing Business => Topic started by: Christy on January 16, 2013, 04:00:45 PM

Title: E & O Ins
Post by: Christy on January 16, 2013, 04:00:45 PM
Just curious, how much is normal to pay for business liability (E&O) ins?


thanks!
Title: Re: E & O Ins
Post by: PMRNC on January 16, 2013, 05:02:43 PM
I pay $1977 for 3 mil.   It's going to vary state by state.
Title: Re: E & O Ins
Post by: QueenAlicia on January 16, 2013, 05:27:02 PM
Yes it varies, my plan is around the same and I am in CA.  I recommend getting it as soon as you get the first client. 
Title: Re: E & O Ins
Post by: Christy on January 16, 2013, 05:40:17 PM
and that rate is yearly, correct?  thanks!
Title: Re: E & O Ins
Post by: QueenAlicia on January 16, 2013, 05:49:56 PM
No, every 6 months.  In a way it is like car insurance, it renews every 6 months. 
Title: Re: E & O Ins
Post by: Christy on January 17, 2013, 09:06:20 AM
thank you, ladies!   I just got off the phone with the ins rep and she mentioned "cyber liability..." do you have this to protect against PHI becoming breached over the internet?

thanks!
Title: Re: E & O Ins
Post by: PMRNC on January 17, 2013, 09:33:48 AM
Quote
thank you, ladies!   I just got off the phone with the ins rep and she mentioned "cyber liability..." do you have this to protect against PHI becoming breached over the internet?

Don't waste your money. In our business you are required to use ALL of the very top levels of security offered, Your breaches and what you do about them come from your compliance plan. As long as you have a good compliance plan in place with steps to protect you and updated to reflect the addition of HITECH  which added penalties to even business associates of covered entities (that would be us) and notification process of breaches.     Your general E/O, Quai Tam, or business liability should blanket cover you.  Do not make the mistake of thinking E/O or ANY other insurance releases you of liability, it's there to assist with legal fees.  It's also like other policies where it excludes certain things like the obvious, fraud/abuse, and even cases where federal or state regs say "YOU should have known", and of course pre-existing conditions/situations.   I have a good friend of mine who owned a collection and billing company and one of her employee's was pocketing money and her liability did not cover her or protect her, she ended up losing her surety bond and that led to her having to close her business.
Title: Re: E & O Ins
Post by: Christy on January 17, 2013, 10:50:35 AM
thank you, Linda...I will see what the ins rep comes up with in terms of coverage...my main concerns are lawsuit from provider or patient.....and breach of info (cyber or not)

what is more likely to get you in trouble:

the breach itself?  or the lack of notification procedures?

If I breached and did everything to the letter regarding notification, etc....could I still get in trouble? less trouble?
Title: Re: E & O Ins
Post by: PMRNC on January 17, 2013, 01:35:50 PM
Quote
what is more likely to get you in trouble:

the breach itself?  or the lack of notification procedures?

If I breached and did everything to the letter regarding notification, etc....could I still get in trouble? less trouble?

Keep in mind these are questions you want to verify with your attorney.   BOTH could land you in trouble. NOT doing anything with any breach of course is much worse. It is all according to HOW the breach occured.  For example, if you happen to talk to someone about someone elses PHI who does not have the "need to know" that certainly is a purposeful breach much worse than, say, a stolen laptop.  If your computer does NOT have login credentials for EACH user in accordance for their "need to know" THAT is a problem that can be corrected BEFORE a breach. A stolen laptop might not be as preventable.  So it really depends on the circumstances.  Again, this is all to be in your compliance plan. Stating said breaches and how YOUR company handles it on YOUR end.
Title: Re: E & O Ins
Post by: QueenAlicia on January 17, 2013, 05:27:11 PM
Linda, you have a good policy! I was looking at mine and I was like I need to upgrade it but the cost of mine for lower coverage is the same price that you are paying  :-\
Title: Re: E & O Ins
Post by: PMRNC on January 18, 2013, 11:11:48 AM
The standard and average is 3 Mil, but you could start out at 1 and re-evaluate later on. I don't want to say 3 million is excessive, in some ways I think it is, but this is the good ol US where legal fees are a BILLION dollar industry.
Title: Re: E & O Ins
Post by: QueenAlicia on January 18, 2013, 12:13:06 PM
yes, I started a 1 mil but for the same price.  I will be upgrading as I have seen a lot of growth the past few months and I will be looking for an office suite.
Title: Re: E & O Ins
Post by: PMRNC on January 18, 2013, 12:30:06 PM
Just a bit of advice. I seen a LOT of growth and I also do consulting (more so than billing) and I had an opportunity to obtain an office suite and did so for a little while. A complete waste really. Physicians just prefer you to come to them. Save the overhead if you possibly can. Of course if you can't have a secure location in your home then I guess you have no choice.   
Title: Re: E & O Ins
Post by: QueenAlicia on January 18, 2013, 12:35:21 PM
I'm going to be offering other services besides billing and consulting so I will be needing the office suite soon.
Title: Re: E & O Ins
Post by: Billergirlnyc on January 26, 2013, 01:26:45 PM
I'm so long-winded, the writer in me, eek.

I really wanted to ask this: There was a link to a insurance agency that you guys recommended. I wanted to get that link or info. Any help? I want to find a different insurance agency/company and would appreciate any suggestions/referrals, and if you want you can PM your name and I will let them know you referred me. Thanks in advance.
Title: Re: E & O Ins
Post by: Buglet10 on February 04, 2013, 10:57:09 AM
I am also wondering about obtaining insurance coverage as I'd like to take on more clients.  I currently have only one.  I live in Massachusetts any suggestions.  I have no idea about any of this coverage so any help would be welcome and appreciated. Thank you.
Title: Re: E & O Ins
Post by: PMRNC on February 04, 2013, 12:00:35 PM
I posted a link to a company who can provide you various quotes from insurer's.   www.naplia.com
Title: Re: E & O Ins
Post by: Buglet10 on February 05, 2013, 07:12:15 AM
Thanks for your help Linda.  But which kind of E&O do you use for medical billing.  Really not sure and there were a few listed on the site  Thanks.
Title: Re: E & O Ins
Post by: PMRNC on February 05, 2013, 11:39:31 AM
I found them AFTER I got my policy, I get mine through same company as I have my homeowners, and business insurance so I get a discount. I have total of 3 Mil coverage. It's standard Quai/Tam liability very similar to what a lawyer would have.   I started out with just 1 Mil in coverage and as I grew, and liability increased, naturally the coverage increased.  It's expensive but I do get to claim it on taxes so I get a break in that regards.
Title: Re: E & O Ins
Post by: Buglet10 on February 06, 2013, 05:46:13 PM
Thanks so much.
Title: Re: E & O Ins
Post by: Christy on June 20, 2013, 02:53:04 PM
http://foxpointprg.com/files/MPL%20E&O%20Category%20List.pdf

anyone ever use this company for E&O? 
Title: Re: E & O Ins
Post by: PMRNC on June 20, 2013, 07:57:55 PM
If you go to Naplia.com you can actually get various quotes :)    Also you should check with your home owners insurance company as they might offer it with a discount.
Title: Re: E & O Ins
Post by: Christy on June 21, 2013, 08:30:29 AM
I got this info through an agent....The agents I am speaking with are having a hard time coming up with quotes for this industry for some reason....So far I have been quoted between $3500-$5000 per year...I am just starting out and cannot swing that...  I did go to Naplia and was quoted insurance that did not include defense?!?!?! :o   so I decided to stick with local people for better communication purposes....
Title: Re: E & O Ins
Post by: Christy on June 21, 2013, 08:32:20 AM
oohhh and my homeowners is through my bank and boy are they useless with business ins!
Title: Re: E & O Ins
Post by: PMRNC on June 21, 2013, 09:44:15 AM
Quote
I got this info through an agent....The agents I am speaking with are having a hard time coming up with quotes for this industry for some reason....So far I have been quoted between $3500-$5000 per year...I am just starting out and cannot swing that...  I did go to Naplia and was quoted insurance that did not include defense?!?!?! :o   so I decided to stick with local people for better communication purposes....

They are not the carrier, more a broker and usually give you a few quotes, as for the defense, some include them but exclude punitive damages. Here's a good article that explains the types. http://www.insurancejournal.com/magazines/features/2004/07/19/44745.htm. (http://www.insurancejournal.com/magazines/features/2004/07/19/44745.htm.)     Make sure that if you find a company that meets your needs you have everything ready to go. They are in business of insurance so for our industry they will want a copy of a compliance plan, policies and procedures and any/all contracts you have.  When I was in NJ where I initially applied for my first E/O Policy, they denied me because my contract wasn't adequate and although I submitted a compliance plan, they wanted policies and procedures.
Title: Re: E & O Ins
Post by: Christy on June 21, 2013, 12:10:13 PM
thanks Linda! ;D