If you’re interested in launching a healthcare business, you’ll need to know which types of insurance to take out before you get started. Signing up for the right policies will give you peace of mind, as well as financial protection, so it’s vital you do your research. Keep reading for more information on healthcare business insurance.
If you’re compassionate and want to make a difference to people’s lives, starting a health care business could be the right move for you. According to Health Europa, the combined healthcare industries contribute £70 billion per year to the UK economy. They’ll always be in demand, so they’re a great option for entrepreneurs who are looking for a recession-proof sector to join.
The insurance policies you’ll need as the owner of a healthcare business will vary depending on the work you do. The medical sector is diverse and you’ll need different protection according to the activities you carry out on a day-to-day basis. For example, you might be providing foot care to the elderly, running a website giving medical advice, managing a care home or even operating a weight loss group.
As you can imagine, each type of organisation will have varied risks and need specific forms of protection.
5 main types of healthcare business insurance
You’ll need to do research on your specific healthcare sub-sector, but there are some forms of cover you’re likely to need, no matter the type of business you run. Depending on the provider you use, you may be able to buy these policies separately or invest in a combined plan. The best way to get a great deal for your company is to do your research.
Here are five insurance policies you’ll almost definitely need before your healthcare business gets up and running:
1. Public liability insurance
You and your staff will probably be working closely with your customers and be responsible for their wellbeing, so there’s a chance disgruntled clients may raise claims against your business. Public liability insurance covers the cost of any legal fees and compensation claims made against you, including injury or damage claims.
2. Employers’ liability insurance
If one of your employees suffers an injury or illness as a result of working for you, this policy will cover their compensation claims. According to the law, you must take out employers’ liability insurance, and you could be fined £2,500 for every day you run your healthcare business without it.
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3. Professional indemnity insurance
From time to time, a customer might be unhappy with the standard of your work and claim your service is inadequate. Professional indemnity insurance protects your healthcare business against claims surrounding medical malpractice, negligence or other civil issues. Usually, this type of cover is a legal requirement for healthcare businesses.
4. Business equipment insurance
Depending on the type of business you run, you might need to use a fair amount of expensive equipment and store it in your premises. If this is the case, it’s a good idea to get business equipment insurance, which will give you financial protection should your apparatus be damaged or stolen. If you take out this policy, you can rest assured you’ll be able to quickly repair or replace vital tools and get back to work without losing money.
5. Medical malpractice cover
This type of insurance has similarities to professional indemnity insurance. It covers protection against negligence where a treatment is performed below the accepted standard of practice, resulting in injury or death. Most cases involve some sort of medical error, so it’s a good idea to invest in this insurance policy if you want to be protected against malpractice claims.
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Examples of other healthcare business insurance policies
As we’ve mentioned, the policies you’ll take out will depend on the type of healthcare business you run. As an example of how protection can differ, you can look at the products offered by insurance providers.
For instance, Towergate Insurance covers businesses across the medical industry, including chiropodists, dental practices, domiciliary care providers, massage therapists, opticians, physiotherapists and nutritional therapists. Here are a couple of examples of the policies provided for different businesses:
- The nutritional therapist insurance includes worldwide cover; public liability, product liability and professional indemnity; representation at a defence hearing and public relations consultancy fees.
- The chiropodist insurance includes comprehensive liability coverage, cover to work anywhere across the globe and a 24-hour legal helpline.
To find out more about insurance policies for other healthcare businesses, head to Towergate Insurance’s website.
What else do I need to consider?
1. Get your qualifications
Of course, it’s difficult to say which qualifications you’ll need to start a healthcare business, as there are many different ones out there. But, to give you an idea, we’ve provided a run-down of the certificates you’ll need to launch a care agency. The registered manager will need to have one of the following:
- QCF Level 5 Diploma in Leadership for Health and Social Care (either in Management of Adult Services or Management of Adult Residential Services)
- NVQ Level 4 in Leadership and Management for Care Services
- Registered Manager’s Award (RMA)
Note: The last two courses aren’t run anymore but the qualifications are still valid if you already hold them.
2. Register with the CQC
Before you consider insurance, you’ll need to make sure you register your healthcare business with the CQC. This is required by law under the Health and Social Care Act; you must register your business and the registered manager of your practice. This can be a long process, so make sure to give yourself plenty of time for it to go through.
The registration will involve applying for a DBS (Disclosure Barring Service) check to make sure you’re legally allowed to work with vulnerable adults and children. You’ll also have to provide references from your previous employers and your GP. And it’s essential you provide a statement of purpose describing your business in detail.
Find out more about starting a healthcare business
If you’re interested in launching a business in the medical sector, you might want to consider investing in a franchise. Putting your money into a recognised brand will give you financial security and business support whenever you need it. See our article, How to Start Your Own Healthcare Franchise, for more information on getting started, or browse our healthcare franchise opportunities to find your perfect venture.
Alice Tuffery, Point Franchise ©