Going Solo: Insurance Essentials for Physicians Starting Their Own Practice

In an era when many physicians are joining large hospital systems or group practices, choosing to start your own independent practice is both bold and admirable. It allows you to build something that reflects your own values and approach to patient care.  It also comes with new responsibilities, including making sure your practice is properly insured.

Here are the key types of insurance coverage to consider as you establish your practice in New York State:

1. Business Owners Policy (BOP)
Most landlords will require this coverage before you sign a lease. A Business Owners Policy combines property insurance (to protect your office equipment, furnishings, and medical supplies) with general liability insurance (to protect your practice against claims such as slip-and-fall injuries). It’s the foundation of your practice’s insurance plan.

2. Workers’ Compensation and NYS Disability Benefits Law (DBL)/Paid Family Leave (PFL)
If you hire any employees, you are legally required to provide Workers’ Compensation coverage for on-the-job injuries and DBL/PFL coverage for off-the-job injuries, illness, or family leave. These are state-mandated coverages, and your practice can be fined if you don’t have them in place when you should.

3. Cyber Insurance
Even small medical practices are targets for cyberattacks and data breaches. Cyber insurance helps protect your practice against the costs of a breach, ransomware attack, or other cybercrime event, and can cover expenses such as data recovery, patient notification, and expert IT and legal advice.

4. Personal Disability Insurance
Your practice depends on you. If an illness or injury prevents you from working, personal disability income insurance can help replace your lost income — allowing you to continue meeting your personal obligations while you recover.  You should also consider business overhead insurance, which is another form of disability insurance.  It helps cover your overhead expenses while you’re recovering from a disability, helping you keep your practice running while avoiding draining your own personal assets and income.

Starting your own practice is a significant and rewarding step. Taking the time to set up the right insurance protection at the beginning can help ensure your practice’s long-term stability and success.  Please contact us for a review of your options – our experienced representatives have helped many physicians launching their own practices.