Medical Billing

Do You Have Professional Liability Insurance For Medical Billing?

This article will teach about professional Liability Insurance, its importance, and the services covered. We will also discuss the premium cost medical professionals and billers pay to enjoy its privileges.

Due to the last few years, the healthcare and medical fields have come out as the most proactive fields of all; this is clearly shown by the much-increased regulation and supervision needed to ensure quality in the provision of services. They have caused a radical reassessment of the medical practitioners, hospitals, health funds, and other organizations that have become exposed to the healthcare system.

This leaves medical professional liability insurance as a package deal essential for malpractice lawsuits that can occur to any doctor or medical billing provider. In addition, the growing variety of healthcare industries has generated a high demand for this coverage among the new categories, including ACOs, AHCs, and medical billing firms.

What is professional liability insurance?

Liability Insurance

Professional errors and omissions insurance, also known as E&O, is an essential part of the protection system for business operators. It serves as a diplomat in situations where you are responsible for the deficiencies and render professional services that clients or customers might not be satisfied with. Contrary to being the best persons in their opinions, professionals are not free from the possibility of committing errors.

When a client thinks that any mistakes that may have been associated with the services provided have brought about a loss, then they can file a lawsuit. Often, these errors or omissions can have severe impacts on patients. In these circumstances, professional liability insurance comes in to help mitigate damages through financial protection and legal support.

Who needs professional liability insurance?

Professional liability protections are a must-have for any business offering professional services. This coverage is particularly crucial for companies in the following industries: This coverage is particularly essential for businesses in the following sectors:

  • Consulting
  • Accounting and Auditing
  • Advertising Agencies
  • Architecture and Engineering
  • Graphic Design
  • Insurance Professionals
  • Interior Design
  • IT and Tech Professionals
  • Market Research
  • Real Estate
  • Medical Professionals
  • Medical Billing Professionals

Professional liability insurance coverage helps clients avoid being sued in a service-based business. Clients might request proper credentials as evidence of your insurance policy before you start working with them. Also, independent workers may need coverage indicating their compliance with insurance required by law to secure contracts. Medical billing providers who have successfully passed the medical credentialing phase can also get this insurance.

How much does professional liability insurance cost?

The premiums for professional liability insurance may change a lot and depend on what type of business you have, the level of coverage needed, the size of the company, and the industry in general. The amount spent on professional liability insurance among healthcare professionals is usually costly. It costs up to 98$ monthly. It can cost up to a couple of hundred or even more than that yearly. Such cost seems pretty cheap compared to the financial problems (lawsuits and claims) that may arise.

What does professional liability insurance safeguard against?

Professional liability insurance for medical billing is crucial for your business from different claims. Here’s how it can help:

1. Professional errors and omissions

If your client has faced harm or losses due to your mistakes and errors, this insurance will protect you from financial loss and penalties. Let’s take another example: your invoicing software may have incorrectly processed the claim, so now the client will be at a loss due to a delay in payment or claim rejection. Now, they might stand against you for the financial consequences. Professional liability insurance is designed to assist the insurer in covering all costs associated with these claims, such as legal fees, settlements, and damages.

2. Misrepresentation

Claims can be made by a client who proved that false or misleading information caused them to contract your services, laying the foundation for damages; therefore, your insurance policy can cover your legal fees and settlements.

For example, suppose the billing and professional of your company misrepresented its knowledge and skill or failed to achieve that, and that is the case of the client who later choose your services over one of the qualified competitors. In that case, you can be assured that none of the financial consequences are in your hands as the insurance can protect you from the damages that might be possible in such a case.

3. Inaccurate guidance and recommendations

This aspect of professional liability insurance is to remedy the situations where the client claims that your advice was wrong or that the service they got from you caused them harm. A case in point is when your organization provides incorrect data to the health care provider. These denote the reimbursement or the penalties for which your company is sued. Frequently, this can also involve instances when your client’s billing company chooses not to adhere to the rules and regulations and, in turn, receives punishing actions or penalties.

4. Harmful statements

If just anyone goes on a defamation case on your business, whether the claims are factual or not, you can counter them legally by seeking the help of your insurance, which covers the legal costs of defending against such claims.

Another example would be clients alleging that your billing company made fraudulent statements about their financial activities, leading to the company’s bad reputation. Your insurance policy will be the one that will cover the costs of the defense of these charges. This coverage may also be used when the billing association is reported to face privacy invasion charges.

5. Copyright violation

It’s important to note that the legal expenses insurance also includes when a third party holds you responsible for using their copyrighted material without receiving the proper authorization.

Considering IP infringement as an example, it can be mentioned that the billing company you are cooperating with may use a copyrighted image or wording in its marketing materials without permission, and as a result, the IP copying can be a reason for claims, and the insurance can then pay for the expenses related to such claims.

6. Legal defense expenses

The cost to fight a claim against you, including hiring lawyers and other legal help, can be fully covered by professional liability insurance, even if you are sure you are not guilty. Such a range of insurance may be especially worth staying, considering the claims filed against the company. It can enable you to be safe from financial collapse and maintain a solid reputation.

Conclusion

Ultimately, insurance covering professional liability for medical billing providers is imperative due to the growing complexity of recent healthcare. It is a type of professional liability insurance that may be referred to as E&O (errors and omissions), which serves as a safeguard against claims of mistakes, wrong statements, misadvice, etc. personal injury, copyright infringement, and even defense costs. Above all, medical professionals and billers should undergo a medical credentialing process also to avoid errors and claims against the company.

Professional liability insurance protects billing providers through financial compensation and mental reassurance. It is not only protection, but over and above that, it is an element of confidence building. Therefore, clients can trust and remain loyal. With the healthcare industry becoming more sophisticated, the money is coming into the hands of the insurance holders, and the insurance companies must keep their interests on the climb