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No plan is ever safe. We all know that. You can come up with the best plan and a lot more backup plans – well, we all know plan B was always in the picture, and that is a given, isn’t it? This is when insurance comes into the picture. Since uncertainties always come along with plans for the future, this is why we need some sort of security. This is exactly when insurance comes in for every individual dealing with that hardship. But general insurance and a liability insurance policy are completely different from each other.

General Insurance Policies – It reimburses the policyholder.

Liability Insurance Policies – It reimburses the third party who has been affected by the policyholder.

So, here let us take a look at liability health insurance policies and things you must know about it.

What is Liability Insurance in Healthcare?

The term liability insurance means insurance products that give insured parties protection against claims that are from injuries and damage to other people or property. Liability insurance policies will cover any legal costs and payouts an insured person is responsible for if they are found to be legally liable. Intentional damage and contractual liabilities are usually not covered in these liability insurance policies. Liability insurance is not like other insurances. They pay third parties and not the ones who hold the policies.

How Does Liability Insurance Work?

This insurance is usually critical for those who are actually liable and at fault for injuries that are sustained by other people or third parties. Such insurance is also called third-party insurance. It does not cover intentional or criminal acts even if the insured party is found legally responsible for it. These policies are taken out by anyone who owns a business, who drives a car, who practices medicine, or basically anyone who can be sued for damages or injuries. They also protect both the insured and third parties who may be injured as a result of the holder’s unintentional negligence.

Components of Liability Insurance You Need to Know Before you Buy a Plan

An FIR: A third party must always register a complaint at the nearest police station. This is an important document that is based on the insurance company and will verify other details, and the insurance claim will then be processed.

A Coverage: Usually, there will not be a fixed coverage for the policy. The insurance company will then make the payment to the third party according to the terms and conditions.

Documents Submission: The third party should also submit documents that are required by the insurance company. These documents must include the original FIR too.

Also Read: All You Need to Know about Health Insurance

Here are Some Major Things you Must Know About Liability Health Insurance Policies

– What is Covered in this Plan?

Well, when you buy a Liability Health Insurance Policy, the first thing you need to jot down is what is covered in the plan. You should always be aware of the coverage it offers. A standard liability insurance plan will usually cover:

  • Death of the third party
  • Injuries
  • Disabilities
  • And Property Damage

– What isn’t covered in the Plan?

It is also important that you know what are the things that would not come under the plan you buy so you do not misconstrue your plan. It usually does not cover:

  • Own property damage
  • Non-compliant third party claim
  • Lack of FIR

– When the Claim Should be Filed?

The third party should also be aware of the location and the party to be approached while making the insurance claim.

Regardless of how careful you can be, some things just happen, don’t they? This is true, especially when it comes to healthcare professionals; it is a big deal. They deal with the most critical aspects of life but are also somehow more subject to risks.

Different Types of Liability Insurance for Healthcare Providers

Patient and Visitor Injury Plan: If a patient or delivery person slips and falls at your clinic, you might be held liable. If the injured party sues, you may be forced to pay for medical bills as well as the cost of hiring a lawyer. Well, in this case, the plan can play security.

Patient and Visitor Property Damage Plan: Your dietitian business, radiology lab, or another healthcare firm may be required to handle the property of patients and visitors. If an item is misplaced or destroyed, your practice may be held responsible. So the plan can play a part in the repair of the damaged item, replacement, and legal fees of the lawsuit.

An Advertising Injury: It is easy to accidentally duplicate a competitor’s slogan or mimic another advertising campaign when advertising your healthcare firm and its services. These accidents are covered by the plan too.

Conclusion

While general liability insurance protects against many typical hazards, it does not give comprehensive coverage. Employee injury or property damage can occur at any medical practice. Uncertainties are a given at any business or profession, and liability insurance policies can definitely play the best security when it comes to these unseen risks.

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