The way business insurance can cover medical expenses depends on who needs the care: Are they a guest, an employee or are you looking to protect yourself?
How General Liability may help with medical costs
A standard general liability insurance policy usually includes medical payments coverage. But this coverage could only help for non-employees who accidentally get hurt while visiting or interacting with your business.
General liability policies can usually only cover bodily injury for visitors, customers, and others who visit your workplace.
For example, suppose a client visiting your office trips, breaking a leg. The medical payments coverage in a general liability policy might reimburse the client for the doctor visit, plus the X-ray to diagnose the break and the cast to treat it (up to your policy limit) since the accident happened at your business.**
How Workers’ Compensation insurance could cover medical expenses
If an employee is hurt on the job, your workers’ compensation coverage may kick in to help cover costs. Most states require you to carry this coverage if you have employees.
Say one of your employees develops carpal tunnel from long days at the computer. Your workers’ comp policy could cover their doctor visit, medical brace and ongoing physical therapy.**
Small business insurance that helps pay for medical expenses like these, whether for a client or an employee, can save you thousands of dollars in out-of-pocket costs. Coverage depends on many variables, so it’s important to review your policy details for specifics.
Can business insurance cover medical fees for business owners?
You can’t use your business insurance to pay for your own regular doctor visits or medications – that’s what your personal health insurance is for.
Business insurance coverage for business owners, an add-on to your employee workers’ compensation policy, could help you cover medical expenses for yourself after a covered event or accident at work.
10 examples of medical expenses that could be covered by business insurance
Business insurance can cover a wide range of medical costs that spring up after a work-related accident or illness. The key is that these costs must be reasonable and medically necessary. (Insurance isn’t likely to cover cosmetic treatments, for example.)
Below are 10 medical expenses that may be covered by workers’ comp or the medical payments coverage in a general liability policy:
- Doctor visits, such as general practitioners, specialists and chiropractors.
- Ambulance transportation to the hospital.
- Diagnostic tests like scans and X-rays.
- Medical treatments and procedures, such as setting a broken bone.
- Surgery, including supplies and anesthesia.
- Hospital stays, although private rooms aren’t necessarily included.
- Rehabilitation and physical therapy.
- Lab services and bloodwork.
- Medical and orthopedic equipment, such as crutches or a brace.
- Medications, both prescription and over-the-counter, as appropriate.
If you haven’t signed up for business insurance yet, general liability and worker’s compensation could be an asset to help protect your business from the cost of medical expenses and other important protections up to the policy limit.
