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The Types of Insurance That Hospitals Carry

Hospitals must carry insurance policies that are similar to the policies carried by every other business with employees in the United States. The total values of these policies, along with additional liability insurance coverages, may be substantially higher than other industries, given the history of juries awarding massive payouts to patients that have been injured through medical malpractice.

  1. Worker's Compensation Insurance

    • Hospitals are employers and as such are required to carry worker's compensation insurance to do business in any given state in the country. This insurance protects all levels of employees from doctors to janitors, to ensure that those injured on the job receive proper treatment for injuries. Working in a hospital provides convenience for medical treatment but also presents hazards uncommon in other industries. Drug resistant infections and blood-borne diseases are a constant concern for hospital employees and the hospital itself, whose worker's compensation rates can rise dramatically with employee accident rates.

    Medical Liability Insurance

    • Medical liability insurance protects the hospital in instances of lawsuits involving malpractice, equipment failure or other circumstances where the hospital could be ruled negligent. This insurance type is required by many states across the country in varying amounts. In Pennsylvania, hospitals and doctors are forced to carry nearly $1,000,000 policies in malpractice insurance to remain in operation. As a result, many states, like Pennsylvania, do not allow doctors, with no malpractice insurance or insufficient insurance, to see patients or perform procedures on hospital property. Malpractice insurance will cover payouts made to patients in the event of injury to a patient where the hospital is ruled to be at fault.

    Unemployment and Disability Insurance

    • Hospitals are also required to carry unemployment and disability insurance as a business with employees. These insurance types cover workers that have been laid off without fault and those that have been permanently disabled on the job, beyond the ability of worker's compensation to cover the costs. For example, workers permanently disabled through an on-the-job injury or permanent infection are covered by the hospital's disability insurance, since the worker will never be eligible to return to work in his former capacity, and must be compensated yearly.

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