What Kind of Insurance Do You Need For a Non-Emergency Medical Transportation (NEMT) Business?

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Starting a non-emergency medical transportation (NEMT) business can be a lucrative endeavor, but it’s important to make sure you have the proper insurance in place. There are a few different types of insurance that are essential for NEMT businesses, and we’ll go over them in this article. 

 

Non-Emergency Medical Transportation Business Insurance Policy Options & Cost

The four most common types of insurance for non-emergency medical transportation businesses are general liability, commercial property, workers’ compensation, and business income.

  1. General liability insurance, which protects you from lawsuits arising from injuries or property damage that occurs as a result of your business activities. General liability insurance can also help protect your non-emergency medical transportation business’ assets in the event of a lawsuit. Typical costs are $500 to $1,000 per year for a small non-emergency medical transportation business, and $2,500 to $5,000 per year for a larger business.
  2. Commercial property insurance, which can help reimburse you for lost or damaged property caused by fire, theft, or other covered events. Typical costs are $1,000 to $2,500 per year, depending on the type and amount of coverage you purchase.
  3. Workers’ compensation insurance, which helps non-emergency medical transportation businesses cover the costs of employee injuries or illnesses. This type of insurance can help businesses pay for medical expenses, rehabilitation costs, and other related expenses. Workers’ compensation insurance is required in all states except Texas. Workers’ compensation insurance typically costs between 1% to 1.5% of your total payroll costs.
  4. Business income insurance, which is sometimes called business interruption insurance or business continuity insurance. This insurance helps businesses recover from certain losses caused by events such as property damage, theft, or business interruption. This type of insurance can help businesses cover the costs of not being able to operate for a period of time. It can also help businesses pay for expenses such as employee salaries, rent, and other ongoing costs.

Average costs are $500 to $1,000 per year for a small non-emergency medical transportation business, and $2,500 to $5,000 per year for a larger business.

Other types of business insurance to consider based on the specifics of your non-emergency medical transportation business include:

  • Product liability insurance, a type of insurance that helps businesses protect themselves from lawsuits that may arise due to products that they sell.
  • Professional liability insurance, also known as Errors and Omissions (E&O) insurance, helps professionals protect themselves from lawsuits. 
  • Employment practices liability insurance, also known as EPLI, helps non-emergency medical transportation businesses protect themselves from lawsuits that may arise from the way they employ their staff.
  • Cyber liability insurance, which protects you from lawsuits that may arise from a data breach or other cyber incident. 
  • Business identity insurance, which protects your business from theft or misuse of your  company name or logo. 
  • Commercial auto insurance and commercial fleet insurance, which protect you from lawsuits that may arise from accidents involving employees while driving for work. Typical costs are $1,000 to $2,500 per year for a small non-emergency medical transportation business, and $5,000 to $10,000 per year for a larger business.
  • Key person insurance or key man insurance, which protects your non-emergency medical transportation business from losses that may arise from the death or illness of a key employee
  • Equipment breakdown insurance, which can help pay for the cost of repairing or replacing damaged equipment, 

While this list of insurance options covers most non-emergency medical transportation businesses, you may be required to purchase additional coverage depending on the specific nature of your non-emergency medical transportation business. It is essential to speak with an insurance company to determine which policies are right for your business.

The cost of business insurance will vary depending on the type and amount of coverage you purchase. However, business owners can expect to pay a few hundred dollars per year for general liability insurance.

It is essential to talk to your insurance company to ensure you have the right coverage in place for your non-emergency medical transportation company.

How Much Insurance Should a Non-Emergency Medical Transportation Business Have?

This is a difficult question to answer, as the amount of insurance you need will vary depending on the type of services you offer and the size of your company. That being said, most insurance experts recommend that business owners purchase enough coverage to protect their assets in the event of a lawsuit.

When shopping for liability insurance, be sure to ask your insurance company about the coverage limits and supplemental coverage options available.

 

Insure Your Non-Emergency Medical Transportation Business

The amount of insurance you need for your medical transportation business will vary depending on the size and scope of your business. However, it is crucial to have enough coverage to protect your assets in a lawsuit.