Whether a mistake is real or perceived, a client can allege financial loss due to a service provided by your company or a failure to provide a service. The financial loss to your company can include both legal fees and awarded damages. A medical billing errors and omissions insurance policy protects your company and you against professional liability claims.
What Errors and Omissions Are Covered
Mistakes happen and an insurance policy to help with the financial aspects can be a boon. Types of claims covered by a medical billing errors and omissions insurance policy include:
- Employees malicious use of funds and/or information
- Failure to file claims
- Unauthorized disclosure of confidential information
- Clerical errors on filings
- Clerical errors on patient records
How to Choose the Right Coverage
With all the choices available out there, it can be difficult to choose the right one for your medical billing company. Some things to consider before purchasing a policy are:
- Does the policy have sub-limits on any component?
- Do any of the components covered require a co-insurance?
- Are payments done on a reimbursement basis or on a pay on behalf of?
Each policy has slightly different variations, so it is important to review the policy before signing. While there are many other things to consider, a medical billing errors and omissions insurance policy can help protect you and your business.