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By: Dax Kastrin

Owner of Elemental Risk Management

505-933-6511

In a world where quickly and efficiently acquiring medical supplies is essential, understanding the insurance needed for medical supply and distribution becomes even more important. This blog post will discuss what type of insurance is necessary when running a medical supply and distribution company.
 


Why Is It Important to Have Insurance Cover for Medical Supply and Distribution Businesses?


  • Asset Protection - Having the right insurance coverage can help to protect not only physical property such as buildings and equipment, but also intangible assets such as intellectual property, trademarks, and customer data. Having the right coverage will ensure that you are able to recover any losses should something happen to your assets.
  • Compliance - Many states have specific insurance requirements for medical supply and distribution businesses. It is important to understand these requirements so that you can make sure your business is compliant with the law. Having the right coverage can also help ensure that your business meets all of its obligations to customers, suppliers, and other stakeholders.
  • Peace of Mind - Knowing that your business is protected from any potential risks and liabilities can allow you to focus on running your business without worrying about unexpected costs or losses. Investing in the right insurance policies can help ensure that your business is secure, even in times of crisis. 

Types of Insurance Covers Needed in Medical Supply and Distribution

1. Professional Liability Insurance


Also known as Professional Indemnity Insurance (PII), this coverage protects medical supply and distribution businesses from claims of negligence related to their services. It covers any legal costs associated with defending or settling a claim, as well as any damages that may be awarded by the court. In medical supply and distribution, this type of policy can be especially crucial because of the potential for errors that could result in serious health consequences.

2. Employment Practices Liability Insurance


For medical supply and distribution businesses, employment practices liability insurance (EPLI) can provide important protection against claims of wrongful termination, discrimination, harassment, and other workplace-related issues. This policy covers any legal costs associated with defending or settling a claim, as well as any damages awarded by the court.

3. Business Auto Insurance


For medical supply and distribution businesses that make deliveries or use company vehicles, business auto insurance provides important protection in case of an accident. This policy covers the cost of repairing or replacing any damaged vehicles, as well as any damages associated with injuries suffered by those involved in the accident. For instance, if a driver employed by your business is injured in a car accident, business auto insurance can help cover the cost of medical bills or lost wages.

4. Product Liability Insurance


Every medical supply and distribution business needs product liability coverage. This policy provides protection against claims of harm caused by defective products supplied or distributed to hospitals, nursing homes, or individuals. Product liability insurance covers any legal expenses associated with defending and settling a claim, as well as any damages awarded by the court. For example, if a defective product supplied by your business causes injury, product liability insurance can help cover the costs of any associated lawsuit.

5. Commercial Property Insurance


It is the hope of every medical supply and distribution business that their property is not damaged or destroyed. However, if it is, this type of insurance provides protection for any physical property associated with your medical supply and distribution business, such as office buildings, warehouses, and vehicles. If any of these items are damaged or destroyed, commercial property insurance can help cover the cost of repairs or replacement.

6. Business Interruption Insurance


In the event of a natural disaster or other catastrophic event, such as a fire or flood, business interruption insurance can help your medical supply and distribution business by covering any lost income. It also helps cover expenses associated with resuming operations after an event. For example, if a fire damages your warehouse, business interruption insurance can help cover the cost of repairs or replacement so that your operations can get back to normal as quickly as possible.

7. Cyber Liability Insurance


In today's digital world, medical supply and distribution businesses must be prepared for the potential risks associated with cyberattacks. Cyber liability insurance provides protection against any potential costs associated with a breach of data, such as credit card numbers or other sensitive information. This policy also covers the cost of notifying affected customers and providing them with identity protection services. Cyber liability insurance is an important investment for any medical supply and distribution business that uses technology to store customer data.

8. Worker's Compensation Insurance


Worker's compensation insurance is a must for any medical supply and distribution business. This policy provides coverage for employees who are injured or become ill while performing work-related activities, such as lifting heavy items or driving a delivery vehicle. Workers' compensation insurance can help cover the cost of medical bills, lost wages, and other related expenses. It is important to remember that in many states, businesses are required by law to carry worker's compensation insurance.

How Much Insurance for Medical Supply and Distribution Businesses Cost?


The cost of insurance for medical supply and distribution businesses can vary greatly depending on:


  • The type and amount of coverage needed. 
  • The size of the business
  • The location of the business
  • Number of employees.


Generally, employers should expect to pay between 1-4% of their total payroll in premiums for workers’ compensation insurance. For other types of insurance, such as property or cyber liability, premiums can range from a $750 - $5,000. It is important for medical supply and distribution businesses to do their research and shop around to find the best coverage at the most affordable price. In addition, many insurers offer discounts for businesses that bundle multiple policies together.

Get Quotes for the Best Rates for your Business


We are a trusted insurance agency for medical supply and distribution businesses. We understand the unique needs of your industry and will work with you to find the right coverage for your business at competitive prices. 


Our team of experienced agents will provide you with personalized service and compare quotes from multiple carriers. We make sure to find the right coverage for your business needs, including commercial property insurance, general liability insurance, and workers' compensation insurance. Additionally, we can assist you with specialized coverages such as product recall and cyber liability protection.



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If you are preparing to start a Medical Supply and Distribution at your business, be sure to consider safety issues, legal requirements, and additional coverage options so that you can find the best possible coverage for your budget and needs. 

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