Insurance for Medical Equipment Manufacturers
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What Insurance Do Medical Equipment Manufacturers Need?
Professional Liability Insurance (or E&O Insurance), protects your small business from claims of mistakes, negligence or malpractice made when providing your services that caused somebody financial loss. PLI covers your legal defense costs, damages and settlements.
Business Interruption Insurance protects your small business if impacted by a covered risk. It'll cover the costs in replacing lost income and paying for additional expenditures. Also known as Business Interruption Coverage, this policy is usually part of your BOP (Business Owners Policy).
Equipment Breakdown Insurance protects your equipment from breakdowns caused by motor burnout, power surges, boiler malfunction, and operating error. It covers you for the costs to replace or repair your damaged equipment, and other related expenses.
General Liability Insurance protects your small business against claims of third-party bodily injury and property damage, reputational harm and advertising injury. It covers medical bills, repair costs & legal fees.
Frequently Asked Questions
Why do Medical Equipment Manufacturers need insurance?
Businesses in this industry focus their manufacturing efforts on equipment for medical purposes. Equipment includes surgical and medical instruments, surgical appliances and supplies, optical instruments and lenses, ophthalmic goods, and irradiation apparatuses.
A medical equipment manufacturing business can be very rewarding. With enough hard work, you'll get the profits you deserve. However, as a business, you are faced with plenty of risks. These risks are not only costly but could put your business into bankruptcy. With insurance, your business and personal assets are protected. It does that by covering medical fees when someone is injured under the care of your equipment and pays attorney and court fees if your business is involved in a lawsuit.
What risks do Medical Equipment Manufacturers face?
Medical equipment manufacturers face plenty of unique risks, below are some examples:
- A batch of the medical equipment you manufactured turned out to be faulty. You'll not only pay for the costly product recall, but you'll also for an attorney and court fees if there is a lawsuit.
- You provide professional advice to a client to purchase your medical equipment and it results in the adverse effect of what you advised. Your client can sue you for the damages.
- Your equipment suddenly malfunctions, lowering your productivity rate for the day. You'll risk paying for the repairs of the malfunctioning equipment or replacing it altogether if it cannot be repaired.
How much does insurance for Medical Equipment Manufacturers cost?
The cost of insurance for medical equipment manufacturers will depend usually on the size of the business and the coverage required as there is no fixed cost for insurance policies. Without taking these into account, below is the average cost of insurance policies for medical equipment manufacturers:
- General Liability insurance costs $500 in annual premiums.
- Professional Liability insurance costs $1000 in annual premiums.
- Equipment Breakdown insurance costs $600 in annual premiums.