Navigating Insurance Requirements for NEMT Providers
Non-emergency medical transportation (NEMT) is a growing industry. It has been around for a long time because such a service is required under the government’s Medicaid program. In recent years, the industry has shown robust growth as more and more people—especially those with mobility issues—have realized how vital the service is.
The demand has led to an excellent opportunity for those in the private transit industry to start an NEMT company. Opening an NEMT business means getting a fleet of appropriate vehicles, hiring trained drivers, and sealing deals with brokers. NEMT insurance requirements must also be taken care of.
Understanding Insurance Needs for NEMT Companies
Insurance is mandatory for all companies, and this includes NEMT providers. There are several types of business-related insurance, and every state has different requirements.
Check with your state government for the necessary NEMT insurance coverage before you start looking for reliable NEMT insurance providers.
Here are the most basic NEMT insurance requirements:
General Liability
It is standard for businesses to have general liability insurance as it protects against any injuries that occur during operations. For NEMT providers, this includes all entities, such as the passenger, driver, and admin staff. It also covers potential damages arising from the delivery of the NEMT service.
It is called general liability because it provides blanket coverage that is designed to protect the company from most types of suits.
Commercial Auto Insurance
Any accident that involves NEMT vehicles will be covered by commercial auto insurance, even if it’s not strictly a traffic issue. For example, if there is an NEMT-related theft or fire that incurred losses for the company, the insurer will pay to recuperate the financial loss.
If the NEMT vehicle is in an accident and the driver and passenger need medical care, insurance will cover the medical costs.
Worker’s Compensation
Employees who fall ill or get injured while doing their jobs could get their medical expenses covered under this type of insurance. It also covers rehabilitation programs and lost wages. Most states require this type of insurance for all businesses.
Professional Liability
Companies always want to hire the best and most qualified employees they can rely on. But nobody’s perfect—a well-trained and highly experienced NEMT driver may still make honest mistakes. And these mistakes or simple bad luck may result in an accident.
Professional liability insurance will cover the cost of errors made by employees. And it doesn’t just apply to drivers. It can also be an NEMT insurance for brokers, who are responsible for dispatching information to the drivers.
For example, the driver may arrive late, leading to the passenger failing to make their medical appointment. In this case, the customer has the right to sue, and the situation can fall on the broker’s error.
This is why it is essential to use reliable software like ISI Technology to ensure proper dispatch of information.
Property Protection Insurance
If an NEMT vehicle is involved in an accident that damages another person’s property, property protection insurance will cover the cost of the damage. Some states mandate anybody with a vehicle to get this type of insurance.
Employment Practices Liability
Some employees may be aggrieved for a variety of reasons and end up suing their employer. This type of liability insurance covers the cost if the company loses the suit. It is not mandatory, but it is something that large companies must consider.
Umbrella Insurance
This type of insurance supplements regular insurance coverage, which means it pays for expenses beyond what is traditionally covered. So, if a driver gets into an accident and the company is sued for damages worth more than what commercial auto insurance covers, umbrella insurance will supplement the amount.
Cybersecurity Insurance
As NEMT companies store sensitive patient data, cybersecurity insurance is critical to offset costs from potential cyber-attacks. Policies can cover expenses like forensic investigations, rebuilding systems, legal fees, regulatory fines, and customer notifications after a breach. Key coverages to consider include third-party liability, data loss/restoration, cyber extortion threats, and business interruption. With patient privacy paramount in healthcare, cyber insurance allows NEMT providers to focus on service delivery rather than cyber threats. It’s a prudent investment as cyber-attacks become more common.
Tips for Finding the Right Insurance at the Lowest Cost
With so many types of insurance for business, how do you keep NEMT insurance costs low? Here are some helpful tips:
Understand NEMT Insurance Coverage
As they say, knowledge is power. When you are well informed about the type of insurance coverage you need and other critical insurance-related information, you will know how to find the best NEMT insurance providers. It’s the first step to not getting duped and not caving when insurance agents entice you to a more expensive but unnecessary policy.
Understanding insurance coverage is also essential in understanding coverage and cost factors of insurance.
Researching Different NEMT Insurance Providers
Don’t settle for the first insurance provider you have a conversation with. Find the top insurance companies in your area and look up their reputation and reliability. Also, look at reviews from credible websites and ask others in your industry about them.
Compare Prices
The most affordable insurance policies are not necessarily the best. It is best to compare the quoted prices from different insurance providers. More importantly, look at the coverage and if the amount makes sense. This is also an essential step, as you must assess if the offer aligns with your budget.
Choose a Provider That Covers All/Most Mandatory Policies
Getting all types of insurance from one provider is the most practical and affordable choice. This is why finding a reliable insurer to partner with is crucial.
How Trip Type Impacts Insurance Needs
NEMT services vary depending on the passenger’s needs. NEMT companies offer several trip types, such as ambulatory trips, which are for those who don’t need medical equipment to travel.
There are also NEMT vehicles for wheelchair users or those who need a stretcher. NEMT can also be used to transport human organs for transplant.
The type of NEMT service you provide will significantly impact insurance costs. The riskier the trip, the higher the premium.
Because some passengers may need medical equipment, trip insurance may be in order, too. How does trip insurance work? It will cover the loss of a passenger’s belongings during their trip on a commercial vehicle.
Working With an Insurance Agent That Knows NEMT
It is indeed to your benefit to work with an experienced and well-regarded insurance agent when shopping for policies for your NEMT company. It is worth mentioning that you are working with NEMT software to provide the best service to your clients and to increase operational efficiency.
What does NEMT software have to do with insurance coverage? The use of software may lower the cost of premiums as it minimizes the risk of accidents and other problems for your passengers, drivers, and dispatchers. For example, robust NEMT software provides route optimization details to all drivers for a faster and safer trip.
Plus, NEMT software can also help with damage mitigation in cases of accidents. Trip information is updated in real time, and help can be on the way immediately.
Conclusion
Insurance is critical for NEMT businesses of all sizes. A company cannot operate without insurance policies mandated by the state, so this knowledge is crucial for business owners.
Understanding how to navigate insurance requirements is critical to lowering the costs of premiums. Considering the many relevant liabilities that must be covered, this could make a serious dent in the company’s financials.
