birthing centers insurance

assessing their needs

Birthing canters insurance

Westwood will work with you to ensure your occupational therapy clients have the best insurance coverage for every threat they could face.

Birthing centers offer an alternative to hospital births, typically focusing on a more natural, family-centered childbirth experience. However, they face a unique set of challenges that commercial insurance agents should be aware of:

  1. Medical Liability: Like any medical facility, birthing centers are at risk for malpractice claims. The stakes are high due to the vulnerable nature of both newborns and mothers, making Professional Liability Insurance crucial.

  2. Licensing and Regulatory Compliance: Birthing centers must adhere to a multitude of local, state, and federal regulations, including licensing requirements that can be complex and costly to maintain.

  3. Limited Medical Intervention Capabilities: Unlike hospitals, many birthing centers are not equipped to perform surgical interventions, making quick patient transfers essential in emergencies. This introduces additional liability.

  4. Staffing Concerns: The qualifications and experience of the healthcare providers, which may include nurse-midwives, obstetricians, and other support staff, can vary and introduce different levels of risk.

  5. Public Perception and Reputational Risk: Because birthing centers are often considered non-traditional, they may face skepticism from the public or medical community, heightening the importance of maintaining a strong reputation.

  6. Facility Risks: The physical property, including specialized birthing suites, medical equipment, and other assets, needs protection against damage or loss.

  7. Patient Data and Privacy: Compliance with data protection regulations like HIPAA is essential, necessitating strong cyber liability coverage.

  8. Cost and Payment Issues: Many birthing centers operate on tight budgets and may face financial challenges, especially if they don’t have agreements with insurance providers for reimbursement.

  9. Community Outreach and Education: Many birthing centers engage in educational programs and workshops, which may expose them to additional liabilities.

Understanding these challenges can guide commercial insurance agents in crafting insurance packages that might include Professional Liability Insurance, General Liability Insurance, Cyber Liability Insurance, Commercial Property Insurance, Workers’ Compensation, and other specialized coverages tailored to the unique needs of birthing centers.

what specific insurance do they need?

Birthing centers face specific risks that necessitate a tailored insurance package to cover their unique vulnerabilities. Here is a breakdown of the types of insurance they generally need:

  1. Professional Liability Insurance: Also known as Malpractice Insurance, this is crucial for covering legal expenses and damages related to medical errors or omissions in care. Given the vulnerable nature of newborns and mothers, this is an absolute must.

  2. General Liability Insurance: This covers the basic risks associated with any business, such as injuries or property damage incurred by visitors or third parties on the premises.

  3. Commercial Property Insurance: This is essential for protecting the physical infrastructure, including specialized birthing suites and expensive medical equipment, against damages from fire, theft, or natural disasters.

  4. Business Interruption Insurance: If the center has to close temporarily due to a covered event, such as a natural disaster, this insurance will cover the loss of income and operating expenses.

  5. Workers’ Compensation: Mandated by law in most jurisdictions, this covers medical expenses and lost wages for employees who are injured or become sick due to their job.

  6. Cyber Liability Insurance: Given the storage and handling of sensitive patient data, Cyber Liability Insurance is important for covering the costs associated with a data breach or cyberattack.

  7. Directors and Officers (D&O) Insurance: This protects the personal assets of the center’s leadership if they are sued for alleged wrongful acts related to their management decisions.

  8. Employment Practices Liability Insurance (EPLI): This covers the organization against claims made by employees regarding wrongful termination, discrimination, harassment, and other employment-related issues.

  9. Patient Transfer Liability Insurance: Because birthing centers often don’t have extensive medical intervention capabilities, they may need to transfer patients to hospitals in emergencies. This specialized coverage can protect against liabilities arising from such transfers.

By understanding these specific needs, commercial insurance agents can provide birthing centers with a comprehensive insurance package that will protect them from the multifaceted risks they face.

advice for insurance agents approaching birthing centers

When approaching birthing centers, commercial insurance agents need to recognize that these establishments operate within a highly specialized and emotionally charged environment. A deep understanding of the challenges and risks particular to birthing centers is essential. You’re not just offering insurance; you’re offering peace of mind in a setting where the stakes—new human lives—are incredibly high. Begin your engagement with a comprehensive risk assessment that considers not just professional liability but also the unique factors like patient transfer liability, community education programs, and potential property risks related to specialized birthing suites and equipment.

While standard medical facility coverages such as Professional Liability, General Liability, and Property Insurance are a given, consider recommending specialized coverages like Patient Transfer Liability Insurance and Educational and Outreach Liability Insurance. Keep in mind that birthing centers are often smaller operations that may not have a dedicated risk management team. Therefore, adopting a consultative approach and providing value-added services like regular policy reviews, updates on changes in healthcare regulations, and advice on risk mitigation can set you apart. Your goal should be to become a trusted advisor, equipped to guide them through the complex risk landscape they navigate daily, thereby establishing a long-term relationship that benefits both parties.

Contact Michael Richards now

Michael specializes in insurance for this particular group. You can call him on the number below or fill out the form and he will get your message directly:

Michael Richards

sourcing the right  insurance for birthing centers is essential in today’s challenging climate


General Liability Insurance

General Liability insurance cover medical expenses and attorney fees which result from bodily injuries and property damage that your company or organization could be legally responsible for.

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Professional Liability Insurance

Professional liability insurance, also known as errors and omissions insurance (E&O) and medical malpractice insurance, protects your business against claims of negligence, malpractice, errors, and omissions which may have occurred during the fulfillment of a professional service.

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Telemedicine Malpractice Insurance

telemedicine malpractice insurance—also known as digital health insurance or eHealth insurance—has become increasingly vital for healthcare providers. to  protect them against claims of negligence, malpractice, errors, and omissions which may be the result of the limitations of webcam quality or the inability of a patient to properly photograph a condition. It can also cover cyber liability, such as remote controlled medical devices being hacked.

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Directors and Officers Liability (D&O) insurance

D&O insurance (Directors and officers liability insurance), shields the personal assets of company directors and officers, and where necessary, their spouses, from claims which could arise as a result of the decisions they made and actions they took within the scope of their regular duties.

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Cyber liability insurance

Cyber liability insurance covers the financial costs associated with a breach of your cyber security, such as a ransomware attack. It also covers first party costs including event management, data restoration, financial costs to third parties, network interruption, and cyber extortion.

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HNO Insurance

HNOA, (hired non-owned auto insurance) is designed for organizations who regularly hire vehicles or require employees to use their own vehicles in the course of their work. In the case of an accident where your employee was liable, it could cover physical damage to that other person’s vehicle, medical expenses, the cost of hiring an attorney to defend your business.

Workers’ Comp. Insurance

Workers’ compensation insurance covers your employees for workplace injuries or illness. It provides them with medical and wage benefits.

This coverage is mandated by each state, with the wage and medical benefits varying from state to state. Workers compensation also protects business owners from civil suits by workers who become injured on the job.

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Employment Practices Liability

Employment practices liability insurance (EPL insurance or EPLI), covers employers (PDF) against claims made by employees for:

  • Discrimination (based on sex, race, age or disability, for example)
  • Wrongful termination
  • Harassment
  • Failure to promote and other employment-related issues
Sexual Abuse & Molestation (SAM)

Sexual Abuse and Molestation Insurance provides coverage for organizations against claims arising from alleged sexual misconduct or molestation by an employee or other representative of the organization. 

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Environmental Liability insurance

Environmental Liability insurance is liability insurance specifically designed to protect environmental liabilities. This is a specialized form of general, commercial liability insurance that provides financial protection against litigation and clean-up costs resulting from claims of injury or damage caused by pollution, contamination or hazardous waste disposals. 

Commercial Property Insurance

Commercial property insurance is a fundamental component of risk management for healthcare and senior living providers. It is designed to protect the organization’s physical assets, such as buildings, medical equipment, furniture, and supplies, from financial losses due to damage or theft.

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Crime Insurance

Crime Insurance covers the insured party a reimbursement if their property is damaged due to a crime. Crime Insurance usually has a huge range of options and comes in different forms. It can be either a rider that can be attached to the existing insurance policy, or it is available as a completely separate product.

Commercial Auto Insurance

Commercial auto insurance is a crucial aspect of risk management for healthcare and senior living providers. It offers vital financial protection against vehicle-related incidents and is often required by law.

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Fully/Partially Funded insurance

Partially Funded insurance gives facilities the opportunity to pay a set premium for, and then in turn is  partially covered for specific risks.

Fully Funded Insurance allows facilities to pay premiums to have coverage against all risks. In return, if they are unfortunate enough to incur any of the covered loss or injury, they are reimbursed their insurance policy amount.

Excess and umbrella coverage

Excess coverage provides an additional layer of protection over and above what an underlying policy provides. It applies to a single policy only.

An umbrella policy on the other hand, provides additional liability coverage over and above what is provided by a number of underlying policies.

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we've got you covered

General Liability Insurance

Protecting healthcare organizations against increasingly crippling litigation.

Professional Liability Insurance

Protecting medical professionals against increasingly crippling litigation.

Medical Malpractice Insurance

Protecting medical professionals against increasingly crippling litigation.

Cyber Liability Insurance

Protecting healthcare organizations & professionals against cyber attacks.

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insurance for hospitals

Hospital Insurance typically covers all or part of the potential liability for hospital services. It includes medical malpractice, accidents involving hospital employees and equipment, care during surgery or any other invasive treatment, after-hours care arrangements by staff who need help with their children and more.

insurance for long term care facilities

Long term care facilities must protect themselves against potential liability arising from incidents within their facility. Westwood can help you negotiate a package tailored to your long term care facility client.

insurance for physicians

The different types of insurance for physicians includes medical malpractice insurance, professional liability insurance, errors and omissions insurance, an umbrella policy, and professional indemnity. As a physician, you should have access to all of these types of insurance.

traditional insurance products

Westwood have fostered exceptional relationships with underwriters and we go to great lengths to keep abreast of their latest products, changes in requirements and restrictions, including having weekly calls with the carriers, which you can see here, by joining our insurance insider group.

    Insurance products at Westwood Insurance Group

    You can find more information on the Insurance Products main page.

    If you have any questions on the different policies, check out our Insurance FAQ's

    alternative structures

    Westwood President, Michael Richards has extensive experience in setting up alternative structures for larger clients. Here are some examples:

    If you think your client could be large and stable enough to benefit from starting or participating in a captive or has a special need for another alternative structure, contact Michael Richards now by phone: 855 351 7487.