Insurance for Birthing Centers

Insurance is a critical safeguard for birthing centers, protecting them from the financial and legal vulnerabilities associated with their services. Professional liability insurance provides coverage for claims of negligence or errors during childbirth, while general liability insurance addresses non-medical risks, such as accidents on the premises.

Cyber liability insurance is essential for safeguarding patient records from breaches and ensuring compliance with privacy laws, while property insurance protects facilities and medical equipment from damage or loss.

Many regulatory bodies and healthcare networks require birthing centers to carry specific types of insurance to maintain accreditation and operational compliance. By securing comprehensive insurance coverage, birthing centers can focus on delivering safe, high-quality care to mothers and babies while mitigating potential risks to their practice.

Insurance for Birthing Centers can include:

Bodily Injury Coverage
Property Damage Coverage
Premises Liability including slips, trips, and falls
Completed Operations Coverage
Personal and Advertising Injury including Defamation (slander or libel)
Medical Payments Coverage
Legal Defense Costs
Legal defense expenses covered in addition to liability limits
Abuse and Molestation (SAM) Coverage (limited coverage)

Why do Birthing Centers need Insurance?

Birthing centers need insurance to cover them for the unique set of challenges they face, including:

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.
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.
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.
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.
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.
Facility Risks: The physical property, including specialized birthing suites, medical equipment, and other assets, needs protection against damage or loss.
Patient Data and Privacy: Compliance with data protection regulations like HIPAA is essential, necessitating strong cyber liability coverage

While many carriers will not insure birthing centers, Westwood Insurance Group works with carriers who offer specialized coverage tailored to the unique needs of birthing centers. Click here for a quick quote.