Non-emergency medical transportation (NEMT) insurance is priced based on the risks your NEMT business faces. Pricing and coverage can vary significantly, and there is no set standard across the United States. Your company’s property and equipment, the number of drivers your business employs, their driving records, and the range of services your business provides are all taken into account.
Specific Factors Relevant to Pricing
NEMT business operations involve risks that are similar to many other businesses. However, the clients of NEMT businesses are elderly or disabled individuals who cannot find alternative ways to get safely to and from their medical appointments.
According to the Community Transportation Association of America, about 3.6 million Americans miss or delay necessary care because they have no proper transportation access. Those individuals need special assistance and also frequently need special equipment to transport them safely to their destinations.
For those individuals, NEMT businesses fill a critical need. To operate the NEMT service successfully, your business needs reliable employees who are trained to use the equipment your business operates. To operate safely, however, every NEMT business needs adequate insurance coverage. In some states and localities, insurance with minimum liability limits is required to operate a NEMT business.
The cost of NEMT insurance requires an evaluation of the risks your NEMT business faces. In evaluating the risks, your insurance provider typically will consider the following factors:
Transportation Equipment
Minivans, passenger vans, and SUVs are some of the most common vehicles used for non-emergency medical transportation. The size and value of the vehicles your business uses are important factors in pricing. Additionally, your insurance company will want to consider the areas you serve and how many miles your vehicles travel daily. The type and seating capacity of your vehicles, any attached equipment, and the ages of each will be important, too.
The more vehicles and drivers you have, the higher your rates will be. Insurance rates are calculated on a per-vehicle and per-person basis. It makes sense that as the numbers increase, so do the risks and the insurance rates.
Vehicles equipped for wheelchairs or stretchers (also known as ambulettes) are more expensive to insure because they carry a greater risk of passenger injury. The higher risk presented by these vehicles is due to the need to secure wheelchairs and stretchers properly. If improperly secured, wheelchairs and stretchers can dislodge unexpectedly and cause injury.
Note that NEMT insurance may not be appropriate or available for any vehicles equipped with lightbars, sirens, and life support equipment such as oxygen tanks. Those vehicles are considered emergency transport vehicles and require other forms of insurance coverage.
Driving Records of Your Employees
Your drivers are vitally important to the safety of your transportation service. Drivers with a history of safe driving will cost less to insure than those with a record. Your drivers’ ages will be an important factor, also.
Your insurance company will review the driving records of every driver you employ. Any infraction will be factored into the cost of insurance. For that reason, a clean driving record translates to lower rates, but a blemished record will increase the cost. Before you hire a driver, you need to review the driving record yourself to ensure that the person has a clean driving record.
Geographical Area
Frequently, each state and locality have their own legal requirements for NEMT business’ insurance. They factor in any aspects of the geography, weather and unique road risks that pose driving dangers to all areas. As a result, a NEMT company in one area of the country, such as New York City, could pay different rates than the same company operating in another less congested area of the country.
Claims History
If your business has been operating for a number of years, it likely has had to file damage claims. Your insurance company will factor in your company’s claims history in pricing your premiums.
Experience Level and Years in Business
The experience level of your company’s owners and managers is important in pricing insurance. If your company’s leaders have proven they can successfully operate a safe transportation company, your insurance rates will be lower. On the other hand, if you have no experience operating a NEMT business or your leadership has a poor track record, your rates will be higher.
Similarly, your company may be eligible for a discount based on the length of time successfully operating. Usually, if a company has been in business for at least three years without a significant claims history, the company may be eligible for a discount.
Also, if you have a general liability policy already in place, you may be eligible for lower rates on your NEMT insurance.
Save by Paying in Full
You can usually save money on your premium costs by paying for your policy upfront rather than in installment payments throughout the year.
For More Information about NEMT Insurance, Contact the Experts at Southern States Insurance
Getting the best NEMT insurance coverage you can afford will help you operate your business with peace of mind. Contact the NEMT insurance specialists at Southern States to get a competitive quote and for more information about NEMT insurance coverage.