NEMT insurance covers the risks associated with operating a business that provides non-emergency medical transportation (NEMT). NEMT insurance covers NEMT vehicles, their employees, and your customer passengers. In some states, NEMT insurance is required as a condition of operating a NEMT business so that the company is insured for the specific types of risks and injuries that can arise out of operating such a business.
A business that provides NEMT service operates a NEMT vehicle. A NEMT vehicle is one that is specially equipped for transporting persons with limited mobility to and from assisted living facilities, adult day care centers, hospitals, EMS facilities, group homes, and so forth.
Generally, vehicles such as an ambulance or an emergency first aid vehicle equipped with lights, sirens and emergency medical instruments are not considered NEMT vehicles.
NEMT Insurance Requirements
In many states, NEMT insurance is required by state or local law and the facilities that contract for NEMT services. Some of their requirements include that your company has been in business for at least ten years or operates a certain minimum number of vehicles.
What NEMT Insurance Covers
Whether required by law or by contract, your NEMT business needs the coverage necessary to protect the interests of your business and your customers. The insurance coverage available includes:
Commercial Auto Liability
Your NEMT business needs commercial auto liability coverage. Some states set requirements for liability limits that are dependent upon the seating capacity of your NEMT vehicles.
Wheelchair ramps or lifts will increase the insured value of any vehicle that is equipped with such specialized equipment. You should expect that your state’s department of transportation will require reports from your insurance company that prove your business has satisfactory coverage in place.
At a minimum, your policy should have a liability limit of $1,000,000 per occurrence. In addition, you should have Uninsured and Underinsured Motorists Coverage up to your full liability limits.
Property Damage Coverage
Requirements and recommendations for property damage insurance for NEMT businesses are similar to those for other businesses. If your business operates from a building it owns, you need insurance for that structure. Your business also needs to insure its office furniture and fixtures. Your electronic equipment, such as specialized computers, dispatch systems, and GPS systems, maybe your most valuable personal property and should be covered.
Additional coverage that may be appropriate for your business includes business income and extra expense insurance. This coverage can reduce the risk of lost revenue if your business is disrupted due to a natural disaster or another emergency.
Workers comp insurance is required for most businesses under state law; however, requirements for coverage differ by state. It protects employees who suffer a work-related injury.
For example, if one of your drivers is injured while driving for your business, workers compensation insurance would cover their health care bills, portions of lost wages, and, if appropriate, disability. It also protects your business if the injured employee sues the business for claims arising out of the injury. Usually, workers compensation insurance is the sole remedy available to an employee injured on the job.
General Liability Insurance
General liability coverage is important to protect your business against a variety of risks. In most states, general liability insurance is required as a condition to getting a business license.
General liability insurance covers risks commonly faced in a NEMT business. Examples of those types of risks include an injury to someone while your employee was helping them into or out of your vehicle, into a wheelchair, or escorting a passenger across a wet or frozen sidewalk. You should have a minimum liability limit of $1,000,000 per occurrence. You may also need to consider additional coverage for sexual abuse and molestation.
Depending on the number of employees your business has, the volume of business it does, and the nature and extent of real and personal property it owns or leases, other coverage may be worth considering. That additional coverage may include:
- Garage Liability
- Employee Dishonesty
- Group Health, Life, Disability, or Long Term Care Insurance
- Directors and Officers Liability
- Umbrella Insurance
Additionally, many NEMT businesses employ a transportation manager and add that employee to the policy as an additional insured. In those cases, the policy protects that employee if the NEMT provider is held responsible for an accident.
Contact Southern States Insurance for More Information about NEMT Insurance
A business that provides NEMT services faces risks on a daily basis that other businesses do not. Your passengers have medical conditions that cause them to need your services. They expect your business to transport them safely and with a level of care that public transportation does not offer.
When an accident or injury happens, your business must have insurance to cover the damage. The NEMT insurance experts at Southern States Insurance are available to discuss the types of coverage you need and provide it at competitive rates. Contact them today for more information.