Guest post – In collaboration with John A. Adcock, CLU®, ChFC®, CFP®, at Treloar & Heisel

As a doctor running your own practice, you likely already have a Business Owner’s Policy (BOP) or insurance professionals recommend you consider one. Think of it like homeowners insurance for your practice.

But as your practice grows, especially if you’re expanding to additional locations, your insurance needs evolve. What worked for one office might not be enough for two or more. From coverage types to policy limits, scaling a practice means revisiting your risk management strategy.

Here are a few considerations insurance professionals recommend when expanding your practice footprint:

1. Know What Your BOP Actually Covers

You don’t have to be an expert, but having a general idea of what’s included in your BOP is important. At minimum, insurance teams typically recommend your policy includes general liability and property coverage.

2. Can One Policy Cover Multiple Locations?

If all of your locations fall under the same legal entity, insurance companies generally allow them to be bundled into one BOP. However, make sure your policy limits reflect the added exposure of operating in more than one place.

3. Don’t Overlook Liability Limits

General liability covers situations like patient injuries on-site that could lead to legal action. If you’re adding new locations, it may be wise to add an umbrella policy to increase your liability limits. A baseline recommendation is $2 million per occurrence and $4 million aggregate, but the right amount depends on your situation. Adding locations often means adding risk, and that means bolstering coverage.

4. Property Coverage Gets More Complex

Whether you own or lease your new location, you’ll want to evaluate what needs to be covered. If you’re leasing and responsible for tenant improvements — think cabinetry, countertops, walls—you’ll likely need coverage for those fixtures. Equipment like exam tables, imaging machines, computers, and furniture should be included in your BOP across all locations. And if equipment is financed, lenders often require proof of replacement coverage.

5. Planning a Buildout? You May Need Builder’s Risk Coverage

If your new location is under construction or undergoing major renovations, consider a Builder’s Risk policy. This protects your space during the buildout phase but doesn’t include general liability (GL), so you’ll need a separate GL policy until you’re ready to switch over to a BOP. Things like construction timelines, vacancy duration, and whether the changes are structural or cosmetic all impact your coverage needs.

6. Business Interruption Coverage for Multiple Locations

BOPs may include business interruption insurance, but only if there’s a qualifying event; usually physical damage. If a fire or natural disaster forces one location to close, this coverage can help pay staff, cover rent, or offset lost income. Coverage is typically limited by duration and daily dollar amounts, and you may need to show profit and loss statements to receive reimbursement.

7. Worker’s Comp Still Applies, Even Across Locations

As long as all locations are under one business entity, one policy should suffice. Keep in mind: all employees, including doctors on payroll, are generally included. Owners can often opt out, depending on how their health insurance is set up.

8. Other Policies May Need Updating Too

When you grow, so does your risk exposure. Revisit other coverages like:

• Employment Practices Liability Insurance (EPLI) – for protection against workplace claims.
• Cyber/Data Breach Insurance – a must if you’re handling more patient data across locations.

These should be updated to reflect the increased employee count and broader exposure.

9. Umbrella Policies Can Add a Safety Net

Umbrella insurance adds extra liability protection on top of your general liability limits. It can be a financial lifesaver if a claim exceeds your base coverage.

10. Should You Keep All Your Coverage with One Carrier?

It depends. Keeping coverage under one roof can simplify billing and claims. But the right coverage should always take precedence over convenience. Different states, property types, and exposures may call for different insurers. Annual reviews with an insurance advisor can help determine if consolidating makes sense or if you’re better off diversifying.

The Bottom Line

As you grow your practice, insurance coverage should grow with you. From evaluating umbrella policies to updating equipment protection and ensuring business continuity, reviewing your policies annually is important. It’s all about protecting what you’ve built so your focus can stay on caring for your patients, not managing risk.

About Treloar & Heisel

Treloar & Heisel offers comprehensive coverage designed specifically for doctors. As your practice grows; whether you’re adding locations, equipment, or staff, it’s important to have insurance that evolves with you. Treloar & Heisel understands the unique risks healthcare professionals face and provides tailored solutions to help protect your practice, assets, and future. Learn more about your options and get protected.