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Insurance for Specialty Hospitals

Insurance for Specialty Hospitals 

Specialty hospitals—whether cardiac, orthopedic, neurological, oncology, psychiatric, or rehabilitation—deliver advanced, high-risk procedures that carry unique liability exposures.

Homewood Insurance help specialty hospitals secure tailored coverage to protect patients, staff, and operations. This page outlines what insurance should include, how much it costs, and which activities can elevate premiums or even trigger denials.

Get a Free Quote Now

The fastest way to find the most suitable insurance coverage for your specialty hospital is to fill out our quick quote form, so we can give you an idea of the type of insurance coverage that best suits you.

Homewood Insurance works with a number of different carriers to ensure you have the most suitable insurance coverage at the best price.

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Insurance for Specialty Hospitals can include:

  • Professional liability for surgery, anesthesia, ICU monitoring, diagnostics, and inpatient care.
  • General liability for patient/visitor injuries, property damage, and assault/altercation incidents.
  • Staff protection for physicians, surgeons, anesthetists, nurses, therapists, and advanced practice providers.
  • Defense for peer review, credentialing, and regulatory investigations.
  • Facility-wide coverage including memory care, rehab, and behavioral health integration.
  • Optional protection for dialysis, ventilator units, bariatric surgery, pain management, or clinical trials.
  • Limits up to $2M per claim / $4M aggregate, with tail and prior acts coverage available.
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Insurance for Specialty Hospitals can include:

Malpractice or liability insurance can provide essential protection against these risks:

  1. Professional Liability (Malpractice)

    1. Coverage against claims arising from surgery, intensive care, advanced diagnostics, and complex treatments.
    2. Protection for anesthesia-related events, medication errors, surgical complications, and misdiagnosis.
    3. Includes staff liability for physicians, surgeons, anesthetists, nurses, and therapists.
    4. Defense against licensing board actions, peer review disputes, and regulatory investigations.
    5. Optional endorsements for high-acuity services such as bariatric care, ventilator support, dialysis, or pain management. biologic therapies

  2. General Liability

    1. Covers third-party bodily injury and property damage (e.g., visitor slips, falls, or equipment accidents).
    2. Protection for assault, elopement, or altercations in psychiatric or rehab settings.
    3. Advertising and personal injury coverage (e.g., defamation claims unrelated to patient records).
    4. Facility-wide premises coverage, extending to common areas, parking lots, and hosted community events.
    5. Evacuation Expense Endorsement to relocate patients during natural disasters or emergencies.

 

Homewood Insurance Group work with  different insurance carriers to find you the most suitable coverage at the best price. Get a quick quote now.

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Cost of Coverage:

Insurance pricing for specialty hospitals is higher than for standard acute care due to the complex, high-risk nature of services. Premiums vary widely depending on specialty, patient acuity, procedure volume, and state litigation environment.

Professional Liability (PL / Malpractice) – Estimated Ranges

  • Orthopedic and rehab-focused hospitals: $15,000–$25,000 per bed annually.
  • Cardiac and neurosurgical specialty hospitals: $25,000–$50,000+ per bed annually, reflecting higher complication and severity rates.
  • Oncology and psychiatric specialty hospitals: $12,000–$20,000 per bed annually depending on services offered.

General Liability (GL) – Estimated Ranges:

  • Typically $800–$1,500 per bed annually, covering premises-related incidents, visitor injuries, and property claims.

Key factors influencing cost:

  • Claims history – frequency and severity of malpractice or injury claims.
  • Location – premiums are higher in high-litigation states like Florida or New York.
  • Procedures offered – invasive surgeries, high-acuity ICU care, or experimental therapies drive rates higher.
  • Staffing and oversight – board-certified staff and risk management programs may lower premiums.
  • Regulatory compliance – facilities with violations or non-standard procedures face higher surcharges.

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High-Risk Procedures and their Impact on your Premiums

Specialty hospitals face heightened scrutiny for the following:

  • Performing experimental or non-FDA-approved treatments without IRB oversight.
  • Offering high-risk elective procedures such as cosmetic surgeries without disclosure or proper endorsements.
  • Providing skilled nursing or intensive care services beyond licensed scope.
  • Inadequate safeguards for abuse prevention, elopement, or suicide risk in psychiatric or rehab settings.
  • Lack of structured protocols for infection control, medication management, or surgical error reduction.
Specialty Hospital Type High-Risk Procedures Why Higher Risk? Insurance Impact
Cardiac/Thoracic Open-heart surgery, CABG, valve replacements High complication and mortality rates; claims often exceed $500,000. Premiums may double; often $1M+ per bed annually.
Orthopedic Spinal fusions, joint replacements Risk of paralysis, infection, or long-term disability; large jury awards common. Premiums +30–70% based on volume and claims history.
Neurological/Neurosurgical Craniotomies, brain tumor resections Highest average malpractice payouts (~$700,000); high severity of outcomes. Up to +100% premium hikes; sublimits often required.
Oncology/Radiation High-dose chemotherapy, radiation therapy Long-tail claims, radiation errors, and secondary cancers drive severity. Premiums +20–50%; higher if participating in clinical trials.
Obstetric/Maternity Cesarean sections, high-risk deliveries Birth injury claims average $400,000+; high jury verdicts in OB. Premiums +40–80%; exclusions possible in some policies.

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Other types of Insurance that Specialty Hospitals may need

 
General Liability Insurance

General Liability Insurance

General Liability covers medical expenses and attorney fees which result from bodily injuries and property damage that your facility or organization could be legally responsible for.
 
 
Professional Liability Insurance

Professional Liability Insurance

Also known as malpractice insurance, this  protects facilities against claims related to malpractice, negligence, or injury resulting from resident care. Staff members will typically be covered by professional liability insurance.
 
 
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Sexual Abuse and Molestation Insurance

Provides coverage for your specialty hospital against claims arising from alleged sexual misconduct or molestation by an employee or other representative of your organization. Essential for the senior living industry.
 
 
Commercial Property Insurance

Commercial Property Insurance

This protects your facility against damage or loss to your buildings, equipment, and other property, which can happen as the result of various risks such as fire, theft, or vandalism.
 
 
workers compensation insurance

Workers Compensation Insurance

Workers Compensation Insurance is usually mandated by law. It protects specialty hospitals and employees in case of work-related injuries or illnesses.
 
 
Cyber Liability Insurance

Cyber Liability Insurance

Covers you against financial losses associated with data breaches, cyber attacks, and other cyber incidents. Insurers will usually conduct rigorous testing of your online system to fix vulnerabilities as part of this policy.
 

Why Work With Homewood

At Homewood Insurance Group, we specialize in helping specialty hospitals navigate complex liability markets. With access to nearly 100 carriers, we understand which insurers actively write for specific specialties and which procedures trigger surcharges or denials. We also assist with:

  • Tailoring coverage to match your hospital’s scope of services.
  • Structuring layered coverage (primary + excess) to meet state and contractual requirements.
  • Identifying captive or alternative risk solutions for high-acuity facilities.
  • Providing risk management insights to reduce claims and stabilize premiums.

Call 947-274-3093 or
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Ralph Schiller

Ralph Schiller

Ralph specializes in sourcing the most suitable insurance for Specialty Hospitals at the best price. You can call him or fill out the form and he will get your message directly.