When it comes to running a business in a healthcare adjacent field, contracts are everything. This is particularly important for NEMT, or non-emergency transport companies, who take patients from their homes to doctor’s appointments, procedures, and other non-emergency healthcare facilities. Without NEMT options, these patients would have to find other, possibly more expensive and less safe methods of transport.
This makes the job of NEMT companies extremely important, but they can’t do anything without their contracts. So, how do these contracts work?
How Do Contracts Work for NEMT?
Generally, people don’t call an NEMT company unexpectedly for a ride to their appointments. Instead, they go through their insurance company, which has contracts with specific NEMT businesses. They book their transportation using this method, ensuring that the insurance company will pay for the ride.
For this to work, NEMT companies have contracts with health insurance companies and, in some cases, healthcare providers. State-run Medicaid plans are one example of this. These contracts state the terms involved in the relationship, setting up payments and other stipulations. In some cases, the contract may state that the NEMT company is liable for any patient injuries that occur during transport. This is why NEMT businesses need to have contractual liability insurance.
Contractual Liability Insurance Plans
Although contractual liability insurance can cover issues with the contract itself, such as problems getting compensated by the insurance companies, it can also help with your NEMT company finds itself in the hot seat via patient lawsuit.
For example, if your NEMT driver gets into an accident with patients onboard, those passengers might have the right to sue for damages and other medical expenses. The contract between the insurance company, passenger, and NEMT company comes into play here. If it states that the NEMT company is liable for everything that happens during transport, then the lawsuit could go forward. This could leave your company with a lot of out-of-pocket legal fees, let alone a settlement. Your contractual liability insurance can help in this situation.
Ensuring That Your Company is Covered
In order to protect your NEMT company from these liability lawsuits, it’s crucial to not only have the right kind of insurance in place, but also understand the terms of the contracts themselves. These contracts outline all of the terms between your business and the insurance company, explaining what you’re liable for and what they’re not.
Without having a contractual liability insurance plan in place, you could be stuck in a problematic contract, let alone have to face a lawsuit from an injured passenger. The policy does double-duty, providing your business, vehicles, and drivers with the liability insurance that they need to operate efficiently. Without it, you could end up losing money and potentially your business.
Have Questions? Contact Charlotte Insurance
Want to learn more about contractual liability insurance for your NEMT company? Contact Charlotte Insurance. Our agents can explore and explain all available options and put together the insurance coverage plan your business needs.