Medical Billing Service Insurance Coverage Checklist
The coverages a medical billing service business may carry — core, prevalent, and situational — why each matters, and the gap most often missed.
Pull out your current policy and check the box next to any coverage you can confirm is already in place — anything unchecked is worth a quick conversation with your advisor. Coverage checklist for medical billing, coding, and revenue cycle management companies. Priorities reflect typical exposure for this class; confirm against your actual services, clients, and data.
Tick each coverage you can confirm you carry — anything left unticked is a good question for your next policy review.
| Have it? | Coverage | Why this business needs it | Priority |
|---|---|---|---|
| Medical Billing Errors & Omissions | Covers client losses from coding and billing errors, missed filing deadlines, and denied claims. | Core | |
| Cyber / Privacy Liability | Covers patient data breaches, ransomware, HIPAA notification costs, and regulatory fines where insurable. | Core | |
| Regulatory / Billing Errors Defense | Pays defense costs for payer audits, OIG investigations, and False Claims Act suits — often excluded under E&O. | Core | |
| Commercial General Liability | Covers office premises claims; usually packaged with property. | Prevalent | |
| Crime / Fidelity (incl. Client Funds) | Covers employee theft of client payments and patient collections. | Prevalent | |
| Social Engineering / Funds Transfer Fraud | Covers payments diverted by fake instructions from clients or vendors. | Prevalent | |
| Employment Practices Liability | Covers claims by staff, including former employees who become whistleblowers. | Prevalent | |
| Business Income (Dependent / Cyber) | Covers income lost when a clearinghouse or vendor outage stops claims. | Prevalent | |
| Workers' Compensation | Required for employees. | Situational | |
| Directors & Officers | Covers owners and officers for investor and lender claims. | Situational | |
| Fiduciary Liability | Needed if you sponsor a retirement plan. | Situational | |
| Umbrella / Excess Liability | Adds limits above GL; some hospital contracts require it. | Situational |
The coverage gap most often missed
The gap most often missed by billing companies is government investigations. A billing company can be named in a False Claims Act suit for coding its clients' claims — one paid $4.6 million after a former employee sued — and many E&O policies exclude fraud, billing errors, or government penalties. Cyber adds a second gap: the 2024 Change Healthcare attack showed how one breach can expose millions of patients and stop claims for months. Confirm you carry regulatory defense coverage, a cyber limit sized to the patient records you hold, and dependent business income for vendor outages.
Send us the checklist and we'll review your medical billing service coverage line by line, then market it across multiple carriers that compete for your account.
Related: Medical Billing Service Insurance · Medical Billing Service Supplemental (apply) · All coverage checklists
Frequently asked questions
What insurance does a medical billing service business need?
The core coverages for a medical billing service business are Medical Billing Errors & Omissions, Cyber / Privacy Liability, Regulatory / Billing Errors Defense. This checklist also lists the prevalent and situational coverages worth considering, with a plain-English note on why each matters.
Is this checklist insurance advice?
No. It is a free educational tool to help you have a more informed conversation with a licensed professional. It affords no coverage and is not insurance, legal, or financial advice — only your actual policy language governs what is and isn't covered.
Can Cory Washington & Co. review my medical billing service coverage?
Yes. Share your checklist and we'll review your program line by line, market your account across multiple carriers, and explain the trade-offs in plain English. Cory Washington & Co. LLC is licensed in all 50 states.
This checklist is a free educational tool from Cory Washington & Co. to help you review your own coverage and have a more informed conversation with a licensed insurance professional. It is general information only — not insurance, legal, or financial advice, and not a recommendation to buy, change, or cancel any policy. Coverage terms, availability, limits, and requirements vary by policy, carrier, and state, and only the language in your actual policy governs what is and isn’t covered. Checking or leaving blank any item above does not indicate that you are adequately insured or under-insured. Using this checklist does not create a client, agency, or fiduciary relationship. Always consult a licensed professional about your specific situation.