You’re covered, until you’re not

Owning a small medical practice today comes with more than just the responsibility of caring for patients — it also means navigating an increasingly complex landscape of business risks. Rising operational costs, workforce stress, and evolving digital threats are forcing many practice owners to think like risk managers as well as clinicians.

From employee burnout to ransomware attacks, the vulnerabilities are multiplying. Cybercriminals continue to target health care organizations of all sizes, and even a single data breach can expose sensitive patient information, disrupt operations, and damage trust. Meanwhile, staff mental health remains a growing concern, with burnout contributing to turnover and productivity losses. Add in the potential for property damage, injuries, and liability claims, and it’s clear why insurance has become an essential safeguard for medical offices.

This Q&A outlines the most pressing risks facing small medical practices, the core coverage options every office should carry, and how to work with a trusted agent to build the right protection plan for your business — so you can stay focused on what matters most: patient care.

Understanding your risks

Q: What are the top risks facing small medical practices today?

A: Small medical practices encounter several critical risks that require careful management. Owners of these practices have told us they are particularly concerned about:

• Employee mental health, since stress in medical environments can lead to decreased productivity, low morale and high turnover.
• Cybersecurity threats – especially unauthorized access to financial accounts and data breaches – necessitating proactive cybersecurity measures, such as endpoint detection and incident response plans.
• Property damage and bodily injury, with climbing costs emphasizing the need for comprehensive insurance coverage to protect against these financial liabilities.

Essential coverage options

Q: What basic insurance coverage should my medical practice have?

A: A Business Owner’s Policy (BOP) is foundational, offering protection against general liability claims and lawsuits, safeguarding property and covering business interruptions.

The property coverage within a BOP helps protect the property you own, lease or rent and typically includes your buildings, equipment, furniture and inventory. It can help cover repair or replacement costs of stolen, damaged or destroyed property, including property that isn’t yours but was in your care. It can also cover loss of income and expenses like rent, payroll and other financial responsibilities while your property is being repaired or replaced after a covered loss, such as a fire.

Workers compensation insurance is an additional type of coverage that can help pay for medical expenses and lost wages for injured workers. According to the 2025 Travelers Injury Impact Report, employees at small businesses missed an average of 86 days after getting hurt on the job between 2020 and 2024, seven more days than the prior five-year period.

If your practice uses vehicles for business purposes, commercial auto insurance is also a necessity. And an umbrella policy provides an additional layer of protection against claims and lawsuits not covered by, or exceeding damage limits of, your underlying policy.

Q: What specialized coverage should medical practices consider?

A: Beyond basic coverage, specialized insurance is vital to address risks faced by medical practices. Protecting confidential data stored electronically, such as patient information, is crucial for medical practices – cyber liability coverage helps protect against data breaches and cyberattacks, covering costs associated with data loss and recovery. It also can help medical practices with preventive measures to reduce their risks before a potential security breach. According to the 2025 Travelers Risk Index, cyber, computer, technology or cloud risks were among the top concerns for health care decision-makers. More than two-thirds (69%) of these decision-makers said they were somewhat or greatly worried about a security breach. That’s up 15% from 2024.

Other specialized insurance medical practice owners should consider includes employment practices liability insurance to help manage risks related to employee claims of discrimination, harassment or wrongful termination. Additionally, there are bundled property coverages tailored for medical practices that can provide protection against losses such as spoiled medications due to refrigeration breakdown.

Understanding your policy

Q: What should I know when finding insurance coverage?

A: While the price of the policy is certainly an important consideration when looking for an insurance policy, working with a trusted agent or broker to find the right fit holistically can help reduce risk and make the process easier so you can focus on operating your business and taking care of patients. According to a survey Travelers conducted with medical practice owners, 80% believe customer service, claims handling expertise and competitive pricing are all extremely or very important when finding the right policy.

Q: How much will a policy for my medical practice cost?

A: The cost of insuring a small medical office will vary based on several factors, like location, claim history, number of employees and more. A small office with two or three employees in a rented space will have different needs than an office with many doctors, nurses and administrative staff in an owner-occupied office space. Working with a trusted agent or broker to customize your coverage to your specific needs will ensure you are appropriately covered and help minimize risks.

Matthew Richards is an Industry Lead with the Small Commercial group at Travelers.