Author: Chris Baxter

If you’re a CRNA or any medical professional, you understand medical malpractice claims can financially damage you and take up your time. CRNAs have an essential job with life-and-death stakes, which means they can find themselves targets of litigation when negative outcomes occur.

Our detailed guide looks at how often malpractice claims name CRNAs, the legal requirements for malpractice claims, and the three most common CRNA malpractice claims.

Do CRNAs Get Sued?

Yes, Certified Registered Nurse Anesthetists (CRNAs) sometimes come under litigation with accusations of medical malpractice. CRNAs have a lot of responsibility in monitoring and aiding in administering anesthesia, which is almost always safe but can give rise to dangerous complications that can cause severe complications and even death.

When working in any position that sometimes has adverse outcomes that result in injury or death, litigation is likely to follow, even if the anesthesiologists and CRNAs performed their duties correctly. It’s one of the challenges that CRNAs face in their profession.

Is it common for CRNAs to be Named in Malpractice Lawsuits?

CRNAs are often named in malpractice lawsuits.  Now that CRNAs have more autonomy, they are often responsible for creating and implementing an anesthesia and treatment plan, so much of the responsibility falls on them.

Do CRNAs Get Sued More Often Than Others?

Relative to other medical professions, malpractice claims don’t target CRNAs substantially more than similar positions. But there is a belief that the rate at which CRNAs face malpractice claims could rise. Unfortunately, it’s due to one of the benefits of the job.

Recently, CRNAs have been given more autonomy in their profession, which means that it’s common for CRNAs to practice independently. Independence benefits CRNAs, but it also makes them more solely liable for mistakes and complications. CRNA liability insurance is crucial for CRNAs, especially if they operate an independent practice.

Legal Requirements for Medical Malpractice Claims and Litigation

Before a medical malpractice claim can move forward in litigation toward resolution, it must first pass some legal requirements. The following are the primary legal hurdles a medical malpractice claim has to clear to continue.

Violation of Standard Medical Care

A patient has rights, including informed consent and an expectation from the CRNA to follow standard and safe medical care. A medical malpractice claim has to prove that a patient’s medical care from a CRNA, or any medical professional, deviated from or violated standard medical care.

They’re vague terms, but omission and negligence are the two commonly used standards for violating standard care. So either the CRNA purposely omitted medical care, for whatever reason, or they neglected the patient, either intentionally or unintentionally. Neglect is ultimately the most common reasoning, especially when dealing with malpractice claims related to overworking or exhaustion.

Serious Injury or Damage

If a claim clears the first hurdle, it then has to show that the patient suffered from severe injury or damage. Now, how serious is a serious injury? That’s a tricky legal question, but it doesn’t include a small scratch from a fingernail.

Some of the terms malpractice claims use are suffering, hardship, pain, disability, significant medical bills, loss of income, and sometimes death. A medical malpractice claim has to prove the patient went through one of these damages to continue litigation; if no damage is shown or considered, the lawsuit does not continue.

Injury Caused Due to Violation of Medical Care

The final legal hurdle is for the malpractice claim to show that the first factor caused the second factor. Essentially, the patient suffered damage because of a deviation from the standard medical care of the defendant.

It’s not enough that a claim shows there was a deviation of standard care, and there were also damages; the claim has to prove that one caused the other. Unfavorable outcomes are not enough to file malpractice claims if it’s deemed the professionals administered proper medical care, but a negative result happened anyway.

Likewise, a malpractice claim won’t go forward simply because of a violation of standard care if no significant injury is proven. For a claim to be successful, it has to prove all three factors.

3 Most Common CRNA Malpractice Claims

We know what makes up a malpractice claim, but what are the most common claims against CRNAs? Every case is different, but some of the most common issues follow these general trends.

Sub-Par Performance of Procedures

Many medical malpractice claims leveled against CRNAs regard the application of specific procedures including, but not limited to, anesthesia and intubation. For instance, many CRNAs are also airway experts, which means that they commonly intubate patients before a procedure or even in emergencies.

Intubation is a standard procedure, but mistakes happen, and intubation errors can result in significant injury and death. If, for example, a CRNA intubating a patient misses the windpipe, the resulting complications can result in brain injury or death, more so if it’s an emergency procedure.

Poor Monitoring of Patients

Perhaps the most common reason for a medical malpractice claim against CRNAs is the pre- and post-procedure monitoring of patients. If a CRNA doesn’t check up on their patients regularly, complications can quickly grow and lead to more extensive damages and injuries for the patient.

It’s common to see this complaint in a facility dealing with understaffed departments where facilities task CRNAs with monitoring too many patients. An emergency happens with one patient that the CRNA has to tend to, leaving other patients vulnerable for extended periods.

Suffering From Improper Positioning

During a surgical procedure that uses anesthesia, the anesthesiologist and CRNA are responsible for positioning the patient for the procedure so that it doesn’t harm the patient.

If, for instance, a patient is positioned on their side with most of their weight on their elbow for hours, it could lead to damage to their ulnar nerve, also known as the funny bone. It may seem simple, but improper positioning by the anesthesiologist or CRNA could lead to long-term nerve damage for patients.

Those are three of the most common CRNA malpractice claims, but there are still many more varieties of claims. Medical professionals have much to deal with, but with proper liability insurance, they can do their jobs without fear of improper medical claims that can waste their time and money.

You can get a CRNA malpractice insurance quote from Baxter & Associates today. Contact us to learn more about how we can protect your best interests so you can continue to help patients and grow in your career.

Nurse practitioners are vital to the healthcare industry as they work directly with doctors and patients. As well-trained and educated as any nurse is, errors can still happen. We’ve compiled some of the most common mistakes to avoid for nurse practitioners to give professionals an idea of typical errors that arise.

Medication Administration Errors

The most common malpractice claims against nurse practitioners (NPs) have to do with medication administration. NPs administer medicine to patients countless times every day, so it’s not unlikely that mistakes are made regarding the amount of medication, the type of medication, or even medication administered to the wrong patient.

Whether you’re a new nurse or a veteran, mistakes happen, so having a malpractice insurance plan for nurse practitioners is crucial. NPs recommend highlighting the patient’s conditions and the essential information to ensure they receive the proper medication. Also, double-check the chart and documentation to ensure the medication list is updated accurately.

Causing Infections

One of the starkest dangers facing patients is infection. As NPs come into close contact with so many patients regularly, they carry the potential of spreading bacteria and causing infections.

Infections are persistent, so NPs can never be careless when it comes to personal hygiene and equipment sanitation. Every NP already knows this, but it’s crucial to emphasize infection prevention, even if the practices become repetitive.

Improper Documentation

Documentation is another common area where NPs can make errors. NPs are responsible for filling out a lot of paperwork, so it’s not surprising that mistakes can happen or their handwriting becomes illegible to others.

The best advice NPs have to offer is to fill out documentation promptly, write as clearly as possible, and pay extra attention to the details. A misread chart or improperly filed documentation can lead to severe consequences for the patient.

Patients Falling

NPs are responsible for the health and safety of patients most of the time, including protecting them from themselves. One of the most common hospital injuries is when patients attempt to move or get out of bed and fall.

NPs can’t physically restrain all of their patients, obviously, but they should always try to watch their patients. Explain to them the dangers of overestimating their strength and trying to move before their body is ready.

Nurses have many responsibilities and duties to complete every day, so the occasional error happens. But, keep an eye on these common mistakes to avoid for nurse practitioners, and you’ll improve your job performance and better legally protect yourself.

Advancing your career is a challenge, no matter what industry you’re in. It takes many years of education and training to become a Certified Registered Nurse Anesthetist (CRNA), so once you’ve made it, you want to do everything you can to protect and grow your career. If you’re looking for advice, check out these helpful CRNA career tips you should know.

Network With Other CRNAs

No matter what industry you’re in—whether it’s healthcare, service, financial, or anything else—networking with other professionals is a good idea. The American Association of Nurse Anesthetists (AANA) and other nursing organizations frequently host conferences, workshops, and other events that are excellent opportunities for CRNAs to increase their network.

What better resource is there to offer advice and consultation on your career than other professionals who have gone through or are experiencing the same challenges as you?

Get Protected

If you haven’t already, CRNA malpractice insurance is an absolute necessity. A medical malpractice claim can quickly ruin a CRNA’s career and financial situation without proper insurance. Accidents and misunderstandings happen, and if you’re not adequately protected, your career that you’ve worked so hard for can be severely damaged.

Work With a Recruiter

Working with a staffing partner offers many advantages if you’re on the hunt for a new position in a new facility. Recruiters have more resources and a more extensive network to work with, which means more opportunities for you to consider.

Even if you’re not actively looking for a new placement, it’s still worthwhile to keep yourself appraised of open positions and your possible options. Sometimes, the opportunity you’ve always been looking for appears when you’re not searching for it.

Consider Traveling

A growing trend in the healthcare industry and with nurses is travel placements. Staff shortages during the pandemic forced many facilities to use travel nurses—professionals from other parts of the country relocated to fill in on staff temporarily.

If you feel like you’re in a rut and want to experiment with different locations and facilities, taking a travel placement is an excellent opportunity. Travel nurses typically earn a higher wage and are compensated for housing and relocation. Maybe your temporary placement will turn permanent!

We hope that these helpful CRNA career tips you should know have given you something to think about with your career. It’s an interesting time for nurses and the healthcare industry, so keep your eyes and ears open as you never know when or where career opportunities will present themselves.

The world of nursing is quite expansive, which can feel overwhelming for those unfamiliar with the territory. There are plenty of nursing opportunities with varying educational and experience requirements. Here are the most common types of nurses and what they do.

Nurse Practitioner

Nurse Practitioners—or NPs—work at the highest level of the nursing profession. These healthcare workers can manage and treat acute and chronic health problems. Since NPs work at such an advanced tier, they usually have a Master of Science in Nursing. Furthermore, due to the increased exposure to patients and their treatment, a malpractice insurance plan for nurse practitioners is a must.

Nurse Practitioners can specialize in one of several areas, including emergency nursing, family practice, gerontology, neonatology, gynecology, pediatrics, etc. As primary and specialty providers, they perform many of the same job duties as physicians.

Certified Registered Nurse Anesthetist

Certified Registered Nurse Anesthetists are the people who administer anesthesia to patients before procedures and monitor their status during and after the medical operation. Because anesthesia is such a nuanced and delicate science, CRNAs must have thorough education and certification to enter the medical workforce. We have some tips for you on how to find a job as a nurse anesthetist. 

Knowing the most common types of nurses and what they do can help aspiring medical professionals choose the right career track. Just bear in mind that nurse practitioners need medical malpractice insurance. For more information on coverage, reach out to us at Baxter & Associates today. 

Chiropractors help people live better and more comfortable lives every day, but etiquette and bedside manner are also critical for a chiropractor’s success. Ahead, we’ll go over the etiquette every chiropractor should follow, from pre-treatment to post-treatment.

Chiropractor Etiquette—Pre-Treatment

The time you spend with a patient in the pre-treatment phase is crucial to building a rapport and establishing your credibility. This can determine how well the treatment will proceed and how effective it’ll be, as well as how confident the patient is moving forward. With the right information, you can avoid the common mistakes new chiropractors make.

Before treatment, keep the following tips and guidelines in mind.

Don’t Keep Them Waiting

Remember that your patient’s time is just as important as yours. We understand that you want to be as thorough and attentive as possible with every patient, but the most common complaint patients have against doctors is wait time.

Communication and treatment always come first, but you’ll attract patients and retain them the more punctual you are with their appointments.

Have Them Lead the Communication

Communication is difficult for some patients, and it often falls on the chiropractor to open up clear lines of communication and coax information out of the patient. Remember that patients aren’t as familiar with treatment options or even ailments, so they may struggle to describe their pain or problem accurately.

Lead them along with questions so they’re the ones driving the conversation. Make sure you’re listening actively—patients will be able to tell if you aren’t.

Show Confidence and Authority

As a chiropractor, you have lots of education and training behind your treatment, but a patient may not immediately be confident in your skills. Before treatment begins, demonstrate your expertise to establish an authority on the subject and ease the patient’s mind.

When you talk to the patient, be clear and precise about why they may be feeling pain and discuss the treatment options to consider. Patients want to be heard, but they also need to know they’re in good hands.

Sympathize and Listen

When the patient describes their pain or ailments, focus on and listen to what they’re saying and how they’re saying it. Don’t interrupt them or look distracted as you take notes.

Sympathize with their pain and show the patient that you understand them. Above all else, patients want to feel that there is someone else who understands what they’re going through and knows how to fix it. Empathizing helps make the patient more comfortable opening up and communicating with you. Ignoring bedside manner is one of the mistakes new chiropractors make, but it will cost you clients in the long run.

Empower the Patient

When patients enter your office, they’re probably a little frightened and feel powerless to fix whatever is ailing them. You can put their minds at ease by empowering them with knowledge.

After discussing their problem, walk them through the possible reason for their ailments and pain so that they can better understand their body. Explain the steps to the treatment and thoroughly explain their options in layman’s terms.

People feel better when they know what they’re facing. Help make them feel like a partner in their treatment instead of a passenger to your expertise.

Chiropractor Etiquette During Treatment

You’ve sat and talked with the patient and come up with a treatment, either for that day or for a future appointment—now, it’s time for the actual treatment. Improve your bedside manner and relationship with your patient by following these tips.

Keep Communication Open

While the patient is undergoing treatment, you want to continue to build upon the communication and rapport you created in the pre-treatment session. Walk the patient through what you’ll be doing, why this treatment is best, and what they can expect during and after the treatment.

Ask for feedback from the patient as the treatment moves along, gauging their comfort and pain levels regularly. As you use specific techniques, explain them to the patient and ensure that they approve of them. If the patient doesn’t approve, have alternative approaches ready.

Also, it’s good to have some usual chitchat during the procedure. It helps put the patient’s mind at ease if you look and sound confident in what you’re doing and can help distract them from any pain or nerves they may have.

Know When To Listen

Avoid talking over or interrupting the patient—communication is a two-way street between the professional and the patient.

The patient will probably feel a little overwhelmed with all the information you’re giving them, but let that settle over them and get them talking about themselves to make them feel more comfortable.

Warn the Patient About Side Effects

Always make sure the patient feels informed about the treatment and possible side effects. This way, you can help avoid negligence or malpractice claims.

Chiropractic professional liability insurance protects you against such claims, but it’s best to head off any problems before they begin. Ensure that your patient understands all the details and consequences of treatment—both positive and negative.

Chiropractor Etiquette—Post-Procedure

The procedure is over, but the treatment isn’t. The time immediately following the initial treatment is still crucial to the patient. Remember, it’s not enough for the patient to be pain-free at the time—a thorough treatment plan will help outline their future.

Communicate Treatment Plans

Now that the procedure is over, solicit feedback from the patient about how they’re feeling physically and mentally. If their ailment requires future treatment, explain to them why you’d like to see them again.

Also, give them treatment options if applicable—patients want to feel like they have some control over their care.

Refer the Patient if Needed

Sometimes, patients see a chiropractor because they don’t have any other ideas for what to do. Unfortunately, a chiropractor may not be the best option for every patient, so don’t be afraid to refer them to another medical professional or even another chiropractor.

Some young chiropractors don’t want to admit they can’t help, but everyone has limitations. The patient’s well-being always comes first, so if you think another chiropractor or a different medical professional can help them, you should tell them that.

Give Them Something To Take Home

Whether or not you’re planning on seeing the patient again for further treatment, it’s always helpful to send them home with something. Give them some exercises, stretches, and health tips that could improve their quality of life.

It shows the patient that you have their best interests at heart and want them to feel better soon. If you don’t have a future appointment scheduled, check on them days or weeks after the treatment. Your patients will appreciate the thought and care you put into following up with them. Ideally, they will give your practice a positive review or testimonial, which can help you grow your chiropractic practice.

Soft-tissue therapy and spinal manipulations are only part of the job of a chiropractor. Along with treatment, there is etiquette that every chiropractor should follow, but what’s most important is making the patient feel heard and important.

At Baxter & Associates, we want your practice to thrive. Make sure it’s covered for any eventuality with the best chiropractic malpractice insurance. Contact us today for more information.

The world of medical malpractice is quite vast, encompassing all aspects of health professionals’ work, including times when they’re not actually working. In the lifespan of a medical career, a person may change jobs a handful of times, crossing state lines and moving higher up in their specialty. This is where special policies and additions come in. Here are the fundamentals of medical malpractice tail coverage.

Medical Malpractice Policy Basics

To appreciate the scope of tail coverage, you must grasp the basics of medical malpractice insurance. A large variety of professionals need coverage. Each policy is different based on the doctor’s location, specialty, and coverage preferences. However, the fundamental purpose remains—it supplies financial aid to clients in legal trouble per the policy agreement. 

Bringing Tail Coverage Into the Picture

Once a policy term ends and payments cease, most insurers cease their coverage. Some stipulations or special insurance types cover insureds post-policy. However, medical malpractice policies often lack this longevity.

Tail coverage is the add-on insurance that insureds can purchase at an additional price. This coverage will extend the time frame of the policy and cover the insured for patient malpractice claims from the time of the policy.

When Tail Coverage Matters

Medical careers are no different from other careers—people will move cross-country for the right opportunity. If a medical professional moves states, changes their scope of practice, or takes a break from their work, their insurance policy will end. This is completely normal, but it does come with risks that many people overlook.

Moving Across State Lines

Each state has its own rules and regulations regarding medical malpractice insurance types, policy limits, and choices. Doctors crossing state lines will need new insurance but could still receive claims from their previous patients. In this case, tail coverage will decrease the risk that these past issues will follow the doctor to their new location. 

Changing Scope of Practice

Similarly, when a medical professional gets a promotion or changes their position, their scope of practice changes as well. Their policy should change to reflect the increased or decreased risk of malpractice. This often results in new insurance in which the old policy is no longer in effect. Tail coverage will keep patient claims during their previous role from damaging them now.

Ceasing Work for a Time

Doctors may take time off for childbirth, sabbatical rest, or retirement. In any of these cases, this person is no longer working and not paying for insurance due to their professional hiatus. The only issue with these cessations is the risk that past patients will level a lawsuit against them. Tail coverage provides peace of mind to new parents and retirees alike, making career choices easier to bear.

Knowing the fundamentals of medical malpractice tail coverage can help medical professionals manage their careers amid change. If you need to update your insurance policy or find new malpractice insurance for healthcare professionals in your area, reach out to our team today at Baxter & Associates. 

Medical misdiagnosis is a problem that affects both patients and healthcare professionals. Doctors and medical professionals are human, too, so errors can happen. Still, they can cause long-term injury to the individual patient and the entire industry. Here are three ways misdiagnosis affects the healthcare industry.

Patient Suffering and Cost

The primary effect of medical misdiagnoses is the consequences suffered by patients. Around 12 million Americans experience a diagnostic error every year, and most American patients will encounter a mistake at least once in their lifetime. Due to misdiagnoses and related complications, approximately 40-80,000 patients prematurely expire each year.

The unnecessary loss of life is the most significant injury, but many patients undergo unnecessary treatments and suffer due to a diagnostic error. Misdiagnoses can mean prolonged stays in hospital facilities, wasting hospital resources, and possibly damaging patients in the long term.

Loss of Patient Confidence

Doctors and healthcare professionals rely on their experience and education to make educated decisions about patients’ health. When medical professionals make mistakes, patients lose their confidence in their doctors and medical treatment in general. It’s common for patients not to trust the future diagnoses of other doctors or avoid seeking medical opinions and treatment altogether after experiencing a diagnostic error.

A medical misdiagnosis can have a ripple effect on the patient and their family. Due to a loss of faith of medical professionals and the industry, some patients will seek self-treatment, leading to further injury. Even with the occasional mistake, it’s always better for patients to seek a professional medical opinion and treatment options instead of attempting to treat themselves or ignore their medical problems altogether.

Financial Industry Cost

Diagnostic errors have an individual impact on the patient and the healthcare industry as well. Recent estimates say that 30% of annual healthcare spending, approximately $750 billion, is wasted on unnecessary services and other treatment inefficiencies resulting from misdiagnoses.

Healthcare facilities are less efficient and productive due to medical misdiagnoses, which leads to wasted resources. It also leads to more insurance claims, so medical practice liability insurance is crucial for many healthcare facilities and providers.

A diagnostic error has many ramifications, both to the individual patient and the healthcare industry. There are many ways misdiagnosis affects the healthcare industry, but the primary injuries are to the patients and their families and the healthcare professionals who waste resources and time due to error.

There’s no doubt that it’s been a challenging couple of years for everyone in the healthcare industry, and the trend is likely to continue in the near future. With hospitals at capacity and nursing staffs low on personnel, malpractice litigation can pose a problem for many nurses. To help, we’ve collected the best advice on how nurse practitioners can avoid malpractice lawsuits.

Foster a Positive Relationship With Your Patient

The most important advice we can offer to nurse practitioners for avoiding litigation is to foster a positive relationship with their patients. We understand that it’s challenging to be a nurse in overcrowded hospitals, but taking time to be present and positive with your patients will pay dividends. Mistakes generally happen from nurses trying to rush services and procedures, so remember to take your time and be there for your patient.

Don’t Be Rude

There’s an old saying from lawyers that if you don’t want to get sued, don’t be rude. Nursing is a demanding job, and when you’re at the end of a long shift, it can be easy to be curt to a patient. However, it’s always better to stay positive in the long term. It may sound simple, but underestimating bedside manner is an important mistake for CRNAs to avoid.

Document Thoroughly

There’s a reason there’s so much documentation in healthcare, and it’s there to not only help you in providing the best care for your patient but to protect you in future litigation. Be sure to follow all documenting procedures and protocols as it keeps everyone on the same page, from nurses to doctors to patients.

The documentation shows all the methods, observations, tests, and results of a patient under your care and can be crucial in future legal proceedings. Also, if your patient and their friends or family have questions or concerns about treatment, you can refer to their documentation, where everything they need to know will already be there.

Stick To Facts Only

It’s common for patients to ask nurses for their opinion on their status or treatment. Even if you have plenty of experience and are 99% sure that your opinion is correct, don’t speculate and be sure to only stick to the facts. Speculation can lead to confusion which can lead to frustration and litigation. Let the tests and results speak for you instead.

Those are just some of the strategies on how nurse practitioners can avoid malpractice lawsuits, but there are plenty more. Professional liability insurance for nurse practitioners can help in the case of a malpractice lawsuit, but the best strategy is always to do what you can to avoid them altogether. The critical thing for nurses to remember is that a positive relationship with their patients is worth the time and energy and helps prevent future problems.

Contact Baxter & Associates today for an NP malpractice insurance quote or more information about what coverage you need.

Starting an insurance agency can be a great business, as it provides a necessary service that people need and helps them feel secure. Like any new business, though, starting your own is a challenge that requires tons of foresight. To learn more, read our guide on the six things to know before opening your own insurance agency to explore the obstacles you may face in starting your new business.

The Start-Up Costs

The initial start-up costs of any business will be heavy and require a significant amount of capital, and an insurance agency is no different. Every person and company will be different, but a new agency is generally going to require at least tens of thousands of dollars.

Most people don’t have that kind of money lying around, so the vast majority will take out a business loan. But, before you can acquire a business loan, there’s a thorough application and vetting process you’ll have to go through. To receive a loan, you’ll need a good credit history, likely some reliable work experience you can offer, and a well-researched and written business plan.

Do you have all of those qualifications for securing a business loan? Be sure to think long and hard before you begin to plan for a new insurance agency. There are other ways to secure funding like grants and crowdfunding, but those aren’t as reliable and secure as a business loan.

The Needed Training and Licenses

Before you even think about starting your agency, you’ll need to have all the necessary training and licenses. Depending on where you’ll be operating, you may need to take different courses to acquire the required education and licenses. In general, most states require about 40 hours of insurance education and about 12 hours of ethics training.

Keep in mind that these courses are not free and will take time. Once you’ve completed the required courses, you must take the license certification examination. Once you’ve passed, you’re then able to operate and sell insurance legally.

What Is a Business Plan?

An essential step in creating your new insurance agency is researching and formulating your business plan. A well-made business plan helps you secure a business loan and acts as a roadmap for an initial couple of months and years of your agency.

A business plan should be a map for your business, documenting key aspects such as who will be involved in the agency, your strategy for attracting customers, your target market, your competitors, your initial budget, and much more. But there are plenty of other vital questions a business plan should answer, such as:

What Will Be the Legal Structure of My Agency?

The legal structure of your new business is the foundation of everything else. You can structure your agency to make yourself the sole proprietor, which is the simplest structure but will make you personally liable for business debts. You can also choose to structure as a Limited Liability Company (LLC), limiting your liability.

Research and weigh the pros and cons of each potential legal structure before you make such a weighty decision, especially when it comes to taxes.

Will I Buy a Book of Business or Start Fresh?

There are two ways to begin a new agency: You can buy an existing book of business from another agency, which gives you a starting list of clients, or you can start fresh and attempt to build your book of business.

An existing book will help you hit the ground running but be wary of why the agency is selling it and compare it with other available lists for a fair market value. Starting fresh will force you to build your clientele and network from nothing, which will take longer and require more investment in departments such as marketing. But your clients are likely to be more reliable and loyal to your agency.

What Insurance Will I Specialize In and Sell?

Another critical question to ask yourself is what kind of insurance your agency will sell. Will you be a commercial auto insurance agency or a medical malpractice agency? If you’re buying an existing book of business, you’ll want to know your specialty beforehand.

In your business plan, you’ll want to explain why you’re choosing to sell the insurance you picked, who your competitors are, and what the market is currently for the local area. Once you’ve got your foundation, you can continually expand your business to other places.

You Can Join a Cluster or Go Solo

Before you begin your agency, consider whether you want to be out on your own as a solo agent or to join with an association of several independent insurance agents, known as a cluster. Both ways have their advantages: There’s strength in numbers and can open doors to more prominent insurance companies, but you likely will have to pay an initiation fee which could limit future opportunities.

The Many Permits for Operating a Business

It would help to familiarize yourself with the many permits and licenses required to operate a business before you do anything. You’ll need to apply for local, state, and federal permits, so be sure you know which ones your agency needs, how to get them, and how long it will take.

To register and obtain the proper permits, you’ll need a company name and tax ID number. Your company name should be simple but unique and easy to find. Your tax ID number is the employer ID number you will use for your taxes and is required for opening a business bank account.

It Could Take Years Before Your Agency Is Profitable

It’s crucial to remember that an insurance agency, like any new small business, will take time and investment before it returns a profit. Every person and company is different, but the general benchmark is two years before owners see a return on their investment. Do you have the resources to go two years without a reliable monthly profit?

Insurance for Your Business Is Crucial

Because new businesses are so volatile, you must protect yourself and your business. That’s why insuring your agency is critical. You’ll want a Business Owner Policy, which combines business property and business liability, and Errors & Omissions insurance, further protecting against losses not covered in the Business Owner.

Starting a new insurance agency is a significant endeavor that requires mountains of research, education, and paperwork. What’s most important, though, is your commitment and investment in your agency. Now that you’ve got the gist of what to know before opening your own insurance agency, what will your agency look like?

Starting a chiropractic practice can be a daunting and intimidating task, like starting any business. Becoming an entrepreneur is exciting but can lead to disaster if you’re not prepared. We want to make sure you’re ready to start your new practice. Before you make any decision, read about these four factors to consider when starting a chiropractic practice.

What To Practice & Where To Do It

First, what do you want to practice, and where do you want to do it? If you’ve decided what scope of the chiropractic profession you want to practice, do some research on the laws for that scope in the state you want to practice in. Different states have different regulations and requirements for the chiropractic profession, so consider that before you choose where you want your practice located. Conduct some demographic research on the city or town you want to open in. What’s the average income of your expected patients? What care do they have access to? There’s no such thing as too much research!

Start New or Buy an Existing Practice?

What makes more sense for you: starting from scratch or purchasing an existing practice? If you want to begin from the ground up and be involved in every decision of your business, you probably will prefer a brand-new practice. But you could save on start-up costs by purchasing an existing chiropractic practice. If you know the practice is successful, there’s less mystery about if the business can succeed, and you likely have a built-in client base. You can make it uniquely your own through changes, but you can still purchase crucial business momentum and skip the initial steps of starting from nothing.

What Do You Know About Running a Business?

You could be the best chiropractor ever to live, but that’s only part of why your practice will succeed or fail as a business. Do you know how to bill patients properly or how to market yourself and a business? Do you know where to get proper insurance like chiropractic malpractice insurance? Many students start as associates for existing practices to learn the profession and save money before starting their practice. If you’re unfamiliar with the particulars of running a business, perhaps that path would work better for you.

The Initial Financial Burden

As with any business, starting a chiropractic practice demands a sizeable financial commitment. The start-up costs especially are high, so before you begin planning your new practice, make sure you’re aware of the sacrifices you’ll have to make initially. A brand-new practice means a hefty investment up-front. Even if you choose to buy an existing practice, you’ll likely have zero net income for months, if not years. Are you prepared for that financial burden? Be sure you can accurately answer that question before committing to anything.

Starting a chiropractic practice takes a lot of time and involves a certain amount of risk, like starting any new small business. These are just four factors to consider when starting a chiropractic practice, but there are many, many more. Keep reading Baxter & Associates blog for more advice and information about health care, business, and the law.