In recent times there have been many cases of bond fraud happening in all areas of the United States. It is important that you research any company that offers bonds to ensure that they are legitimate and are able to provide you with the right cover for your business.
You should find a large company to provide your bond. The larger companies have a better reputation and more experience in being able to provide a bond that suits all areas of your business. The name of the company you choose to provide your bond is also a good indication to those that you work with that you are a trusted and reputable business, as many bond issuers will not provide surety for organizations that do not meet the high standards as set out in the screening process.
The key function of a health care professional bond is to assist in preventing cases of Medicare and Medicaid fraud. Bonds for this are a legal requirement for any business that processes claims through these organizations. If your business was found to be making fraudulent claims to Medicare or Medicaid, your bond would be forfeited to local government agencies and your bond company would come to you for reimbursement of the debt.
Bonds are not like insurance, rather a loan to protect the government, your wholesales and clients from you or any of your employees behaving in an unethical manner that causes financial distress. The bond is set up to ensure that should any of this kind of behaviour be discovered, that you have the funds available to take care of the ramifications.
One of the biggest advantages of having a bond through a broker is that if a claim is made against your bond due to accusations of negligent or unethical behaviors, your bond broker will investigate this claim to the full extent possible before deciding either to pay a settlement or to pursue a claim that they feel to be false to court. Your bond broker will also help to provide you with advice and evidence should you go to court to dispute any accusations. If you were to provide the bond yourself in a bank to save annual fees you would not get this support.
Being a bonded business you should also find that many more companies are willing to work with you in all areas. Your patients and wholesalers know that you have the bond, meaning that should any issues arise in doing business with you, that they are covered for any kind of financial loss that they may suffer.
Bond premiums and cover amounts can vary dependent on the type of care your business provides, the amount of employees as well as the results of a background and credit check that will be performed during the application process.
Because your health care professional bond is not insurance, you will still need to have public liability insurance as well as any other types of insurance required by law in your area. Your bond does not cover any kind of accidental damage that may occur; this will need to be covered by your insurance. Your bond is to cover all purposeful negligent or illegal acts that may be performed within your business, whether it is you that commits these or your employees.