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Medical Payments Coverage: The Business Owners Guide

Insurance Basics

What is Medical Payments Coverage?

Medical Payments Coverage, also known as MedPay, covers expenses related to injury or damage that happens on the insured’s property or as a result of their operations. It applies irrespective of who’s at fault. I.e. even if your business isn’t liable for the incident, your medical payments coverage will still pay out to cover qualifying costs with no deductible. 

It serves as a quick solution to cover immediate medical treatment or property repair costs without the delay of initiating a full insurance claim. That’s why it’s often seen as “goodwill coverage” because it helps in preserving business relationships between the insured and their customers by covering immediate medical costs, instead of resorting to potentially damaging litigation.

It’s primarily designed to cater to injuries suffered by the general public. However, it’s important to note that certain categories of individuals are excluded, which we’ll break down in this post. 

Medical Payments Coverage: What’s Included?

The scope of coverage is limited and only pays reasonable expenses for:

  • First aid administered at the time of an accident
  • Necessary medical, surgical, x-ray, and dental services, including prosthetic devices
  • Necessary ambulance, hospital, professional nursing and funeral services

There are also a wide range of exclusions from the coverage:

  • You as the policyholder
  • A person hired to do work for or on behalf of you
  • Tenants – a person injured on the part of the premises that you own or rent that the person normally occupies
  • Injuries where worker’s compensation, disability benefits law, or similar laws apply
  • Injuries that occurred during athletic activity
  • Injuries due to acts of war or terrorism

How much does MedPay cost?

Costs can vary depending on your coverage limit. 

At Assureful, it’s included in our commercial general liability insurance as standard, so there are no extra costs involved. 

What is the Limit on Medical Payments Coverage?

Typical limits for MedPay coverage are relatively low, usually between $1,000 – $15,000 per person. So you can expect around $10,000 to be the most common limit.

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Yes, Your Assureful Policy Will Include Medical Payments Coverage

Does Assureful offer medical payments coverage?

All of Assureful’s commercial general liability insurance policies include medical payments coverage for medical expenses relating to bodily injuries caused by an accident on your premises. You can find a full breakdown of inclusions and exemptions in our sample policy document.

What is Assureful’s medical coverage limit?

At Assureful, our limits are typically set at $10,000 per person. However, this can vary from policy to policy. For full details on your specific coverage limit, check your COI once received.

Does a medical payments payout mean the injured party can’t take further action?

No. It’s important to note that payments under MedPay don’t typically require a liability release from the injured party. This means that they can still pursue a lawsuit if they wish.

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