According to statistics published by the American Hospital Association, there are about 6,100 registered hospitals in the United States, with a total of more than 920,000 staffed beds.
Some of the most expensive construction projects today are hospitals and other healthcare facilities. Security and protection of hospital infrastructure, with its large campuses, sophisticated and costly medical equipment, and integrated IT, mechanical and electrical systems, is critical to safe and continuous patient care.
Damage to or destruction of The Hospital Built Environment by covered perils such as weather-related events, fire, vandalism or theft can impact the financial stability of owners and shareholders and may also directly or indirectly affect outcomes for patients, staff and the surrounding community.
Hospitals (Large Property) Insurance helps protect large health systems and standalone hospitals by providing coverage for physical loss or damage to buildings, contents and inventory caused by named perils, and can also include third-party premises liability coverage for claims alleging bodily injury or property damage occurring on insured hospital premises.
What is Hospitals (Large Property) Insurance?
Hospitals (Large Property) Insurance is a specialized form of commercial property insurance designed for large healthcare organizations. It is built to address the unique risks of complex hospital campuses, including acute care hospitals, specialty facilities, outpatient centers and administrative buildings.
Policies are typically customized to reflect the size of the organization, the types of services provided and the value of buildings, equipment and other physical assets.
Who needs this coverage?
Hospitals (Large Property) Insurance is generally appropriate for:
- Large health systems with multiple hospitals and satellite facilities
- Standalone community or regional hospitals
- Academic medical centers and teaching hospitals
- Specialty hospitals, such as cardiac, orthopedic or pediatric facilities
- Behavioral health and rehabilitation hospitals with significant property exposures
What it typically covers
While every policy is different, Hospitals (Large Property) Insurance may include coverage for:
- Buildings and structures – Main hospital buildings, clinics, parking structures and other owned facilities.
- Medical equipment – Imaging systems, surgical and diagnostic equipment, laboratory instruments and other high-value devices.
- Contents and inventory – Furniture, supplies, pharmaceuticals and other movable property.
- Mechanical and electrical systems – HVAC, power, oxygen delivery and other critical infrastructure.
- Business interruption – Lost income and certain extra expenses when covered property damage disrupts operations, if included in the policy.
- Premises liability – Third-party bodily injury or property damage claims arising from conditions on insured premises, when premises liability coverage is part of the program.
Coverage terms, limits and options vary by insurer and by policy. Always review specific policy documents to understand what is and is not covered.
Common exclusions and limitations
Hospitals (Large Property) Insurance will not cover every type of loss. Common exclusions or limitations may include:
- Normal wear and tear or maintenance-related deterioration
- Mechanical breakdown, unless specifically added by endorsement
- Flood, earthquake or other catastrophic perils, unless separately scheduled
- Intentional acts or dishonest conduct by insured parties
- Cyber incidents and data breaches (typically addressed under separate cyber coverage)
Actual exclusions depend on the policy form and endorsements. Coverage details and requirements can vary by insurer and by state.
Factors that influence cost
The cost of Hospitals (Large Property) Insurance is influenced by several factors, including:
- Total replacement cost of buildings and structures
- Value and type of medical and technical equipment
- Location, including exposure to wind, hail, wildfire, flood or earthquake
- Construction type, age and condition of facilities
- Fire protection, security systems and risk management practices
- Loss history and claims experience
- Selected coverage limits, deductibles and optional endorsements
Proof of insurance and compliance
Hospitals are often required to show proof of property and liability insurance to lenders, investors, regulators and business partners. Certificates of insurance can help demonstrate that minimum coverage requirements in leases, loan agreements or vendor contracts are being met.
Insurance requirements can vary by state, by accreditation body and by contract, so hospital risk managers and administrators should review applicable standards and consult their advisors when evaluating coverage.
How to get a quote
To explore Hospitals (Large Property) Insurance options, organizations typically provide details about their facilities, property values, risk controls and loss history so that insurers can evaluate exposures and structure coverage.
To request more information or start a quote for Hospitals (Large Property) Insurance, please visit our online quote request form.
Frequently Asked Questions
What is the difference between Hospitals (Large Property) Insurance and standard commercial property insurance?
Hospitals (Large Property) Insurance is tailored to the unique risks of large healthcare facilities, including high-value medical equipment, complex building systems and potential business interruption exposures. Standard commercial property policies are not always designed for the scale and complexity of hospital operations.
Does Hospitals (Large Property) Insurance cover patient injuries?
Property coverage itself does not cover patient injuries. However, many hospital insurance programs include premises liability coverage, which may respond to certain third-party bodily injury claims arising from conditions on the premises. Professional liability and medical malpractice are separate coverages.
Are natural disasters like hurricanes or earthquakes covered?
Some weather events, such as wind or hail, may be covered if listed as named perils in the policy. Flood and earthquake are often excluded or limited and may require separate policies or endorsements. Coverage depends on the specific policy and insurer.
How are coverage limits determined for a hospital campus?
Coverage limits are usually based on the estimated replacement cost of buildings and structures, the value of medical equipment and contents, and the organization’s tolerance for risk and deductibles. Insurers may request appraisals or detailed schedules of values.
Can coverage be customized for multiple locations within a health system?
Many insurers offer programs that schedule multiple hospitals and related facilities under one policy or master program. Limits, deductibles and endorsements can often be tailored to reflect the exposures of each location, subject to underwriting guidelines.
Still have questions? Talk to a local insurance expert.