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Non-Emergency Medical Transportation - What You Need to Know

Non-Emergency Medical Transportation - What You Need to Know

Over the past few years, Non-Emergency Medical Transportation (NEMT) risks have become a popular start-up operation for many entrepreneurs. The appeal of NEMT businesses, at first glance, is the low cost of entry into the marketplace. Many operate with their personal sedan or minivan, no special driver license required, insurance coverage was easily accessible, and the service was in high demand.

Also, over the past few years as popularity has increased, so have the insurance requirements. Some of the first things I ask agents when submitting these accounts is:

  • Who is the insured working with to obtain their rides?
  • Can you obtain a copy of the contract?

The trend of increasing insurance requirements has hit most classifications of transportation-related businesses, and NEMT risks are no exception. The requirement for specific covered auto symbols, additional coverages, and other provisions required to operate will be spelled out within the contract and it will provide us a running start to correctly writing the account.

Common examples of requirements is for the coverage to be written on either Symbol 1 (Any Auto) or Symbols 2, 8, & 9 (All Owned, Hired, & Non-owned Auto). Our carriers traditionally write these policies as a Symbol 7 (Scheduled Autos) but are willing to consider writing them with Symbols 2, 8, & 9.

They require a copy of the contract and an additional application for the Hired and Non-owned Auto to consider these. Other things to look for contained within the contract are the Additional Insured requirements which can contain requirements for multiple entities, waivers of subrogation, and notice of cancellation requirements.

So, the next time you have a submission for a NEMT risk, ask what coverages are required in the existing or potential contracts, and get the jump on getting your insured the coverage they need.

Posted by Matt White, Commercial Auto on May 11, 2021