Are You Guilty of These 4 Common Insurance Mistakes?
Read on to learn about some of the most frequent insurance mistakes that we see veterinary hospital owners make with their coverage portfolios.
Mistake #1: Your limits are too low
Consider this scenario: Your hospital is destroyed by fire and the new construction lasts more than seven months. The loss revealed that the policy limits for the structure, property, and business interruption were too low to adequately rebuild without incurring out-of-pocket expenses. While the policy will cover some of the bill, you are on the hook for the remainder of the rebuild expenses.
Many owners underestimate the value of their property and equipment (including the cost of purchasing new equipment after the hospital’s last evaluation). Make it mandatory to annually reassess the value of your hospital’s equipment and supplies, and make sure to secure coverage for spoilage of perishable and biological property and property in-transit.
Not sure how much your equipment is worth? The AAHA Business Insurance Program team members specialize in veterinary business insurance and can provide you with suggestions on determining appropriate limits for your hospital and equipment.
Mistake #2: You do not have employment practices liability coverage.
Consider this scenario: A former employee filed a lawsuit against the hospital alleging age discrimination. In the suit, the employee alleged that they were terminated for being over the age of fifty. Defending against the lawsuit incurs legal fees, and possible settlement fees.
Every hospital owner faces exposure to employee allegations of discrimination and harassment lawsuits. The AAHA Business Insurance Program offers a stand-alone employment practices liability policy, which will respond to employment-related claims
Mistake #3: You do not have a flood insurance policy
Consider this scenario: Your building and interior (carpet, flooring, walls, equipment, electrical, and plumbing systems) are damaged after a body of water overflows and floods the hospital, resulting in nearly $20,000 in damages. Your business owner’s package does not cover this loss.
Only a flood insurance policy provides adequate protection from loss or damage caused by a flood. Your hospital is more susceptible to flood damage than fire, and flood coverage is relatively inexpensive.
Mistake #4: You do not have business interruption coverage
Consider this scenario: Your hospital closed for two weeks for repairs after a covered loss. Typically, the hospital revenue for a two-week period is $34,000. The loss of these profits has put the clinic in financial risk.
If you were unable to treat patients during a temporary hospital closure, how much would you lose in profit? The AAHA Business Insurance Program’s business interruption insurance will protect you in these instances.
Don’t wait until you experience a claim to discover that you are not adequately insured. Call the AAHA Business Insurance Program today at 866-380-AAHA (2242) for an evaluation of your insurance portfolio.