As if the medical sector didn’t have enough to think about, businesses in this area also have many insurance issues to battle with, some of which are common to other sectors and some which are peculiar to them.  My involvement with dentists, doctors and other medical provision companies over the past 13 years has highlighted some of the more frequent misunderstandings and mistakes that can have a serious impact on their protection.  The more important ones are explained below.

Professional Malpractice

If a limited company is established, individual practitioners’ medical defence cover WILL NOT protect the company in the event of a claim against it.  Similarly, if nurses are used, their RCN membership no longer provides cover if they are employed – responsibility passes to the employer.

Sums Insured

In common with many businesses, it is easy to lose track of replacement costs, particularly for items that are not frequently renewed e.g. dentists’ chairs.  Sums insured should reflect the full replacement cost of all equipment and contents – Not doing so could mean a significant reduction in any claim payment.

Security

Most policies now have very specific requirements about the types of door and window locks in addition to sometimes requiring a particular alarm system and the majority of new clients that I visit do not meet these standards.  Putting them back on the right track means no nasty surprises!

Loss of Revenue v Additional Costs

Some policies only give cover for the costs that a business incurs in keeping going following damage e.g. increased rental costs, phone diverts and the costs of letting customers know about a new location.  A full loss of revenue insurance will cover these costs PLUS the drop in income following damage, enabling staff to be kept on and paid.

Failure of electricity

All businesses are more and more reliant on a constant supply and whilst most policies provide some cover for lost revenue, it may only be as a result of damage at the supplier’s own premises and NOT for damage that might occur to the cable coming to your client’s premises….which tends to be where the contractor cuts the cable!

Equipment taken off the premises

Many policies only cover contents whilst in the premises, so any laptops or other equipment taken home or to other locations would not be insured.

How we can help

We can offer:

• A free no obligation review of current insurance arrangements and a report on possible alternatives.
• Guidance on risk management issues
• Advice about the adequacy of security devices.

For more information, please contact me by email at aphillips@apinsurance.co.uk or call 01527 834696.