Estimates suggest two out of every three small and medium businesses are significantly underinsured, which could lead to financially ruinous results if a large claim was to occur.1
What does this mean for you?
In our experience underinsurance manifests itself in 3 primary areas for medical and dental practices:
- Insufficient business interruption insurance (covering lost revenue, profit and additional costs following a material damage claim)
- No, or inadequate, medical or dental indemnity insurance for the practice (as opposed to individual medical or dental indemnity insurance held by you) and
- No management liability insurance (which includes cover for claims made against directors, officers and other management by regulators, creditors, and past or present employees).
In addition to this, have you considered:
- Equipment breakdown insurance, especially if your medical equipment is out of warranty and
- Whether your insurance is structured correctly given your different business entities? This is especially important if your superannuation fund owns your practice property, but you have a service entity for your operating business.
How we can help
Experien Insurance Services focus exclusively on the medical and dental professions and have developed a deep understanding of specific risk exposures for your industry, and the insurance solutions that can best address them on a cost effective basis.
1 The report “Non-Insurance in the small to medium sized enterprise sector” is available on the Insurance Council of Australia website. It estimates that 2/3 of small and medium businesses are underinsured.
