Layers of specialty liability insurance are a vital part of your risk management and asset protection plans.
As the coronavirus continues its rampage across America, the risks medical practices and their owners face have evolved. Here are nine liability insurance issues to examine as a vital part of your asset protection plan.
We’ve covered a variety of COVID-19 related risks since early this year starting with a macro-level look at economic burdens a pandemic can create. We then examined recession survival strategies, the increased level of professional risk the virus brings in crisis conditions and the value of waivers against corona virus infection liability claims. As we’ve discussed consistently here for years, layers of specialty liability insurance are a vital part of your risk management plan and, when done right, one of the most predictable and cost-effective forms of asset protection available. Unfortunately, many physicians still don’t review and understand the details of their coverage until there’s a crisis.
Here are nine specific areas of coverage to review with an experienced commercial insurance agent now, while it can still make a difference. Remember, insurance is often a system of overlapping layers of all the right kinds of insurance to the right amount. Your plan may require multiple separate specialty liability insurance policies, not just a single policy with high limits.
I ran this list by commercial insurance expert David Moore, of Shepherd insurance in Scottsdale, AZ, and asked for any comments or additions. Moore said that there is often a dangerous disconnect between the officer manager or another employee that has drilled down on the details of required insurance coverage with an experienced insurance agent and the practice owner, who wasn’t part of the meetings and who is primarily looking at the costs without the full benefit of understating all the benefits. This leads to important coverage being omitted altogether in some cases or inferior policies being purchased on price alone without regard to very significant differences in what may actually be covered between two policies.
In particular, Moore mentioned that he continues to see a pattern of under-insured exposures in the areas of D&O and EPLI insurance and price resistance among practices that may be facing significant financial challenges.
While those pressures are certainly real, any one additional uninsured exposure from the list above could be the final straw for a struggling practice as litigation defense costs alone can easily be six figures.
Ike Devji, JD, has practiced law exclusively in the areas of asset protection, risk management and wealth preservation for the last 16 years. He helps protect a national client base with more than $5 billion in personal assets, including several thousand physicians. He is a contributing author to multiple books for physicians and a frequent medical conference speaker and CME presenter. Learn more at www.ProAssetProtection.com.