Just as you wouldn't treat a patient without a comprehensive diagnosis, you shouldn't run a healthcare practice without a robust insurance plan. Unexpected events, like a patient injury or a data breach, can happen at any time. The right insurance acts as a curative measure, protecting your practice's financial health and providing peace of mind.
Business Insurance
Having the right business insurance in place is essential for any business owner. It’s your safety net, protecting against all sorts of risks – from damage to your equipment and assets to covering legal liabilities.
Offered as a flexible package, business insurance lets you choose the policy sections that best fit your needs. Some essential components include Property, Product Liability, Business Interruption, Theft, Glass and Electronic Equipment/Machinery Breakdown.
Why it matters: Imagine a fire damage your office, destroying equipment and halting operations. Business insurance covers repair/replacement costs, lost income during downtime, and even employee wages, preventing a complete financial disaster.
Practice Indemnity Insurance
Often mistaken as being covered under an individual’s policy, practice indemnity protects your entire practice, including staff. It’s important to include this in your regular insurance review, as your practice and staff are the key to your business’ operations.
Why it matters: This protects your practice from claims arising from errors, omissions, or negligence by your staff. For example, if a patient suffers an adverse outcome in their treatment or has their privacy breached due to a staff member's mistake, this insurance covers legal fees and potential settlements, safeguarding your practice's reputation and finances.
Management Liability
This protects directors and officers from risks like wrongful acts, employee practices liability (such as unfair dismissal, harassment), and statutory liability, including breaches of WHS.
Why it matters: It matters because as a director or officer of a healthcare practice, you're personally liable for the decisions made within your business. This means your personal assets are at stake if something goes wrong.
Cyber Insurance
Practices are prime targets for cyber-attacks due to the sensitive information they handle. Cyber insurance provides vital support, covering business interruptions, privacy breaches, extortion, and legal or forensic assistance.
Why it matters: Data leaks are no longer hidden in the dark corners of the internet. They're now in plain sight, with sensitive personal and financial information being exposed on social media and cloud storage services, making identity theft easier than ever. This alarming trend poses a significant threat to businesses, as a single cyberattack can have a profound negative impact on your reputation, eroding customer trust and potentially leading to financial losses.
When setting up your coverage, it’s best to work with a licensed adviser who can provide personal advice tailored to your specific needs. Personal advice goes beyond general recommendations and considers your unique circumstances and risk factors.
Are you interested in a review of your practice or personal insurance coverage to ensure you’re fully protected? Speak to one of our insurance advisers today for personalised advice.
Andrew is the Director of Cutcher & Neale’s General Insurance division. He has been an advisor in the industry for over 20 years ensuring his clients have the best value and personalised coverage possible.
Andrew has worked in many areas of insurance, including domestic and international brokering. His specialties cover personal and business insurance, medical professionals, residential and commercial real estate, sports, and construction.
