Are you a doctor or an engineer? Professional practices need the same types of insurance as any other business for property, workers compensation and vehicles. Many professionals view professional liability insurance as an even more critical coverage. Professionals are concerned that in today’s litigious society, every mistake, suspected mistake or incident of client or patient dissatisfaction can lead to a lawsuit. Professional Liability Insurance protects them from the potentially ruinous economic consequences of this risk.
For many specialties, the most cost effective and efficient way to obtain property and liability coverage is with a specialized Businessowners Policy (BOP). Insurers have put together combinations of coverage specifically tailored to the needs of physicians, architects, accountants, attorneys and many other practices. These policies typically have provisions similar to the property insurance and liability insurance sections of the BOP.
Property insurance
A package policy covers real estate and other property your business owns. If your practice rents or leases its premises, the policy provides coverage for tenants' improvements and betterments. These are fixtures, alterations, installations or additions that you have put into the space that cannot legally be removed from the landlord’s premises.
The policy will probably include two coverages that are often critical for business recovery after a disaster: Business Income and Extra Expense Insurance (also known as Business Interruption Insurance). Business Interruption Insurance helps pay ongoing expenses while your business is unable to function after a loss and also helps make up for lost profits. Extra expense coverage helps you recover as quickly as possible by paying extra expenses caused by the loss—such as rent for temporary quarters.
With electronic data playing such an important role in business today, the policy will likely include such coverage as Computer Operations Interruption Coverage to pay for business income lost and extra expenses incurred as a result of computer problems. Electronic Data Loss Coverage pays the cost to replace or restore electronic data destroyed or damaged as the result of causes of loss named in the policy. These include a computer virus or harmful code. As needed, you can add even more coverage through endorsements. You should discuss your needs with your agent.
Coverage can easily be added to these policies for such items as special equipment, fine arts, valuable papers and records, and accounts receivable.
Professional practices should also consider adding Employee Dishonesty Insurance Coverage to protect against theft by their own employees.
