These five comparatively unknown insurance coverages can save you thousands (or more) of dollars. And they aren't very expensive.
Almost everyone recognizes the need for certain basic kinds of insurance protection like automobile, fire and malpractice. Many doctors, though, overlook other coverages that may be just as important. Here are five kinds you should check.
1. Accounts Receivable Insurance. This is basically fire insurance extending to the value of your receivables. If a fire wipes out your financial ledger cards or your computer data (unless you have back-up stored elsewhere), the coverage is a godsend.
2. Business Interruption Policy. Basic fire insurance does not compensate you for lost income after a burnout leaves you with no office in which to practice. We know doctors who were financially rescued by a special business interruption policy covering this loss until they could work in temporary quarters.
3. Non-Owner Auto Coverage. When a staff member drives a personal car on practice business to the hospital, for instance you may be liable for any damages suffered in an accident. With an inexpensive rider to your auto or general liability policy your
practice can avoid potentially huge losses above your employee's personal auto coverage.
4. Excess Liability Policy. Most auto home-owners and office liability policies have a maximum exposure of $100,000 or $200,000 per incident. Lawsuits these days often involve claims running into seven digits. A relatively inexpensive "umbrella" policy adds
$1,000,000, $2,000,000 or more of protection on top of your normal policies.
5. Fidelity Bond. Embezzlement occurs far more often than doctors like to believe. If it happens to you, the odds of recovering upon discovery are slim. A fidelity bond covering employees handling finances helps you recoup the loss. It's also helpful because the insurer handles dealing with the wrongdoer.