Question of the Week

I just got sued. Am I covered for the acts of my Medical Director? Could there be some employees who are not insured?

ANSWER: It is very possible that you may not be covered for the acts of your medical director. The language in most policies restrict coverage for medical directors to administrative duties only.

If your medical director is actually involved in patient care, you need to be sure coverage is added to your policy.

Even if the medical director has other insurance, it may not extend to his / her activities while working for your company.

Types of Coverage Available
There are 5 basic categories of insurance coverage you can purchase. Understanding these allows you to make important business decisions.

Below are listed each of the main categories, and information about each. If you need more information than what we present here, please contact us and we will be happy to answer any questions you may have.

  Professional & General Liability Insurance
 When you think of Liability Insurance, you need to think of a claim for Bodily Injury or Property damage for which you are legally liable.
  Employment Practices Liability (EPLI)  / Directors & Officers (D&O)
 This provides protection from claims against you from stockholders and employees. Coverage includes Wrongful Termination, Sexual Harassment, Discrimination and more. 
Business Property
Provides protection for loss or damage to furniture, fixtures, equipment and other property owned by your company from fire, theft and other types of loss.     
Worker's Compensation
Regulated by statute, workers compensation coverage provides benefits for loss of wages and medical costs sustained in "on the job" injuries. While this coverage may seem simple, many aspects require careful attention.  
Employee Benefits
One major way to attract and retain valuable employees is to offer quality employee benefits. While we stay within our specialty field of Property & Liability, we work with others who specialize in Employee Benefits.

 

 

 

Cost Effective?

While it is a good idea to watch your expenses, and not pay too much for your insurance coverage, there are a few things to remember:

"Defense" Coverage can be the greater part of a claim. Remember, the insurance company will assign you an attorney, and expenses begin immediately - even if the lawsuit is eventually reduced, or dropped. Insurance policies speak directly regarding defense coverage. Check if defense is "Inside" the limits, or "outside" the limit. The difference can be substantial - and certainally worth a few extra dollars of premium.

If you have a budgeted amount for insurance, you may want to consider "self insuring" for your property insurance (fire, theft, etc) and using the premium you save to purchase an "excess liability policy". For the money you would save covering $50,000 of property, you might be able to purchase an additional $1,000,000 coverage over all liability coverages.