It’s summer in New England, when hazy, hot and humid days conspire to erupt into rolling, violent thunder squalls.
Over the weekend, your practice gets hit by a thunderstorm and a lightning strike causes a huge power surge that overwhelms your installed protections. Your computer network, fried. Your expensive electronic diagnostic equipment, toast. Your cooling unit holding $100,000 in vaccines, a goner. Also, because the temperature of the vaccines rose to room temperature, those vaccines are not usable any longer.
You need to get the damage repaired, vaccines replaced, and the equipment up and running fast. What about your insurance? Are you covered?
A normal starting point would be to contact your insurance agent. But before disaster strikes it is important to review if your current Business-owners policy will cover loss to your computer equipment, vaccines, and medical diagnostic equipment that is damaged as a result of an electrical power surge. Sometimes, there are limitations. Also, will the policy pay the cost to replace that equipment with new items, or will the policy only pay the depreciated value of the damaged equipment? If you have on hand significant and valuable perishable pharmaceuticals, also ask the agent what the coverage limit is for spoilage as a result of a power loss or breakdown of the refrigerating equipment. The time to find out if you’re underinsured is before something like this happens, not after disaster strikes.
Richard Weston, CIC, is a Senior Account Manager at PIAM and has been with the company since 2002. He has been in the commercial insurance sector since 1988 and can assist with a wide range of insurance issues which physician practices face. If you have questions about insurance, or would like Richard to do a full review of your insurance policies and exposures, he can be reached at 781 434-7390 or by email at firstname.lastname@example.org.