As a new clinic, spa or studio owner you are a full-fledged business. You may even have other professionals working for you. This is a huge accomplishment, and you should be proud of all your hard work. Do you have the correct clinic insurance?
Growing your business beyond that of an individual practitioner also means that you have outgrown your individual liability policy. Owning and operating a full commercial business requires the right protection. Above all, we want to make sure that you have all the information required to make smart decisions about protecting your business!
Unfortunately, it is not uncommon that we see clinic, spa or studio owners who do not have the proper insurance coverage in place for their business. As a result, we have seen business owners forced to close their doors. This is a due to expensive claims or lawsuits that have occurred against their business entity, which they had no coverage for.
This does not necessarily mean these business owners are irresponsible or neglectful when it comes to their clinic. In many cases, practitioners are unaware of the additional exposures that come with running a full commercial business. As a leading clinic insurance provider in the industry, we insure hundreds of clinics and spas. We have seen a number of claims which reflect the need for full insurance coverage.
Please picture the following example. As the owner of a multi-disciplinary clinic, you believe it to be valuable to employ or sub-contract a variety of practitioners. Each practitioner has a different area of expertise and training. Therefore there is an added insurance risk associated with increasing the number of practitioners working under your business entity.
Therefore every practitioner would be responsible for carrying their own individual liability insurance (to cover claims resulting from their negligence or liability). It is important to note that their individual policies are not designed to cover the clinic owner or the clinic’s entity should the clinic itself be named in a lawsuit. Neither is your individual policy designed to extend coverage to your employees, sub-contractors or business partners. As a clinic owner, you would require separate professional & commercial liability, as well as legal coverages for the business entity.
We have seen several claims where a clinic’s entity and its owner(s) have been sued for the negligence of one of the other practitioners in the clinic. Furthermore, the other practitioners do not have to be employees or even sub-contractors. They may simply be renting a room from within the clinic to conduct their own practice. Your business name is on the door. Your name is on the lease. In other words, your business is exposed.
In a claim situation, this could merely be a matter of hiring a lawyer to have your name removed from the lawsuit or proving that the actions of the individual practitioner in question do not reflect the clinic itself. However, this process can take up to weeks or even months of lawyer bills just to defend you. As a small business owner this could be detrimental. You want to be sure that you possess an insurance policy which will respond in such situations.
Call our office for a full commercial business quote today (1-800-265-2625). Alternatively you can email at firstname.lastname@example.org if you have any questions about your business.