Today’s Veterinary Business provides information and resources designed to help veterinarians and office management improve the financial performance of their practices, allowing them to increase the level of patient care and client service.
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20 Today's Veterinary Business Business decided to hire a veterinarian with both clinical experience and a na- tional perspective of the veterinary industry to lead the program. Inadequately Insured Consider taking two simple steps to determine if you are underinsured. Let me provide examples. A California veterinary hospital owner was referred to me after her practice suffered severe roof damage during heavy winter rains. She expected the landlord of her property to cover the damage. Unfortunately, the veterinarian was engaged in what's called a triple net lease agreement, which required her to cover not only the rent and utilities but also the build - ing insurance. To her dismay, she was unprotected for this loss and forced to cover the repairs. Step 1: Determine your expo- sures and liabilities. Some expo- sures are obvious and some are not. Since many of your exposures and liabilities are unique to the veteri- nary profession, I recommend you You should talk to your insurance agent before every policy renewal and conduct a global insurance and risk- management review of your business. Likewise, do this anytime you are considering a major purchase or change to your practice. Business PROTECT & DEFEND Do You Have Enough Coverage? One of the best ways to evaluate whether your practice is adequately insured in this ever-evolving business and legal climate is to think about what's most important to you. For example: • Your reputation. Do your employees enjoy coming to work every day? What happens if one alleges discrimination or sexual misconduct? Do you have employment practices liability cov- erage, and how will it help keep your business intact and your reputation protected? • Data, data, data. Hardly a day passes with- out the news of a cybersecurity event. Are you responsible for keeping your data secure? What if an employee or hacker steals your clients' infor- mation or credit card numbers while transmitting electronic payments? Understanding cyber lia- bility and network security coverage and proper protection protocols could help you prevent a cyber-related situation. • Your facility and equipment. Are you in an area prone to earthquakes, hurricanes, snow storms or other inclement weather? What happens if your hospital is damaged? How about your equipment and supplies? Understanding how to insure your property, meet your contractual obligations and address exposure to local geographic perils is critical to making sure you are adequately protected. • Your transportation. The use of company- or employee-owned vehicles for business purposes creates a major liability exposure. Having a detailed plan to manage this exposure is a critical compo- nent of any hospital's risk-management strategy. • Your staff and budget. Accidents happen. As a strategy to provide timely medical care and pre- vent legal squabbles, most states require busi- nesses to carry workers' compensation insurance. However, for many this line item represents one of their largest monthly overhead costs. What steps can you take to minimize this expense? • Your license, and again, your reputation. The delivery of veterinary medical care is not an exact science. Mistakes will happen. While some clients will be more forgiving than others, it is important to understand how to protect yourself and your practice against those that are not so accepting. Over the years I have seen many sides of the veterinary medi- cal profession. In upcoming issues of Today's Veterinary Business, I will share real-life examples of others who have walked in your shoes — the ups, the downs and everything in between.