Today's Veterinary Business

FEB 2018

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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26 Today's Veterinary Business Business The result of this enhanced scrutiny is that most insurance policies exclude the perils of earth movement and floods. The ex- clusionary language and extent of coverage provided in standard property and liability policies can vary significantly, often to the detri- ment of the policyholder. In the last two years alone, heavy rains have inundated wide stretches of communities — from California, Louisiana, Maryland and Missouri to Oklahoma, Texas, Utah and West Virginia — leading to tens of billions of dollars in damage. Each event represents a stark reminder of the long-term destructive effects that floodwa- ters can have on our personal and business lives. Across many parts of the United States, unrestrained property development in flood- prone areas is accelerating faster than flood-mitigation efforts. One can anticipate that as new veterinary facilities sprout up to service these new communities, more practices will experience the costly toll of flooding. Residential properties are frequently the most publicized victims of flood. However, for owners and managers of veterinary facilities, the damage can be just as devastating. Flooding can result in catastrophic, out-of-pocket expens- es because standard commercial property insurance policies are not usually structured to cover the resulting damage associated with the peril. Furthermore, the majority of veterinary business owners pur- chase flood coverage to satisfy lender requirements only. Absent specific flood coverage, their build- ing, tenants' improvements and bet- terments (TIBs) as well as business or personal property (contents) losses are not typically covered. Here are a number of flood- related challenges that veterinary businesses face and my recom- mendations to help mitigate the financial impact to your practice. Business PROTECT & DEFEND Insurance companies estimate potential catastrophe-related losses with greater accuracy today because of improvements in modeling software. These forecasts have driven insurers to pay more attention to locations where losses from disasters such as earthquakes, floods, hurricanes and tornadoes can reach critical levels. By Ed Branam, DVM, CIC Stay above water after a flood Read your insurance policy closely and make needed adjustments so that your practice doesn't go down the drain when catastrophe hits.

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