Four Situations That Put Your Practice At Risk

Four Situations That Put Your Practice At Risk

You might be surprised to learn that situations like these can expose your practice to financial loss. When risk becomes reality, are you prepared for these common situations that D.C.s face?

Costly Trips and Falls

You share office space with Dr. Brown. A patient trips over a frayed rug in your office entrance and breaks her wrist. The patient sues both doctors in the office. The patient is awarded $30,000 in a claims settlement and it is determined that both doctors are equally responsible for the common space shared in the office.

Dr. Brown carries a business owners' policy and his insurance pays the $15,000 portion of the settlement. Dr. Brown also incurred $25,000 in defense costs which are also covered (up to $30,000) by his insurance company.

If you rent or lease space from Dr. Brown but do not carry insurance, here’s what you should know. You are not covered under Dr. Brown’s business owners’ policy nor are you covered under the building owner’s insurance policy.

So now, because you were named in the lawsuit, you are responsible for your defense costs of $25,000 and also the claim settlement of $15,000. That’s $40,000 of out-of-pocket expenses because you did not have a business owners insurance policy.

Learn how to protect your practice with business owners insurance by calling us at 800-769-2000, ext. 8180 or emailing us at agents@ncmic.com.

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An Employee Accident

Frequently, D.C.s ask an employee to run a work-related errand like going to the post office or the bank.It’s probably a short trip and your employee may use their personal car. But then, the unexpected happens. Someone runs a red light and causes significant damage to your employee’s car and they’re sent to the hospital for care.

Because this was a work-related activity, you are responsible for the employee’s injuries including, medical cost, rehabilitation, and lost wages. The employee suffered multiple broken bones and medical costs (including multiple surgeries) total more than $60,000.

The employee also is out of the office for 2 weeks following the accident.

Your workers’ compensation insurance will cover all medical costs and employee wages during this time. Most states require you to have this insurance coverage if you have employees.

Learn how to protect your practice with workers' compensation insurance by calling us at 800-769-2000, ext. 8180 or emailing us at agents@ncmic.com.

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Computer Held for Ransom

What happens when you’re on your office laptop and a message pops up saying your computer has been locked because you’ve accessed illegal websites. The pop-up screen may look like an official message from a government organization, making it seem very real and very official.

That same messages requires you to make a payment to access your computer and its files. A threat of imprisonment, destruction of files and other warnings are most likely part of this scam.

It means your laptop has been infected with ransomware, a type of malware that encrypts and locks out any user from computer files and programs. And now, the hackers are demanding $15,000 to unlock the computer.

If you have a data compromise insurance policy, you may be covered if your policy will pay the $15,000 ransom so your files can be restored.

Learn how to protect your practice with data compromise insurance by calling us at 800-769-2000, ext. 8180 or emailing us at agents@ncmic.com.

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Employee Sues You

One of your employees sues you for discrimination including back wages for the time that they are unemployed. The employee is suing you for the amount of $70,000. Your case goes to trial and you are found not liable for discrimination. Your defense costs for the case are $25,000.

If you have employment practices liability insurance (EPLI), it will cover the defense and settlement costs for this claim up to your policy limits. 

Learn how to protect your practice with employment practices liability insurance by calling us at 800-769-2000, ext. 8180 or emailing us at agents@ncmic.com.

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NCMIC Insurance Services is a licensed insurance agency. Insurance coverage is underwritten through many of the nation's leading insurance carriers. CA license #0B84564. In NY: NCMIC Insurance Agency. In MI: NCMIC Insurance Services Agency, Inc.