The day began like any other at Dr. Paul Smith's bustling suburban practice. However, what Dr. Smith didn't know was that day would be unlike any other he had encountered.
Posted in Business Insurance on Wednesday, August 7, 2024
As Dr. Paul Smith prepared for the day by reviewing his patient appointments, making sure his treatment rooms were in order etc., he saw a car pull into his parking lot, and rather than slowing down to park, the car began accelerating, directly into the door of Dr. Smith’s practice, shattering the door and sending office furniture flying.
Fortunately, no injuries occurred, as the practice was not yet open, and the driver was able to avoid being hurt as well. Dr. Smith rushed to assist the shocked driver who indicated he had mistakenly continued to step on the accelerator instead of the brake.
Can Your Practice Afford to Close the Doors?
After the authorities arrived and took everyone’s statements and removed the car from Dr. Smith’s doorway, Dr. Smith was left to assess the damage to his practice. The door was destroyed and obviously needed to be replaced. In addition, the new patient check-in kiosk and two tablets were damaged and the furniture in the waiting room had also sustained damage.
The office door Dr. Smith needed to replace was a specialty door and unfortunately was out of stock and would need to be backordered. Dr. Smith was informed that it could take up to 30 days for the door to arrive, which would mean Dr. Smith having to close his practice for at least 30 days.
What’s the First Step?
Dr. Smith contacted his commercial insurance agent, in this case NCMIC, and they were able to help him work with his commercial insurance carrier to start the process of filing his claim.
In the end, Dr. Smith was forced to close his practice for 56 days. Due to this long closure, Dr. Smith’s practice had a significant loss of income. Fortunately, Dr. Smith had a Business Owner's Policy (BOP) in place for his practice which included important coverage like Loss of Income/Business Interruption, coverage for his building, and coverage for his business personal property.
How Coverage Helps
Dr. Smith received the following amounts from his Business Owner's Policy:
- $85,000 for loss of income due to the practice having to close for 56 days
- $15,000 for installing a new door and removing what was left of the old door
- $5,000 to replace the damaged office furniture and tablets
What Can We Learn
- Having a business owner's policy rather than a standalone General Liability policy is essential so that you are covered for Loss of Income/Business Interruption coverage. In this case Dr. Smith was reimbursed almost $85,000 in loss of income due to having to close his practice for an extended period while repairs were completed.
- A General Liability policy also does not provide any coverage for damage to your building or your business personal property. In this case over $15,000 was covered for repairs to the building and to replace damaged personal property such as iPads and office furniture.
Although this case study is based on a real case, names, dates and details have been changed to protect patient and doctor privacy.