BOP

By Jensen Peck, Business and Professional Insurance Executive

A business owner’s insurance policy (BOP) is a cornerstone of risk management for health care clinics. Unlike professional liability (malpractice insurance), which addresses claims against medical services rendered, a BOP addresses business risks such as general liability, commercial property, and business interruption. A BOP covers all these risks by bundling these coverages into one compact insurance policy.

There are some common claims that can arise from everyday business operations. Let’s first define the elements that make a BOP.

• General Liability (GL) – covers third party bodily injury (slips and falls), property damage to other people’s property
• Commercial Property Coverage – covers damage to clinics physical assets (building, equipment, inventory, etc.)
• Business Interruption Insurance – covers lost income and operating expenses when the clinic is forced to close temporarily due to a covered event

One of the most common claims that we see are slip and fall accidents. A patient could slip and fall on a wet floor or even icy sidewalks somewhere on the business premises. If you don’t have coverage for this type of incident, the clinic could be responsible for medical and legal fees, pain and suffering, and possibly more!

Unfortunately, another common claim that happens to clinics is some sort of theft or vandalism. Missing or damaged equipment/computers, filing systems, or other important equipment and systems. Damage or theft of those items could lead to disruption/suspension of services and clinical operations.

Lastly, our clients often experience business interruption claims. These types of claims can present in many different forms including fires, theft, vandalism, and floods. Many medical clinics own or rent space in multi-floor buildings. Water damage from floors above is a common and expensive claim which can be tricky to navigate.

Any of the above-mentioned incidents are a possibility for clinics everywhere. So, it is important to know what you are covered for and if you rent your space, what your current lease requires your insurance to cover. Some coverages can be excluded from your current business owner’s policy, or there might be coverages on your policy you were not aware of. It is important you have these discussions with your insurance agent, or contact a WisMed Assure insurance agent to discuss which options are right for you.