Monthly Archives: October 2023

If you run a healthcare business, you might know it comes with a range of challenges and risks. 

From physical therapy clinics to chiropractic offices, these practices face a number of potential liabilities.

And these can have significant financial and reputational consequences. 

In this guide, we explore some of the common insurance covers healthcare businesses should consider. 

But first, let’s look at a case study that shows how insurance can work in healthcare. 

Dr S Tarek Shalabi is Cosmetic Doctor Brisbane’s owner and co-founder. The business specialises in non-surgical cosmetic medicine. As a medical practice, the firm is required to carry public liability and professional indemnity insurance. As an injectables cosmetic clinic, contents insurance is also a must, given the high-value nature of the product. 

The practice has never made a claim on its policies. Dr Shalabi credits this to the resources his medical indemnity insurer has in place to help prevent a situation from arising where he would need to make a claim.

“They are extremely helpful in situations where we would like to discuss a complex situation, for example, in cases where we have specific requests from patients which deviate from our normal practice,” says Dr Shalabi.

“They have a full team of doctors and medicolegal professionals available 24/7, in addition to a multitude of online guides, resources and case studies,” he says. 

“They provide a great platform to discuss cases where there may be no immediate ‘right answers’ and provide us reassurance and backing when making decisions. On multiple occasions, they have guided us through the correct course of action to provide the best outcomes for our patients and to reduce the risk of a claim,” he adds.

“Healthcare businesses are exposed to a range of different risks that range from everything from malpractice claims to property damage and even theft”

What are the main insurances healthcare businesses may need? 

Given the nature of their work, healthcare businesses are exposed to a range of different risks. These include everything from malpractice claims to property damage and even theft. 

So, it’s important for businesses operating in the healthcare sector to have a well-thought-out risk management strategy, including appropriate insurance policies. Let’s take a look at some of the main policies healthcare businesses may need.

Professional indemnity insurance

Healthcare businesses are at risk of being sued by patients if they believe a healthcare professional has provided substandard care or has been negligent in their treatment, resulting in harm or injury.

This cover helps to protect healthcare professionals from claims related to errors, omissions or negligence in providing their services. It can cover legal defence costs, settlements and judgments.

Public liability insurance

This type of insurance  provides protection for property damage and personal injury claims arising from accidents that occur on the business premises or as a result of business operations. 

“This type of cover is essential for protecting against risks such as slip-and-fall accidents and equipment malfunctions,” says Steadfast’s Broker Technical Manager, Michael White.Recommended readingsHow Australian businesses can get staff back to the office

Business pack insurance

This protects the physical assets of a business, including the building, equipment, furniture and supplies, against perils such as fire, theft or vandalism. It can also provide cover for business interruption if the premises become temporarily unusable. In the case of cosmetic injectables, if they need to be kept in cold storage, the business would need to take out cover for deterioration of stock in cold storage. 

Workers’ compensation insurance

If the health business has employees, workers’ compensation insurance is required by law. It provides medical benefits and wage replacement to employees who suffer work-related injuries or illnesses. 

Cyber insurance

In today’s digital world, like most other businesses healthcare businesses are increasingly vulnerable to data breaches and cyberattacks. Cyber liability insurance helps cover the costs associated with data breaches, including legal expenses, notification and credit monitoring services and potential liability for compromised patient information.

Do you have the right cover? 

A risk management strategy, including the right insurance, is essential for every healthcare business. 

Talk to your broker today to find out more.

Property can be an excellent long-term investment, but it doesn’t come without risks.

There can be a chance your tenants may default on the rent, steal items from the property or cause damage that their bond may not cover.

The rental income you rely on to pay the mortgage could disappear if a natural disaster renders the premises uninhabitable for an extended period of time.

That’s where landlord insurance comes in.

A specialised form of cover designed to protect property owners who rent out commercial or residential spaces by mitigating some of the most common risks associated with being a landlord.

While having a landlord insurance policy is not mandatory, it’s highly recommended by real estate professionals and financial specialists who’ve seen landlords suffer significant losses and hardship from tenant-related events.

What’s typically covered in a landlord insurance policy? 

A landlord policy typically comprises a combination of building, contents and landlord insurance.

Property damages from natural disasters (such as fire, flooding and storms) are likely to be covered, as are possessions kept on the rental premises for maintenance purposes, such as tools and gardening equipment.

The landlord component of the policy typically covers loss of rental income if the property becomes uninhabitable. This could happen as the result of a covered event, rent default, damage or theft by tenants and their guests, liability in the event of an accident, and legal expenses, if necessary.

What landlord insurance doesn’t cover are the regular costs associated with being a landlord.

This could include construction defects, normal wear and tear, and ordinary expenses, such as plumber’s bills for clearing drains.

“The landlord component of the policy typically covers loss of rental income if the property becomes uninhabitable”

Paying for peace of mind 

Landlord insurance has proven a worthwhile investment for Rodney Holder, whose property portfolio includes a block of units in the central Queensland town of Rockhampton as well as houses in Canberra and Brisbane.

His policy covered the cost of making good the damage caused by one less-than-careful tenant in his Canberra property, including torn curtains, a hot pot burn mark on a newly laid floor and a broken door on a new oven.

“As with any insurance, you’re paying for peace of mind,” Holder says. “It’s also tax deductible and a cost of doing business.”

Other claims can be significantly larger, warns Jo Napoli, the Principal of real estate agency The Rental Specialists.

She recently helped a client evict squatters from their investment property and says the bill for lost rent, new locks, damage to the premises and cleaning came to just under $10,000.

After being provided with a copy of the condition report, tenancy ledger, photographic evidence of the damage and invoices for repairs, the client’s insurer paid the claim within 14 days, Napoli says.Recommended readingsLaunching a new business in 2023

Cover when it counts 

If you’re a landlord or considering becoming one, it’s a good time to consider the benefits of landlord insurance. It could also be worth reviewing your level of cover to check it remains right for your circumstances.

Contact your broker today to discuss your unique insurance needs today.