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<strong>Medical</strong> office property <strong>in</strong>surance: Know your limits<br />

By Doré Collett<br />

If your power goes out and your vacc<strong>in</strong>es<br />

are compromised, if your office<br />

gets broken <strong>in</strong>to, or if your laptop goes<br />

on the fritz... are you fully covered?<br />

Almost all of the office <strong>in</strong>surance policies<br />

sold by <strong>in</strong>surers are ‘all risk’ or<br />

‘comprehensive’ package policies.<br />

These are the broadest types of policies<br />

available <strong>in</strong> the marketplace. They<br />

cover various types of losses due to<br />

fire, theft, water and w<strong>in</strong>d damage, and<br />

mysterious disappearance. They also<br />

provide coverage for general liability,<br />

loss of bus<strong>in</strong>ess <strong>in</strong>come, and crime.<br />

While these plans may appear to be the<br />

same, all of these packages have special<br />

limits. Insurers place these limits<br />

<strong>in</strong> policies to avoid exposure to certa<strong>in</strong><br />

types of situations that tend to suffer<br />

more frequent losses.<br />

The SMA <strong>Medical</strong> Office Property Program<br />

has been designed to better suit<br />

medical offices and our members’ needs.<br />

The program takes advantage of group<br />

buy<strong>in</strong>g power to provide superior coverage<br />

and more competitive premiums<br />

for medical office property and liability<br />

<strong>in</strong>surance – with fewer limits.<br />

Compared with the <strong>in</strong>dustry standard,<br />

the SMA program highlights <strong>in</strong>clude:<br />

$5 million commercial general liability<br />

protection<br />

This is covered <strong>in</strong> the package premium.<br />

The <strong>in</strong>dustry standard is about $1 million<br />

of protection.<br />

$25,000 off-premises consequential<br />

loss coverage<br />

As an example, if you have flu vacc<strong>in</strong>es<br />

stored <strong>in</strong> a fridge, this coverage would<br />

provide protection <strong>in</strong> the event that<br />

there is a power cut at a public utility<br />

plant that results <strong>in</strong> a change <strong>in</strong> temperature,<br />

thus spoil<strong>in</strong>g your vacc<strong>in</strong>es.<br />

It is not standard practice to cover any<br />

amount <strong>in</strong> this case.<br />

$5 million for tenant legal liability<br />

Landlords require their tenants to carry<br />

this <strong>in</strong>surance as protection if the<br />

tenant is found legally liable for property<br />

damage to the build<strong>in</strong>g. This high<br />

liability limit is <strong>in</strong>cluded <strong>in</strong> the package<br />

premium. The <strong>in</strong>dustry standard is<br />

about $1 million of protection.<br />

$50,000 coverage for valuable papers<br />

This <strong>in</strong>surance covers the cost of recom-<br />

WEALTH<br />

pil<strong>in</strong>g or retyp<strong>in</strong>g your medical files if<br />

they are stolen or damaged. The <strong>in</strong>dustry<br />

standard is $10,000 coverage.<br />

$5 million for non-owned auto liability<br />

If an employee needs to use his or her<br />

own vehicle for bus<strong>in</strong>ess-related tasks,<br />

he or she would be covered. This coverage<br />

provides a high liability limit to<br />

protect your bus<strong>in</strong>ess should your employee<br />

be found liable for caus<strong>in</strong>g bodily<br />

<strong>in</strong>jury or property damage to a third<br />

party. Standard practice is that this<br />

would not automatically be covered.<br />

“When compar<strong>in</strong>g packages, an office<br />

<strong>in</strong>surance policy conta<strong>in</strong><strong>in</strong>g generous<br />

special limits provides the best value<br />

for your <strong>in</strong>surance dollars and can have<br />

a significant impact on the size of the<br />

payout follow<strong>in</strong>g a loss,” expla<strong>in</strong>s Ed<br />

Hobday, SMA adm<strong>in</strong>istrative director.<br />

“We were so impressed with the reasonable<br />

premiums offered <strong>in</strong> this package<br />

that we decided the SMA office<br />

should have the same coverage.”<br />

With premiums start<strong>in</strong>g as low as<br />

$500 per year, this program comb<strong>in</strong>es<br />

all of the most necessary coverage<br />

<strong>in</strong>to one package for your medical office.<br />

Discounts are available for offices<br />

equipped with burglar alarm systems<br />

or spr<strong>in</strong>kler systems. Commercial<br />

build<strong>in</strong>g coverage is also available.<br />

The SMA <strong>Medical</strong> Office Property Insurance<br />

Program is available through Mardon<br />

Group Insurance. For more <strong>in</strong>formation,<br />

visit the Mardon Group Insurance website<br />

at www.mg<strong>in</strong>s.ca (user ID: SMA, Password:<br />

Insurance) or call 1-866-846-4467.<br />

To learn more about the various tailored <strong>in</strong>surance<br />

products available to SMA members,<br />

contact C<strong>in</strong>dy Anderson, Senior Insurance<br />

Adm<strong>in</strong>istrator at (306) 244-2196.<br />

SMA News Digest Spr<strong>in</strong>g 2011 15

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