Hearing Aid Specialists: Insuring Against Risk

Protect What You've Got

As a dispensing audiologist or hearing aid practitioner, you most likely have a standard commercial policy that covers the risks associated with running a health services business. But, have you considered all of your risk exposure? What about a catastrophic loss? Loss of business and income?

There are numerous commercial policies sold by a variety of insurers – some a better value than others. And the person who knows best what insurance lines are best-suited to your particular business? Your insurance agent.

The Insurance Agent

These trained men and women do more than write up policies and send out calendars during the holidays. Most are trained in risk assessment – identifying where you and your business are exposed.

Ask you agent to visit your store. Provide an inventory of equipment, and do some research on replacement costs for that equipment. That’s your risk exposure.

If you keep hearing aids in the back room, you’re carrying inventory which must be replaced if a fire hits the building. And don’t forget fixtures, like display cases, and back office equipment.

Ask your agent to document your in-store assets with video or pictures so, in the event you file a claim, you have proof that you did, indeed, have inventory in the back room.

Develop an actual dollar amount of physical assets. If you own the building, that has to be added. If you rent, talk to your landlord about coverages s/he has on the property.

Your insurance agent will work up the right policy with the right coverages to protect your physical assets in the event of a total loss. It may be expensive but what’s your business worth?

Loss of Business

Many commercial policies provide for loss of business. If your retail outlet or office is a total loss, it’s going to take time and money to relocate and get up and running again. Loss of business coverage pays your bills and helps with the rebuilding process so you can get back to work faster without losing your home.

Business Liability

Any visitor to your office is a potential risk. An elderly person could trip on a carpet, fall and break a hip. Your business – and you personally – may be facing a lawsuit.

Shovel walks, keep doorways clear and make sure that furniture is secure and safe. You may not be able to protect against all contingencies (accidents happen) but you can cut down on the likelihood of a business liability claim.

Professional Liability

Any health care provider runs the risk of a professional liability claim. A patient who claims that her hearing got worse after your treatment may well sue you for malpractice, claiming millions in damages.

Unfortunately, we live in a litigious society and civil lawsuits against health care providers are common. This is why you have to protect you and your business against any kind of lawsuit.

Again, your insurance agent will be able to help by correlating patient figures against claims and lawsuits on a percentage basis. Don’t necessarily rely on this figure. It only takes one, long, drawn-out case to bust the bank and the business.

One step you can take is to incorporate your business. This creates a legal entity – the business – and separates you from the business, providing some protection of personal assets, though health care providers are still at risk for personal/professional liability. Today, litigants sue the “deep pockets,” which may be you.

Err on the Side of Caution

Once you and your insurance broker have evaluated business and professional exposure to risk and calculate a dollar amount to cover that risk, purchase a commercial umbrella policy.

An umbrella policy kicks in when all other insurers have fulfilled their obligations. It’s insurance for your insurance.

You’ve worked hard to build your business. Take the time to identify exposure to risk. Talk with your agent and together evaluate your risk. Calculate the total dollar amount of all your business and professional exposures and purchase coverage in that amount.

Finally, err on the side of caution. Purchase an umbrella policy that let’s you sleep better at night. And when that rainy day does come, you’ll be glad you took the time to cover your assets.

Need more information and advice on building a successful hearing aid hearing center? Then you need hearingtutor.com. Stop by, drop me a line and let me show you how to grow your hearing aid business to real profitability in no time.

John M. Adams III

hearingtutor.com