MedEsthetics magazines offers business education and in-depth coverage of the latest noninvasive cosmetic procedures for physicians and practice managers working in the medical aesthetics industry.
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36 JULY/AUGUST 2015 | Med Esthetics ARE YOU COVERED? of a fi re. Instead, it offers protection for a third party. For example, if a coffee shop leaves a machine on all night and it starts a fi re, this coverage will protect the coffee shop if they are sued for damages by other businesses or individuals that were affected by the fi re. HIPAA compliance coverage protects practices that violate—whether intentionally or unintentionally—HIPAA regulations regarding the collection and sharing of per- sonal health information. Susan Preston of Professional Program Insurance Brokerage notes that these violations can result in large penalties. HIPAA violations may be covered under your professional liability policy, but it's worthwhile to ask. If these claims are not covered, there are several new HIPAA-related insurance products avail- able to protect your facility against civil damages. Business interruption insurance, also known as business income insurance, covers the loss of income that a business suffers due to a disaster. This differs from property insurance, which covers physical damage to the business. Some things typically covered under business interruption insurance include profi ts, fi xed costs or operating expenses, and temporary relocation. Some policies also cover the cost of moving the business to and from the temporary location. This type of insurance is not a stand-alone policy—it is added onto the business property policy. In addition, you can purchase contingent business interruption coverage. This will pay out when a business can't operate because of an event that damages the business premises of one of its suppliers, preventing you from engaging in normal trade. Product liability coverage is for practices and medspas that offer retail products and devices. It protects a practice against claims from a patient who, for example, purchases a skincare product and has an allergic reaction or uses a laser device and damages their eyesight. Sometimes the client is at fault for not reading the directions or applying the product incorrectly, but on occasion it could be the product itself. Even if the branded product is to blame, the doctor and practice can be brought into the lawsuit, says Preston, so it is wise to protect yourself. Personal and advertising injury policies protect your business in the event that someone in your facility says or writes negative comments about another person or another facility. In some cases, these policies also apply to copyright infringement. The important factor with this type of policy is that the action—or injury—must be unintentional. This coverage may be included as part of your commercial general liability policy. Cyber security coverage, a fairly new form of insur- ance coverage for businesses, protects your practice or medspa in the case of a computer hack or breach. While your business may not be as big as Target, smaller businesses typically are more vulnerable to hackers due to unprotected systems and staff that are undertrained on cyber security. In addition, hackers are targeting more than just credit cards—today, they're also looking for private medical information. Working With Your Providers Unfortunately, as a provider of medical services, the odds are good that you or your business will face some type of claim. Callison cautions: Do not try to solve the prob- lem yourself. If you are being threatened with a lawsuit, inform your insurance carrier immediately. If you try to pay off the patient to make the issue go away, it could backfi re. Always check with your insurance carrier before you respond to any legal action. Most policies require you to provide a list of your services. If you don't update your insurance when you add new services, they won't be covered, says Callison. Therefore, don't perform any new procedures until they've been added to your insurance policy. It is recom- mended that you review your coverage at least once a year and every time you add a new service or procedure. Candelario as well as Jason Kunz of AAG Insurance also recommend informing your agent and/or carrier when- ever you have a staffi ng change, and anytime you make a major equipment purchase or expand your facility. When reviewing your policies, be certain to read the exclusions and declarations page—also known as the fi ne print—so there won't be any surprises in the future. When shopping for coverage, know the ranking of the carrier. Don't assume that the cheapest rates offer the best deals. Insurance company rankings can be reviewed through J.D. Power and A.M. Best. The goal of a practice owner or manager is to offer top- notch treatments in a safe and well-run facility. Yet even the best managed practices can—and likely will—face some type of legal action, injury or property damage in their years of operation. Having adequate coverage and a cooperative insurance provider will help you weather the storm. Tina O'Reilly is a freelance writer based in Warwick, RI. Review your coverage at least once a year and every time you add a new service or procedure.