10.8 Insurance

There are several types of insurance to consider beyond the mandatory practice insurance. For example, consider that something might happen to you personally (as opposed to your premises or property). You may wish to consider investing in life insurance to help pay for the winding-up or sale of your practice. You might also wish to consider disability insurance in the event you are unable to work or need to pay someone to carry on your practice during a period of disability. What would happen if you were to injure yourself on vacation and have to take time off work?

Also consider whether you need property insurance for business premises, business interruption, general commercial liability insurance for injury to people or property, cyber-crime or data breach coverage and insurance for the contents of your premises (including such matters as riders for things like laptops, etc.).

Where to Start?

You should start by taking stock of your entire inventory. In turning your mind to the issue of insurance, you will have to consider the coverage options that are best for you. This is an ongoing process. You should review your insurance coverage at regular intervals when you review plans for continuity and disaster.

You should consult with a knowledgeable commercial insurance broker to find out more about the types of insurance available. An insurance broker acts on behalf of the insured to obtain and negotiate the best coverage for the insured. For example, you can obtain cyber insurance to address data breaches, not only to obtain compensation if a breach occurs, but also to access proactive resources to help you reduce risk.

In addition to obtaining insurance, something as simple as arranging a line of credit can assist you if disaster strikes and disrupts your normal billing cycle. It may take longer than anticipated to get your practice back up to speed, if, for instance the building where your office is located is severely damaged by flooding and the insurer is not able to process your claim immediately. You may need cash faster than anticipated. Having room on your line of credit will help.

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Last modified: Friday, 27 January 2017, 3:54 PM