Why Veterinarians Need Business Liability Insurance
You could face an accusation of malpractice, a pet owner could get injured, or your computer system could get hacked at your veterinary clinic. Business liability insurance for veterinarians protects you financially against lawsuits, third-party injuries, and cyber criminals.
Liability insurance protects veterinarians from financial loss and it can be customized to your needs as a vet.
Western Financial Group, a 100% Canadian company, can help you navigate your business, car, home, and boat insurance during this period of economic uncertainty.
What is business liability insurance for veterinarians?
Business liability insurance for veterinarians includes professional liability insurance, also known as malpractice insurance or errors and omissions insurance, commercial general liability (CGL) insurance, and cyber liability insurance. Liability insurance financially protects you against lawsuits and legal claims as a veterinarian.
Did you know? Western Financial Group worked in partnership with the Canadian Veterinary Medical Association (CVMA) to develop the CVMA Insurance Program, which provides various insurance options that are tailored to CVMA members. Our program offers complete in-house services, including claims and risk management services.
Why is business liability insurance so important?
Liability insurance can offer financial protection if your veterinary business is sued for unintentional harm to a third party (animal client, supplier, or member of the public). It typically helps cover legal fees or court-ordered settlements or awards.
A lawsuit can be financially devastating to a veterinarian without business liability insurance coverage.
Here are the liability insurance coverages that vets need
Professional liability insurance
Professional liability insurance, also called malpractice insurance or errors and omissions insurance, protects you against claims from your clients that allege negligence, misconduct, and failure to deliver services as promised for their pets. Malpractice insurance can help protect vets against an error in diagnosis, treatment in surgery, or prescribing medication for an animal.
Veterinarians can be sued for negligence or malpractice if an animal suffers an injury or death during treatment.
Malpractice insurance offers you coverage if you make a mistake in your professional service as a veterinarian. If you don’t have this type of insurance coverage you will be paying out of pocket for a lawyer, court fees and other related expenses.
Commercial general liability (CGL) insurance
CGL insurance is also a type of business liability insurance for veterinarians.
Accidents can happen and commercial general liability insurance protects you from claims such as third-party bodily injury and property damage related to your veterinarian business.
A pet owner could be injured when they slip and fall on a wet floor or an employee could damage a customer’s property.
This type of insurance helps cover the expenses associated with these types of accidents and many others. It pays for medical and legal expenses and for replacing damaged property. Without this type of insurance, you would be responsible for paying those costs out of your own pocket.
CGL insurance covers:
- Medical bills if someone is injured on your business property
- Property damage caused by your business
- Settlements
- Legal expenses
- Damage to property that your veterinary practice is renting
- Libel, defamation, slander, and false advertising
Cyber insurance
If you store online financial data for your veterinary business or you take credit card payments, you must protect this information and can be held liable if you don’t.
If your computer system is hacked, cybercriminals can sell the information. Without cyber insurance, you will have to pay out of your pocket for the cost of restoring your system. You may also be liable for damages to third parties whose information has been stolen and you may have to pay for notification expenses to inform clients affected by a breach.
Advantages of Western’s CVMA program for veterinarians
- Industry-leading coverage and limits tailored to the industry
- Long-term rate stability generated by spreading claims over the entire pool of participating CVMA members.
- Flexibility that allows CVMA members to tailor their policy with various coverage options
- Each member has a dedicated Commercial Insurance Advisor to assist them.
- Our risk management team collaborates with you to assess your business and identify areas for improvement.
- The CVMA Employee Benefits Program is a nationwide benefits program
Did you know? The Registered Veterinary Technologists and Technicians of Canada (RVTTC) has partnered with the Canadian Veterinary Medical Association (CVMA), to provide its members with access to professional liability coverage through the CVMA Insurance Program.
What other types of insurance do veterinarians need?
Legal expense insurance
Legal expense insurance covers expenses that may arise from an unforeseen legal matter, such as employment disputes, allegations of malpractice, or if you need to defend your veterinary license in front of a disciplinary board.
Commercial property insurance
Whether you rent or own your location for your veterinary business, commercial property insurance can provide financial coverage in the case of a fire that destroys or damages your business property and its contents.
Commercial property insurance also protects your place of business or office and its contents from damage or loss related to severe weather, theft, and vandalism.
You should consider adding sewer backup or overland flood coverages, which standard business insurance policies typically don’t include.
Equipment breakdown insurance
Your veterinary practice can have ultrasound equipment, anesthetic machines, oxygen tanks and heart monitors. Equipment breakdown insurance provides coverage for property damage from the sudden and accidental breakdown of insured equipment not automatically covered by a standard commercial property policy.
Business interruption insurance
Business interruption insurance supports you when your veterinary practice can’t operate due to a covered loss. This type of insurance can be the difference between recovering from a loss and closing permanently.
There are many losses that can force your vet business to shut down. Some examples include:
- Damage to your equipment from fire or vandalism
- A major reduction in revenue due to a client/supplier facing losses of their own
- A disruption in your supply chain
Business interruption insurance can help with expenses such as:
- Payroll
- Rent
- Utilities
- Property taxes
- Alarm monitoring
- Relocation of your business
Commercial vehicle insurance
Your personal car or truck insurance usually won’t cover your veterinary business. If you have a business car, truck, or van that you use as part of your practice, it needs commercial coverage as part of your plumbing insurance package.
How much veterinary insurance do I need and how much will it cost?
It will depend on the size of your business and the kind work that you do.
That means it’s unlikely that all veterinary practices would pay the same monthly or annually for their coverage.
For example, small animal veterinarians would not have the same amount of insurance as veterinarians working in herd management or with high-value animals.
5 FAQs about veterinarians and insurance
What’s the most common complaint at a veterinary clinic?
A pet’s treatment has been unsuccessful and the outcome wasn’t as intended or the treatment was inappropriate.
Do veterinarians get sued?
Yes. Veterinarians can be sued for malpractice. Veterinarians are held to a standard of care and if they fail to meet that standard and cause harm to an animal, they can be sued by the animal's owner.
Do vets need liability insurance?
Veterinarians need insurance, especially professional liability insurance, also called malpractice insurance, to protect themselves and their practices from potential financial losses due to malpractice claims or legal disputes.
Does pet insurance cover a visit to the vet?
Medical bills from licensed vets can be submitted to your pet insurance provider.
How do I find out if a vet has been sued in Canada?
In Canada, information about disciplinary actions against veterinarians is available through provincial licensing bodies.
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