Insurance update — is your growing DME business covered?

Many durable medical equipment (DME) companies are diversifying their business models, establishing new ways to generate revenue while seeking to improve their market position.

If you are leading a small- or mid-size DME company that's in a growth mode, it's wise to take a good look at your present insurance coverage. Never take for granted that your current policy will provide adequate protection against newly emerging business risks.

A smart place to start is with an independent insurance agent who understands the unique risks of DME businesses and who has the expertise and knowledge to recommend the right combination of general and/or professional liability coverage for your unique needs.

Most companies carry general liability coverage, which usually protects against claims due to equipment failure by ensuring every piece of equipment you sell or lease is covered along the supply route — in the warehouse, in transit, and onsite when it is in use.

But many DME companies often overlook professional liability coverage, because they don't think of their businesses as providing professional services. For insurance purposes though, even explaining the proper use of equipment to a customer is considered a professional service — and, therefore, represents a potential exposure.

Your agent can help you identify additional coverages you may need to protect your company. For example, "blanket additional insured" coverage will usually fulfill your contractual obligations with other contractors or facilities, entities that have leased or financed equipment, landlord requirements, etc. A "supplemental payments" endorsement normally provides coverage against legal and other expenses incurred for any alleged violations of state, federal, or HIPPA regulations or statutes. And, a "data breach" endorsement offers protection against claims that arise from the theft of personal or patient data, which has become a growing concern.

Of course, it's always best to reduce risk factors and prevent losses before they occur. With that in mind, be sure your agent recommends a carrier that offers risk management services.

The Hanover Insurance Group provides a comprehensive risk management program in which our professionals work with agents to assess their clients' business operations and recommend ways to reduce exposures. Then, we customize our policies to the clients' needs and risks, drawing on a full range of coverage solutions like Hanover Home Medical Equipment Advantage. If and when it is needed, The Hanover's claims operations is staffed by experienced field adjustors, appraisers, nurses, and special investigators.

May 2018