Step 6: Insurance for your business
These days you can get insurance for just about anything.
Strange but true…wine maker, Ilja Gort, insured his nose against both loss of his nose and his sense of smell for over $6,000,000… Fred Astaire insured his legs for $650,000… Abbott and Costello were insured against disagreement… Tom Jones insured his chest hair for $7,000,000 (ok, disgusting rather than strange)…
As a physiotherapist the insurance cover you need to consider is more mainstream:
Professional Indemnity Insurance
As a professional providing physiotherapy services you are legally obligated to service your clients with a certain degree of skill and care, and with that comes a particular risk. If your client suffers a loss that can be attributed to a failure on your behalf to uphold professional standards, you are at risk for a breach of professional duty. Professional indemnity insurance covers the costs and expenses of defending a legal claim, as well as any damages payable, should this situation arise.
Fire & Perils Insurance
Similar to house and content insurance, fire and peril insurance covers your premises, contents and equipment from damage caused by unforeseeable events.
If you are leasing a business premises, it is advised that you enquire with your landlord as to whether the building is covered. It is in your best interest to ensure a policy exists so that in the aftermath of disaster you can return to a productive and profitable level of business straight away.
Public Liability Insurance
As a business owner, you have a ‘duty of care’ to those visiting or engaging in activity on your premises. Public liability insurance provides cover should you be found negligent in the event that a third party sustains personal injury or property damage while on your property.
Even if it seems unlikely that somebody would make a claim against you, this insurance is still considered essential because you do not want to go to the expense of setting up your own business only to find yourself unable to affords costs associated with defending yourself against a claim.
Is a compulsory insurance which covers you against claims from employees from death, injury or illness arising from their employment within your physiotherapy practice.
Business Interruption Insurance
Is insurance to protect your revenue in the event your business activity is interrupted as a result of damage to property caused by fire or other insured perils. In such an event, this policy will ensure that anticipated net profit is maintained, continuing overheads are paid, and key employee wages are paid.
Can pay a proportion of your salary for a while if you’re temporarily unable to work. Generally income protection provides cover for about 75% of your salary in the event of illness or injury preventing you from working.
Total and Permanent Disability (TPD)
Pays a lump sum if you suffer an illness or injury that prevents you from working again
Pays a lump sum if you suffer from one of the specified major diseases or injuries covered such as a heart attack, stroke, cancer or blindness. It is designed to provide a benefit to help you cover medical and rehabilitation costs, and to help with resulting lifestyle and employment changes.
Insurance that pays a lump sum in the event of death or terminal illness.