Physician Disability Insurance Solutions Part 2
Aside from the personal economics of physicians and surgeons, business planning is also of great concern from a disability perspective. Last week we investigated addressing the personal income protection needs of medical professionals. This week we will delve further into the physician and surgeon market with an emphasis on business solutions.
Like most other American businesses, doctors in private practice, clinics and surgery centers have corporate insurance needs to address risk and liabilities that would be exacerbated by the physical demise and disablement of the company owner or another physician key to the business.
Physician practices set-up in partnership should have formal buy/sell agreements to ensure business succession. Insurance to fund such an agreement in case of the permanent disablement of one of the owners is important. Buy/sell disability programs can be designed to mirror the specific benefit demands of buy/sell contracts.
Just the cost of running a doctor’s office or clinic can be a sobering and expensive matter. Monthly overhead expenses like equipment rentals, building mortgage payments, numerous insurance premiums, utilities and employee payrolls must be indemnified against disability. Business overhead expense (BOE) disability insurance is one of the best tools in safeguarding the continuation of the business and keeping the office open.
Another amazing product that helps ensure business continuity in the physician and surgeon market is key person disability insurance. Doctors are certainly important to their practices, and the insurance assists in financially supporting a business in the short term after losing key personnel. Benefits typically force a corporate rejuvenation and can be used for recruitment and replacement costs as well as a needed injection of capital to temporarily combat lost business revenue.
The financial indemnification of corporate debt is also something that should be seriously considered in a doctor’s business plan since many utilize loaned capital for practice purchases, book of business buy-outs and equipment purchases. Medical professionals are one of the largest demographics of subscribers to business loan disability insurance policies. Business loan DI covers a lender’s risk exposure on the physical ability of a borrowing physician.
These high-limit, long-term business insurance products and more are available through Petersen International for physicians and surgeons.
Whether your doctor clients need excess coverage above the limitations of the standard DI market, or they have been declined or postponed by domestic carriers due to medical history, build, age, alcohol or drug abuse or some other reason, Petersen International has all the unique, specialty market disability insurance solutions you need to financially safeguard your clients, their families and their businesses.
Call our medical profession disability insurance specialists at (800) 345-8816 to hear more about what we can do for physician and surgeon prospects.