I operate a medical office … What kind of property insurance do I need?

Insurance Insights

May 11, 2022

Contributed by: Phil Cunningham | Vice President, Business Development Western Canada, Westland MyGroup

Owning and operating a medical practice is a serious business and one which requires a significant financial investment.  Here are some are some key points to consider when purchasing property insurance to protect your investment.

Office contents and medical equipment

Contents of a typical medical office include desktop computers, laptops, filing cabinets, office and waiting room furniture, and various types of medical equipment ranging in cost from small stethoscopes to large laser hair removal machines and x-ray machines. It is important to make sure that these items are all insured on a replacement costs basis so that the items will be replaced with brand new items if they are lost, damaged or stolen. The total replacement cost of all office contents and equipment should be taken into account when choosing a limit of insurance. Failure to do this can lead to you having to contribute towards a claim out of your own pocket if it is found that you had underinsured the total value of your contents.

Leasehold improvements

When renting office space, most leases typically make the tenant responsible for all improvements and renovations made to the space, even if the tenant did not have to pay for them at the start of the lease. As a result, most tenants are responsible for repairing or replacing any improvements which have been done to their space following a fire or a water damage loss. This can amount to many thousands of dollars, and it is critical to make sure any improvements are included in the limits chosen under your insurance policy.

The AMA advances patient-centered, quality care by advocating for and supporting physician leadership and wellness.