Medical Practice Risk Insurance
Most practices are reliant on one or more partners for the success of their practice. Medical Practice Risk insurance addresses a range of different issues that may arise if one of a partner's health fails.
Key Person Cover
Most practices will have key people that contribute a significant amount to the success and functioning of the practice and can be very costly and/or hard to replace. By putting the right amount of key person cover in place the practice will be able survive the loss of a Key Person through death, illness or disablement. The money can be used to provide a locum and additional funds can be allocated to find another partner in the meantime.
Business Debt Protection
Many medical practices will experience growth. Investing in new technology and medical equipment are essential to this growth. For many medical practices loans are the vehicle used to facilitate this growth. Most loans involve having personal guarantees which can be called upon at any given time, which can expose not only the partners themselves but also their families home and lifestyle. Putting lump sum covers in place in order to reduce or eliminate debt exposure will protect the practice owners' lifestyle and ensures the continuity of the business should something happen to one of the guarantors.
Shareholder Protection & Buy And Sell Agreements
A buy-sell agreement is a written agreement between the shareholders of a practice and sets out what should be done with their business interests should they resign or retire early due to suffering a critical illness, become disabled or die. It's important to have the right combination of lump sum covers and a buy-sell agreement in place. The insurance payout can fund the transfer of shares as set out in the buy-sell agreement. The exiting shareholder (or their estate) will receive the value for their shares whilst the shares are re-distributed amongst the remaining shareholders without them having to self fund or look for financing options.
ACC Cover Plus Extra
Depending on the practice some self employed partners will be paid in the form of a shareholder salary. For the self employed, ACC Cover Plus Extra is an optional policy that lets self-employed people and non PAYE shareholder employees negotiate a pre-agreed level of lost earnings compensation. This way you know exactly how much you’ll receive each week if you are injured and can’t work – whether the injury is work-related or not. If you choose ACC Cover Plus Extra, this will replace your standard ACC Cover Plus product.
In some cases our clients choose to reduce their ACC Cover Plus entitlement and therefore levies and instead cover themselves with a private income protection policy. In other cases they choose to increase their ACC Cover Plus entitlement to cover additional losses that would not have been taken into account by basing the entitlement on their taxable income alone.
In some cases our clients choose to reduce their ACC Cover Plus entitlement and therefore levies and instead cover themselves with a private income protection policy. In other cases they choose to increase their ACC Cover Plus entitlement to cover additional losses that would not have been taken into account by basing the entitlement on their taxable income alone.
