Your veterinary practice’s insurance agent should do more than email your renewal notice once a year. The person should understand your business inside and out, anticipate risks before they become problems, and go to bat for you when the unexpected happens. Unfortunately, in today’s name-your-price world, some practice owners treat insurance like a commodity — a box to check and a policy to purchase as quickly and cheaply as possible. That approach might save you a few dollars or several hours of your time, but it can cost you everything later.
The truth is that your insurance partner belongs on the same level as your accountant, attorney and practice consultant. Your agent is a key player on your professional board of directors, someone whose insight, experience and advocacy can all make the difference between a minor setback and a devastating loss.
Whether you’re evaluating your current insurance relationship or interviewing a new agent, the following nine questions will help you separate the slick salesperson from the true professional.
1. Are You Fully Licensed?
Only licensed insurance agents can legally answer questions about and provide advice on products and services. An unlicensed insurance agency employee cannot offer advice on something as simple as a claim. In many circumstances, unlicensed staff will only be able to take a message and refer you to a licensed team member. Just like in the veterinary industry, licensed insurance staff must take continuing education.
2. Do You Represent Multiple Insurers?
The insurance industry has captive agents and independent agents (sometimes called brokers). Generally, captive agents represent only one insurance company and its products and services. Brokers and independent agents often represent multiple carriers. Working with an agent who understands your coverage needs and what various companies offer can help you get the best protection at a reasonable price.
3. Do You Offer Veterinary-Specific Insurance?
Not all insurance is created equally, so having a policy specifically designed to protect your practice is critical. Many times, an agent or agency will have a named insurance program in their specialization. The best example is AVMA PLIT and its veterinary industry products and services. Having niche insurance products or a suite of coverages can ensure better protection.
The good news is that purchasing an array of coverages often doesn’t mean higher costs. Insurance carriers offering a package for a specific industry usually do so without charging extra. That’s because they understand the industry’s risks.
4. How Often Will I Hear From You?
One of the common complaints I receive from prospective veterinary clients is, “I never hear from my insurance agent.” While communication can take many forms, your agent should contact you, at a minimum, to advise you about the timing of your renewal policy and any additional coverages available to you. For example, many of the startup practices I work with purchase initial coverage to comply with lender and landlord requirements and add other coverages later.
At some point, your agent should reach out with additional options, like employment practice or cyber liability insurance, that may not be part of your current program. Also, the agent should communicate with you throughout the year to ask about changes in your practice, review payroll amounts for your workers’ compensation policy and review equipment purchases.
5. Have You Fully Explained All My Coverages?
While most practice owners don’t know every detail of their insurance policy, they should have a basic understanding of what is and isn’t covered.
A common misconception is that an insurance policy covers everything. For example, I was reviewing a practice owner’s insurance when I asked how much coverage he needed to replace all his equipment. He answered, “$1 million, easy.” I informed him that his current policy capped out at $250,000.
Unfortunately, some agents replicate the coverage from one policy to the next without asking questions, explaining the limitations or looking for gaps.
6. Do You Have Flexible Payment Plans?
Now more than ever, insurance carriers provide billing options for small commercial accounts. In most cases, the practices I work with select a 12-installment plan and use a credit card. (We all need those airline miles, don’t we?)
Some policies, however, offer limited payment options. When an insurance policy is direct-billed, it goes from the insurance company to the practice. In the case of an agency-billed policy, the agency collects the premium from you and pays the carrier on your practice’s behalf. With agency-billed accounts, the annual premium is generally due when the policy is issued. Some paid-in-full accounts may use a finance company, an option you can discuss with your agent.
7. Are You a Generalist?
An agency that insures just one or two veterinary practices might not understand your clinic’s unique needs. These generalists will work with any business needing insurance, not just you and practices like yours. Insurance professionals who specialize in veterinarians and practice insurance have a better understanding of your scope of work and the coverages your practice needs.
8. How Active Are You in the Veterinary Industry?
While insuring a handful of veterinary practices is good, does the company attend state and national veterinary conferences? Does it provide continuing education to veterinarians and practice owners? Is it active with groups like the Veterinary Business Management Association? While such participation isn’t required, your agent should show a higher level of commitment to the veterinary profession and understand the latest trends and hurdles to provide better products and services.
9. Can You Provide Testimonials or a List of Satisfied Practices?
A positive client testimonial goes a long way in proving that an insurance agent or agency understands the veterinary industry. Being unable to provide veterinary-specific testimonials or references doesn’t mean an agent is bad, only that the person might not be as experienced as you want.
Choosing the proper insurance agent for your veterinary practice isn’t just about finding a cheap premium; it’s also about choosing a partner who understands your business, anticipates your risks and stands beside you when the unexpected happens.
Hiring the wrong partner can undo years of hard work in a single claim. Hiring the right one can give you the confidence to focus on what you do best — caring for animals and leading your team — and to know that your practice is protected.
YOUR NEXT STEPS
Take the nine questions to your meeting with your current or prospective insurance agent. Listen closely to the answers. You will know whether the person across the table is prepared, experienced and aligned with your needs. Don’t settle for generic advice. Choose an agent who understands the veterinary industry and can keep promises when they matter most.