Walk the expo hall at any large veterinary conference and you’ll see vendors selling their products and services to mobile practitioners. You’ll see everything from portable diagnostic equipment to complete clinics built on truck frames. The days of only large animal or ambulatory veterinarians offering mobile services are over. The field has expanded to include solo doctors providing in-home euthanasia, on-site surgery, and CT scans.
While the business models may differ, many insurance risks are similar. Make sure you have the coverage you need to keep moving.
Start the Engine
Any mobile veterinary practice has some form of exposure. Whether you are driving a personal vehicle, a commercially owned car or SUV, or a custom-built four-wheeler, keep a few considerations in mind.
First, many mobile practitioners start with a passenger vehicle titled in their name. How your insurer classifies it will determine the coverages and rate. The three standard classifications are:
- Personal use: This commonly applies to an extra household vehicle that is not driven daily to work or school. Think of a third car in a two-driver household, used only on weekends or for errands. The premium charged is lower because of the reduced chance of an accident or insurance claim involving a mostly idle vehicle.
- Commute use: These vehicles are typically driven daily to a fixed location and generally by a specific driver. Insurers commonly ask for the one-way commute mileage and annual mileage. Therefore, the more miles driven, the higher the premium.
- Business use: This classification often involves individuals who do not commute to a single office every day but use a personal vehicle for business purposes.
Note: In the event of a minor claim, your insurance carrier might not ask where you were going or what you were doing. On the other hand, your answers to those questions will be scrutinized after a serious accident. If you use your personal car in a mobile practice, having the correct vehicle classification is critical to avoid coverage issues or a policy cancellation.
Commercial Auto Insurance
If you title a vehicle in your practice’s name and desire adequate protection, you need a commercial auto insurance policy. Once the vehicle is in the practice’s name, you cannot insure it under a personal policy.
The main differences between personal and commercial auto policies are higher liability limits, the ability to insure higher-value vehicles (including permanently attached equipment), and a rating based on factors such as mileage radius.
Another key difference is driver reporting. Under a personal automobile insurance policy, permissive use generally allows others to drive your vehicle. On a commercial policy, you must list the drivers who will operate the vehicle, often at each renewal period. Insurance carriers want to know who is driving a commercial vehicle so that they can underwrite and price the policy correctly.
Practices on Wheels
Purchasing a mobile veterinary practice built on a large truck chassis can cost $200,000 to $400,000 — or even more.
If you work with a vendor that builds a mobile practice from the frame up and customizes it to suit your needs, the permanently attached equipment is considered part of the vehicle for insurance purposes. Suppose you buy a Ford F-350 chassis for $125,000. Once it’s built out, the total insured value should include the chassis and all permanently attached equipment. My agency insures a mobile CT service that travels to local practices for on-site scans. A commercial auto policy worth more than $600,000 covers the vehicle, the CT, and other permanently attached equipment.
Hired and Nonowned Auto Insurance
This coverage is a must for any veterinary practice, and especially for mobile veterinarians. Hired auto coverage is for rented or leased vehicles used by the practice. Nonowned coverage protects the practice if an accident involves a nonowned vehicle. For example, a veterinary technician drives a personal vehicle to meet you at a client’s home but gets in an accident along the way. Nonowned auto coverage provides liability protection for the practice.
At Home or on the Move
Much like a brick-and-mortar clinic, mobile practices need liability and equipment coverage, but with a few differences. One is that mobile practices do not have a single location housing all the equipment. Instead, much of it travels within the service radius.
Mobile practitioners commonly use the DVM owner’s home address as the practice location. While some equipment may be kept there, these items represent a small portion of the overall value, so most of the exposure lies with equipment that is frequently elsewhere.
This exposure is commonly referred to as “property off premises.” Practice equipment covered at the primary location is usually fully insured only while there, and many policies provide limited coverage once the equipment leaves the premises.
I worked with a practice that used a trailer outfitted as a mobile exam room. The trailer was valued at over $100,000 and held $190,000 in miscellaneous equipment and $125,000 in individual items valued at over $5,000 each. A high-end pickup towed the trailer. The equipment properly off premises was covered under an inland marine policy. Every item valued at over $5,000 was scheduled individually, listing the manufacturer, make, model, serial number, and price, while less expensive items were insured as miscellaneous practice equipment.
For many mobile practices, inland marine and auto insurance make up the bulk of the coverage needed to insure the business properly.
Mobile practices are here to stay. However, not all insurance companies are willing to cover them. Be sure to work with an agent and carrier who are comfortable with your service offerings and who understand the unique risks of mobile care so that you can protect your business and keep on rolling.
ODDS AND ENDS
Workers’ compensation and veterinary professional liability insurance are other essential coverages for mobile practices. In addition, a comprehensive program might include employment practices liability coverage and cyber insurance.