Do you know your medical device policy?
January, 2019
Understanding medical device insurance policies.
The first thing you will need to know is the difference between a medical device and a piece of medical equipment. Medical equipment is usually owned by an individual. Medical equipment can also be leased by an individual from a hospital etc. in order to treat a specific problem. Medical equipment, can also be owned by an institution for use on multiple patients to diagnose or treat them. This difference will determine the type of cover that you may require whether it be a medical device policy or medical equipment cover. A Medical device policy is to ensure the manufacturers, designers, and distributors of medical devices for use in institutions and sale to the public.
The next thing that is important to understand is what you can cover under a medical device policy. A medical device policy can cover all risks of physical loss and damage to a device. This simply means that should a device become lost or broken then the insurance will cover the cost to replace the device or repair. You can also cover stock and loss of revenue.
The final aspect that is important to understand is how a premium is calculated. As with all insurance policies the premium is based on a level of risk and exposure that a business has. Similar to car insurance, a medical device policy will cover the cost of the replacement value for the device should stock get stolen. However, a medical device policy can also be arranged to cover business aspects. Such as loss of revenue should it be a device that is leased out. This is a key part for small businesses that rely on a medical device to be able to carry out treatments for patients. This will then mean that the premium is increased as the insure will feel that they are taking a bigger risk should the device break or become lost.
Find out more on our medical devices page.
Can we help?
We have the ability to cover businesses that produce, design, or distribute any medical devices. We are able to work closely with insurers in the market to identify your businesses risks and exposures on the activities that the business undertakes. Understanding areas of exposure are an important part of any insurance in order to help the business continue to operate should an incident occur.
