Every day, veterinarians help pets, farm animals and zoo animals recover from injuries and illnesses. Unfortunately, some animals are unable to recover. In some cases, this results in claims of negligence and even lawsuits, which makes veterinary professional liability insurance an important type of coverage for vets.
What is veterinary professional liability coverage?
Veterinary professional liability insurance, also called veterinary malpractice insurance, is similar to the medical malpractice insurance that doctors carry but is designed specifically for the veterinary industry.
A lawsuit may occur if a veterinarian makes a mistake or omission in treating an animal and it harms the animal, or if someone claims the veterinarian made such a mistake. Consider the following scenarios:
- A veterinarian misdiagnoses an animal with a less serious condition and sends the animal home with its owner. Overnight, the animal’s condition worsens and the animal dies.
- A veterinarian prescribes medicine for an animal, but the dosage is wrong for the animal’s size. The animal dies as a result.
- A veterinarian agrees to see an exotic animal without mentioning a lack of experience with this species. The veterinarian overlooks a health problem that is common in the species, and the animal dies due to a lack of treatment.
- An animal is staying overnight after surgery. However, unknown to the pet’s owner, the veterinarian does not have someone onsite to monitor the animal at all times. The animal dies during the night.
- A veterinarian has two dogs of the same breed and age in their care. One dog is there to be neutered but, due to a mix-up, the veterinarian performs the surgery on the wrong dog.
General Liability Insurance Does Not Cover Veterinary Malpractice
It’s important to understand that while commercial general liability insurance provides important coverage for veterinarians, it does not cover malpractice lawsuits or claims of professional negligence.
General liability insurance does provide coverage for third-party property damage and bodily injury claims, but it does not provide coverage for claims involving professional liability. For example, if a pet owner slips in a puddle and injures herself, general liability insurance may cover the claim. However, if a veterinarian is sued because a pet died while in their care, a veterinarian professional liability policy may cover the claim. This is why veterinarians should maintain both types of insurance coverage.
Other types of coverage veterinarians may need include commercial property, commercial auto, employment practices liability, workers’ compensation, and business interruption insurance. Each veterinary practice faces different risks, so it’s important to consult with a trusted insurance advisor.
How much veterinary malpractice insurance do you need?
The amount of veterinary malpractice coverage you need to protect your business will depend on many factors, including your location and the types of animals you treat.
The law typically considers animals to be property, meaning the pet’s owner may only be entitled to the cost of veterinary care and “fair market value” of the animal. For common pets, such as dogs or cats, this fair market value is not high. However, some rare breeds are worth significantly more, and racehorses may sell for millions of dollars. A veterinarian who regularly sees high-value animals may therefore need higher limits.
Consider the following lawsuits involving claims of negligence and omissions by vets:
- A family in Portland, Oregon, filed a lawsuit seeking $10,000 in actual damages, as well as $10 million in punitive damages, against an animal hospital and its veterinarian intern after their dog died. According to Oregon Live, the dog vomited into his lungs while under sedation and then died of a heart attack the next day.
- A woman in Illinois filed a $50,000 malpractice lawsuit alleging negligence that resulted in the death of her dog. According to Patch, the woman says the vet clinic misrepresented its credentials, failed to keep written records and failed to properly diagnose the dog and create an appropriate treatment plan.
- After a prescription supplement caused the death of 21 polo horses, a lawsuit was filed against the compounding pharmacy that made the supplement and the vet that prescribed it. According to Courtroom View Network, the lawsuit was for $4 million.
People Love Their Pets
To many people, pets aren’t just animals or property, they’re family. When something goes wrong, pet owners may be angry and look for someone to blame. Sometimes, this leads to large lawsuits alleging emotional distress and suffering. Pet owners may seek large sums to punish the veterinary clinic they feel is responsible. Even if these lawsuits are unsuccessful, the cost of defense can be a significant burden for veterinary clinics.
Furthermore, as the importance of pets continues to be elevated, laws may change, making it easier to sue veterinary professionals for larger sums. For example, The City says pet owners in New York have pushed for a bill that would make it easier to sue veterinarians in the state. Veterinarians should keep an eye on legislative and legal trends to determine whether these warrant additional insurance coverage.
Questions to Ask About Your Coverage
When comparing coverages with your insurance broker in order to select the policies that meet your needs, it’s important to pay attention to certain terms that could impact your coverage.
- What are the limits? Your policy will likely have both a per-occurrence and an aggregate limit. Consider both.
- What is the period of coverage? A claims-made policy will only cover claims that are reported while the policy is in effect, while an occurrence policy will cover claims for incidents that occur when the policy is in effect, regardless of when the lawsuit is filed. This could be important, as there may be a delay between the incident and the related lawsuit. If your claims-made policy ends during that time, you won’t have coverage. However, it is possible to extend your coverage period with tail-end coverage.
- Are you required to accept the settlement the insurer wants? Some policies contain what is known as a “hammer” clause. This allows the insurer to penalize the policyholder for refusing to accept a settlement.
- What are the exclusions? Policies commonly exclude malicious or criminal acts; your policy may have other exclusions as well. Also consider whether your policy excludes any individuals. For example, if a veterinary intern, technician, assistant or receptionist injures an animal, will the policy provide coverage?
- What are the reporting requirements? Most insurance policies require prompt reporting. You may need to report an incident as soon as you become aware of it, even if the owner has not filed a lawsuit. For example, you may need to report if a pet dies and the owner expresses anger and blames you. Your insurer may be able to help you navigate the incident to avoid escalation.
Protecting Your Clinic to Continue Caring for Animals
Veterinarians typically choose their careers because they love animals and want to help them. But, veterinarians are also humans and make mistakes, especially when working long hours. Having the right insurance in place can help protect your veterinary clinic, allowing you to continue helping animals.
Does your veterinary insurance coverage include adequate professional liability insurance? Higginbotham can help you put together an insurance package that protects your clinic. Request a free, no-obligation quote to get in touch with one of our business insurance specialists.
