Insurance Protection for Health Care Facilities - Glossary of Insurance Products
PROPERTY:
COMPOSITE RISKS PROPERTY INSURANCE
This policy covers physical loss or damage to the Health Care Facility's buildings and contents and other insured property as a result of fire, explosion, natural disasters, theft, vandalism or accidental damage. Natural disasters covered include storms, wind, water, flood, lightning and earthquakes. The policy can also be extended to cover loss of gross profits and additional costs to keep the Health Care facility operating, loss by employee dishonesty, property in transit, machinery breakdown and electronic equipment.
CONSTRUCTION INSURANCE
This policy covers contract works (made up of contract price, material or items supplied by the principal and escalation allowance) and the policy can also provide cover on tools, equipment, temporary buildings, scaffolding, hoardings, formwork and false work, demolition, clearance and removal of debris, architect, engineers', surveyors' and consulting fees, construction machinery and existing permanent buildings or structures held in care, custody or control of the principal, contractor or sub contractor. This policy has two expiry dates, the construction period expiry date and the maintenance period expiry date. Where an existing building is being altered, extended, added to or renovated, the construction policy should include an amount to cover loss or damage to the existing building(s).
ELECTRONIC EQUIPMENT
This type of insurance covers repair or replacement costs to electronic equipment due to electronic, electrical or mechanical breakdown. The cover can extend to insure (Section 2) costs of reconstructing damaged data media and (Section 3) the increased costs of working for the use of substitute equipment in order to maintain business operations.
EMPLOYEE DISHONESTY (FIDELITY GUARANTEE)
This type of insurance covers the Health Care facility's money, negotiable instruments, goods or other property against theft, embezzlement or misappropriation by employees.
GOODS IN TRANSIT INSURANCE
This type of insurance covers property against loss or damage by the perils covered in the selected cover option whilst in transit anywhere in Australia by road transport, rail, sea, air or post.
MACHINERY BREAKDOWN
This class of insurance covers non-maintenance repair costs due to sudden damage.
Where larger valued items are insured separately, each item has a separate sum insured representing the estimated maximum repair cost and this is our limit of liability. More commonly, items are not listed and are all insured under a "blanket" policy in which case the limit of liability is the maximum amount payable for repairs for any one machine or item of plant.
A combination of Specified and Blanket cover is available.
MOTOR INSURANCE
Motor Insurance can cover all types of sedans, station wagons, 4-wheel drives, utilities, tractors, trailers, buses and other registered vehicles against loss or damage. All drivers are covered, provided that the driver complies with the policy terms and conditions.
The policy also provides $30,000,000 legal liability protection for damage to vehicles or other property belonging to third parties.
PLUVIUS INSURANCE
This policy is designed to reimburse the costs, expenses and non refundable charges incurred for a fete, social or other fund raising activity where rain would be likely to cause a reduction in support and income.
MAJOR PROPERTY EXPOSURES
Buildings and Contents (fire) Air conditioning (breakdown) Renovation (accidental damage)
LIABILITY:
DIRECTORS' and OFFICERS' INSURANCE
Health Care Facilities need Directors' and Officers' insurance for claims made against them by reason of a wrongful act committed or alleged to have been committed in their capacity as a Director or Officer of the Health Care Facility.
It also indemnifies the Health Care facility against any payment it elects to make and is legally entitled to make in respect of any claim made against a Director or Officer.
A wrongful act as defined by our policy is, "any actual or alleged breach of duty, breach of trust, neglect, error, misstatement, misleading statement, omission, breach of warranty of authority or other act done or wrongly attempted by any Director or Officer.
Actions may be brought against Directors and Officers by employees, patients, competitors, shareholders, creditors, members of the public, the trade practices commissioner, commissioners for taxation etc.
EMPLOYMENT PRACTICES LIABILITY INSURANCE
This policy covers the Health Care facility as well as past and present Directors and Officers and all employees.
The policy covers the following:
- Wrongful refusal to employ an applicant for employment.
- Wrongful failure to promote an employee.
- Wrongful demotion, negligent reassignment or disciplinary action.
- Wrongful termination of employment, including constructive dismissal.
- Sexual harassment.
- Unlawful discrimination which may include discrimination on the grounds of race, colour, sex, sexual preference, age, physical or mental disability, marital status, family responsibilities, pregnancy, religion, political opinion, national extraction or social origin; and
- Oral or written publication of material that slanders, defames or libels an employee or violates or invades an employee's right of privacy.
The term wrongful is defined as meaning unfair or unlawful.
MEDICAL MALPRACTICE
This policy provides cover in two parts.
- Section 1 - Public Liability.
- Section 2 - Medical Malpractice.
(i) PUBLIC LIABILITY- This section will pay on behalf of the Health Care facility, compensation that it is legally liable to pay to third parties in respect of:
- Personal Injury.
- Property Damage.
- Advertising Liability.
The term personal injury most commonly refers to bodily injury, death, sickness, disability or mental anguish.
Property damage encompasses physical damage or loss of property along with loss of use of property even if the property in question has not been damaged.
Examples of advertising liability include libel, slander and infringement of copyright.
The policy also provides cover for liability arising out of the client's products. "Products" means anything which is manufactured, constructed, erected, installed, repaired, serviced, treated, sold, supplied or distributed by the Health Care Facility (including packaging and containers) in the course of business, and after it has ceased to be in the physical custody or under the legal control of the Health Care facility (ie. goods sold from a canteen, kiosk or at a fete).
(ii) MEDICAL MALPRACTICE - This section provides cover for Medical Malpractice and indemnifies the client for claims made during the period of insurance which arise or are alleged to have arisen out of an act, error or omission or negligence in the provision of professional services (malpractice).
Some features and benefits of the Medical Malpractice section are:
- Coronial Inquiries - the provision of legal costs for the attendance at any Coronial Inquiry that the insured is required by law to attend.
- Good Samaritan Acts - indemnity for any medically qualified employee for claims arising from Good Samaritan Acts performed during travel between the employees residence and the insured institution.
- Non imputation - where the policy covers more than one insured:
- Failure by an insured to advise any matter required to be disclosed to Catholic Church Insurances Limited.
- Failure by an insured to comply with the conditions of the policy.
- Shall not be imputed to any other insured.
- Fraudulent, criminal or malicious acts of employees - indemnity is provided for claims brought as a result of such acts committed by an employee.
- Trades Practices Act - indemnity for claims resulting from conduct that is misleading or deceptive and contrary to the Trades Practices Act or Fair trading Act.
- Loss of documents - indemnity for loss of documents.
WORKERS COMPENSATION INSURANCE
Where cover is required by law for injuries to employees received during working hours whilst in the Health care facility's employ.
MAJOR LIABILITY EXPOSURES
Public liability (injury) Malpractice (negligence in the provision of professional services) Employment Practices (wrongful dismissal) Workers Compensation (employee injury).
OTHER BENEFITS:
PERSONAL ACCIDENT and ILLNESS INSURANCE
This policy offers Personal Accident or Personal Accident and Illness insurance for the Board member, employee or administrators of the Health Care facility. Loss of these people from the organisation's usual activities will mean that there will be a need to substitute the person and pay the market rates for replacement of such personnel.
This insurance provides lump sum and weekly benefits for events caused from an accident or illness. The provisos in the policy wording should be read carefully as they set out the limitations in terms of maximum compensation payable under the policy.
PERSONAL ACCIDENT FOR VOLUNTARY WORKERS INSURANCE
Voluntary Workers Personal Accident insurance provides personal accident protection to volunteers whilst participating in such activities as cleaning, patient support, working bees, canteens and Kiosk's help. Lump sum benefits are provided for accidents and typically it covers death, permanent disablement and other listed events. Weekly benefits are also available, as are limited medical expenses.
Cover generally is limited to people aged between ten and 80 years of age.
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