What It Covers
The core coverage in this program is general liability insurance, with a professional component that protects you and your assets against liability claims and judgments.
Claims of bodily or property damage can be brought by others against you at any time as a result of your operations, your completed operations (services) or your products. This coverage (subject to policy terms and conditions) pays, on your behalf, for the cost of defense and judgments that arise from incidences that occur in the course of you doing business.
It is an occurrence form, which is broader and more flexible than the more restrictive claims made form. This form is a key benefit.
In addition, and unlike other coverage plans, there is no deductible for defense costs and judgments. Our experience has taught us that deductibles are not needed to keep costs down.
Who Qualifies for this Program?
Companies (including certain manufacturers) that sell, service and repair medical equipment qualify for this program.
What are some examples of qualifying companies?
- Companies that sell new medical equipment
- Companies that purchase used equipment, refurbish it, and then resell the equipment to hospitals, clinics or physician offices
- Companies that purchase equipment but never touch it, then resell it to a third party (also known as brokers or manufacturers reps)
- Companies that have service agreements with hospitals, clinics or physician offices to service their medical equipment
- Companies that lease medical equipment to a third party (short-term or long-term)
- Companies that sell durable equipment to hospitals, clinics or physician offices
- Companies that manufacture non-invasive devices
If I am a new venture, will I qualify?
Yes. Newly established companies can qualify based on the work experience of the individuals involved in the company.
Do I have to be incorporated or an LLC to qualify?
No. You can be a sole proprietor, limited liability company (LLC) or corporation. How you establish your company does not affect your access to this program.
Occurrence Form vs. Claims Made Form
ProTek is one of the only occurrence form liability insurance programs available to medical equipment sales and service organizations. Other companies offer claims made insurance that can leave you unprotected when claims are made against you. ProTek is open-ended insurance, which provides better protection in the long run.
- Covers incidents occurring during the policy period no matter when they are claimed
- No time limit to file claims
- Not necessary to continue insurance coverage until claim is made
- No hidden or additional costs
- Easy to manage
Claims made form
- Incident and claim must be in policy period — otherwise no coverage
- No long-term protection
- Must be kept in effect for coverage
- Limited to policy and reporting period
- Actual cost unknown
- Must also acquire prior acts coverage
- More difficult to manage
Which policy would you rather own?
We have focused on medical equipment product liability insurance programs since 1990 and the occurrence form provides better protection for our clients. Our occurrence form policy covers incidents occurring during the policy period, regardless of when they are claimed.
We offer comprehensive forms of insurance coverage for all aspects of your business. Our professionals can customize a program to fit your specific needs, including property, automobile, cargo and transit, workers’ compensation, and stop loss maintenance coverage.
Is it difficult to get coverage?
Not at all. We make it easy to get a quote. Our clients also have exclusive access to special ProTek plans, including general liability, automobile, property, workers’ compensation and stop-loss maintenance insurance.
Why do some policies have a deductible?
Some insurance agents may tell you that they can save you money on your policy. But sometimes they don't tell you that saving you that money requires adding a hefty deductible to your policy. You can see anywhere from $500 to $10,000 on up for a deductible. The policy under the ProTek program does not include a deductible.
What does this mean for the insured?
Most often the deductible will be written on a per claim basis, which means if you have a $5,000 claim you will be coming out of pocket $5,000. Some carriers require that for anything less than $5,000, you pay first. Other carriers may pay the claim and then request that you reimburse them. The insurance carrier can afford to give you a lesser rate because there is a deductible in place to cover some or all of the cost of a claim. If you have to pay the deductible one time, any savings from a lower policy cost will be gone.
What does it mean to have a deductible on a per claim basis?
If you have a $5,000 per claim deductible, you will pay $5,000 per claim, even if there is only one event. Consider this example. An employee had a glass of water sitting next to several pieces of equipment that needed to be repaired. The water spills, damaging several pieces of equipment valued at $20,000 each. Each piece of equipment is owned by a different party. The insurance carrier could hold you responsible to pay $5,000 for each piece of damaged equipment – even though the damage was caused by one spill – stating that each equipment owned by a different party is considered a separate claim.