Business Protection

An integral part of maintaining the growth and success of your medical practice in the long term is ensuring that you protect against the loss of key staff members. Without them, the viability and reputation of the practice may be threatened. That’s why, at MPFS, we are here to help you identify the ways in which you can ensure this doesn’t happen by providing you with access to a range of business protection products uniquely tailored to the medical and pharmaceutical industry. Whatever your current needs may be, we can help you gain peace of mind knowing your business is sheltered from any potential financial or operational fallouts.

We have identified some of the most valuable business protection types that are best suited to the medical and pharmaceutical industry:

• Key Person Insurance: This type of cover provides protection against the loss of an extremely valuable, key member of staff where the loss gives rise to substantial negative financial and operational implications for the medical/pharmaceutical practice. You may consider taking out this cover for a practice manager or clinical director. Key person insurance pays out a lump sum in the event of death or diagnosis of a serious illness of the person for which the cover is taken out. The payout provides you with a significant cash compensation which can ensure continuity of business and protection against any bank loans or debts which involved the said key staff member. It can also assist you in recruiting staff to substitute for the key person’s absence.
• Shareholder Protection Insurance: This type of cover provides you with the necessary funds to purchase a deceased partner’s or shareholder’s stake in the practice. A lump sum is released which enables you to buy the late owner’s shares from their estate /dependents. This type of business protection cover serves to help you retain control of the business in the event of a shareholder’s death, and this is vital if the person in question held a controlling interest in the practice. Cross option agreements backed by a policy under trust may be available (cross option agreements impose that the buying and selling of shares between the remaining partners and the estate must be conducted within a specified time frame and that the remaining shareholders will each purchase the deceased owner’s shares in the same proportion as to their current holdings in the business). Some insurance providers offer flexible arrangements which can include serious illness cover as part of this plan.
• Medical Malpractice Insurance: This type of cover provides protection against any potential claims of negligence brought forward by a patient you cared for during treatment or therapy. MMI can provide you with protection against several different types of damages including bodily injury or death, breach of confidentiality, loss of documents and Good Samaritan Acts liability.