Do we need insurance for employee property?
Do we need insurance for employee property?
Question: We have a lot of employees using expensive items that are personally owned, such as laptop computers, not to mention everyday personal items such as jewelry. It is my understanding that our standard insurance may not cover those items.
Also, should we have an auto insurance policy that would cover hospital employees traveling in their own cars for hospital business, or is it sufficient to rely on their own private auto insurance?
Answer: Insurance coverage for personal items may not be easy to find and is probably not a good idea, says Sandy Mahon, vice president for risk management and quality assessment with Program Beta, the risk pool for hospital districts in California, based in Alamo. You are correct that the typical health care facility’s insurance policy would not cover the theft of personal property. Mahon says she does not know of any insurer willing to provide such coverage.
The coverage probably would not be worth pursuing anyway, she says. It would be nearly impossible to be certain that the personal property really was stolen from the health care facility; the possibility of fraud would be extremely high. In the case of a laptop computer theft, for instance, the employee may be able to rely on his or her homeowner’s insurance. Ultimately, the employee must be responsible for personal items brought to work.
"Educate your staff and remind them that they bring personal items to work at their own risk, whether it is a laptop they choose to bring in or a diamond bracelet," Mahon suggests.
Loss of employees’ personal property in a fire or other disaster may be different. In that case, the health care facility’s property insurance may cover the loss of personal property if the policy specifically includes that coverage. This is something to consider when obtaining property insurance, Mahon says. The coverage will cost extra, and Mahon says most health care facilities do not provide that coverage for employees. Once again, she says employees should be reminded not to leave personal items of substantial value in their offices or work areas.
The issue of car insurance is more easily answered. Mahon strongly recommends that health care facilities have "non-owned auto insurance" to cover employees using their own vehicles for work. Especially with more downsizing and mergers, many health care employees find themselves traveling routinely from one facility to another in their own vehicles and on company time. Their own auto insurance will apply if they have an accident, but that may not be enough. And since the employee was working at the time, the health care employer will be tapped as the deep pocket.
Mahon estimates that about half of all health care organizations carry such auto insurance. She says all of them should have it, especially since it can be very inexpensive. If you purchase auto insurance for company-owned vehicles, the insurer often will throw in non-owned auto insurance for free or just a nominal charge. But many insurers will not offer it if you do not ask for it.
"Your CFO may say it’s too expensive, and you should just rely on the employee’s insurance. But what if he’s covered for the state minimum, maybe $15,000, and he plows into the community’s leading thoracic surgeon?" Mahon asks. "The hospital will be on the hook anyway but without insurance to help out."
For more information, contact Sandy Mahon, Program Beta, 1443 Danville Blvd., Suite 200, Alamo, CA 94507. Telephone: (510) 838-6070. Fax: (510) 838-6088.
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