This report originally appeared in the April 2010 issue of DOTmed Business News

In its simplest terms, insurance is about protecting assets. While this may seem like something easy to do, for many insurance underwriters and brokers who deal in the specialized medical equipment industry, it is not always the simplest message to get across to their clients - particularly in an economic climate where sales are down and business owners are dissecting closely where every dollar goes.

As more insurance companies are battling over the companies who are selling and servicing equipment, decisions get more complicated about what type of insurance is necessary to truly protect one's business.
"I think the most important thing that people need to be concerned about in this economy is how to protect your assets properly and make sure it's being done by someone who understands the medical device business or industry," says Dan Schneider, principal of The Schneider Group, an insurance brokerage and underwriting firm that has served medical device sales and service organizations for more than two decades. "We obviously feel after 20 years of specializing in this field that we do understand the history and from time to time, see people who don't."

Schneider warns that making insurance decisions based strictly on costs can be costly down the line. An insurance policy doesn't do you any good if you need to file a claim on something and the carrier is out of business or is unwilling to settle any claims.

"That [basing your decision on price alone] is not always the right thing to do. Just like with anything you buy, with insurance, the lowest price isn't always what it appears to be," he says. "You need to look for competitiveness, but not just at price. Urge people to be more diligent on how they insure and who they insure with."

For those insurance agencies and brokers dealing with medical equipment, there are several types of property and casualty insurance available through different insurance carriers.

"We have access to a lot of companies, so our ability to place coverage for clients is a lot broader than the guy down the street," says Charlie Tice, a broker with The Paterson-McKenna Agency, Inc. "You can almost always find someone to insure someone in the medical device industry."

Factors that will affect the premiums and the policy include experience, number of workers, location and their loss history.

"When someone is going to choose, what we can offer is a wide array of options," Tice says. "If someone comes to me and says they are looking for an insurance quote for their business, I will offer different proposals through different carriers so they can make a decision they feel is right for them."

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