Sickness, parental leave, jury service: why business owners need locum insurance

The scenario

“I am a newly-qualified optometrist, and have unexpectedly been given the opportunity to open my own single testing room practice. As I will be the owner and resident optometrist, I have been told I need locum insurance to protect the business. I’m confused – is this type of insurance something I need as a business owner?”

Emma, AOP member

The advice

Emily Tyler, commercial development manager at AOP insurance affinity partner, Lloyd & Whyte

One of the important aspects of being a business owner is ensuring that your practice is protected from unexpected circumstances. One such form of protection is locum insurance.

What is locum insurance?

Locum insurance is designed to protect your business during times when you, or your staff, are unable to work. Various situations can arise that may require you to take time off, such as:

• Sickness: if you, or a member of your team, fall ill, locum insurance covers the cost of replacing you with a temporary locum optometrist
• Accidents: in the event of injury, the insurance helps cover the financial cost of finding a replacement
• Maternity, paternity and adoption leave
• Family emergencies: unexpected personal matters requiring time off can be covered by locum insurance
• Suspension: if you or your staff are temporarily suspended, locum insurance can help cover costs related to your absence
• Jury service: locum insurance covers your practice if you are required to serve on a jury
• Bereavement and compassionate leave: if you need time off, locum insurance ensures your practice continues running smoothly.

Locum insurance vs income protection

It’s easy to confuse locum insurance with income protection cover, but they serve different purposes:

• Income protection: This type of insurance provides personal financial support if you can’t work due to illness or injury. However, it does not cover the business
• Locum insurance: locum insurance is designed specifically to protect your business. If you are unable to work, it covers the costs of hiring a locum to temporarily replace you, ensuring your practice continues operating and avoiding financial losses.

As a business owner, you are responsible not only for your personal wellbeing but also for the continuity and success of your practice. Locum insurance ensures that your practice doesn’t suffer significant financial setbacks if you are absent for an extended period.

Locum insurance ensures that your practice doesn’t suffer significant financial setbacks if you are absent for an extended period

What to look for in a locum insurance policy

Several factors are crucial to ensure you choose the right policy:

1 Indemnity vs benefit-driven policies

Indemnity-based means you need to provide receipts for the locum staff you hire to claim, which might be a challenge if you struggle to find a locum for the full duration of your absence.

A benefit-driven policy, like those offered by Lloyd & Whyte, simplifies the process. You receive a pre-agreed amount without needing to provide receipts or proof of spending, making the claims process more straightforward.

2 Renewable and flexible coverage

Policies offered by Lloyd & Whyte are taken out in the business name and are renewable annually. The policy allows you to choose the level of coverage you need and decide when the payments start.

3 Benefit period

The benefit period refers to the length of time you can receive payments during a claim. Typically, this lasts up to 52 weeks.

4 Choosing the right provider

As an AOP member, you have access to specialised insurance services through Lloyd & Whyte. With over 20 years of experience in healthcare insurance, they are well-equipped to guide you in selecting the right policy for your practice.

Why do you need locum insurance?

As a sole optometrist and business owner, you are responsible for the continuity of your practice. Even with the best planning, unexpected situations, whether illness, injury, or personal emergencies, can arise, leaving your practice vulnerable. Without locum insurance, these absences could put your practice at financial risk. Locum insurance serves as a safety net, ensuring that your practice can continue to operate even when you are unable to work.

It is a vital consideration for any optometry practice – particularly for new business owners, when building and maintaining a stable practice is crucial. By selecting the right policy, such as the benefit-driven option from Lloyd & Whyte, you can ensure your practice remains operational and financially secure, even when you need to step away.

For more information and to discuss your options, contact Lloyd & Whyte at 01823 250760.

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