Future optometry business owner? The three aspects of practice insurance you need to know about

The scenario

I am about to own my optometry practice, and need to organise practice insurance. Could you please provide me with some advice on what a practice insurance policy should cover? I have also heard that having all my business insurance needs with one broker is more convenient. Is this correct, and how would I benefit from having my insurance policies in one place?

Jyoti, AOP member

The advice

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

Why do I need specific practice insurance?

Running an optometry practice means balancing patient care with business management, equipment investment, and regulatory compliance.

Optometrists face highly specialised risks, from handling patient data to operating diagnostic equipment that may not be fully covered by general commercial policies. A standard business package might miss nuances such as cover for damage to optometry equipment, loss of trading following regulatory investigation, or claims arising from clinical negligence. A specialist broker like Lloyd & Whyte can advise you on exactly what type of insurance coverage you need, taking into account the type of optometry business you run and the assets you need covering.

Even if you rent your optometry premises, you will still need coverage for your equipment and contents. Talking to a specialist optometry insurance broker can ensure you are protected at the appropriate level and with the correct policy.

What does practice insurance include?

1 Protection of your premises

Optometry practice insurance includes protection for the physical premises of the practice, as well as its contents. Having insurance that covers damage or loss due to events such as fire, theft or water damage is essential.

2 Public liability and employers’ liability

Optical practice insurance can include public liability insurance cover, which protects your practice from compensation claims should a patient or visitor become injured on the premises.

Employers’ liability insurance helps cover you for legal fees and compensation claims that could be made against you in the event of one of your employees suffering from work-related illness or accident. Employers’ liability is a legal requirement for businesses in the UK.

3 Business interruption insurance

Business interruption insurance is also commonly included in practice insurance, providing financial protection if your practice is forced to close temporarily due to a covered event, such as water damage or fire. This coverage helps cover income and fixed running costs.

Why you should also consider...

Cyber insurance

Although not part of a practice insurance policy, cyber insurance is part of Lloyd & Whyte’s offering. Optometry practices collect, store, and process sensitive data that can be valuable for cyber criminals. Arranging robust cyber insurance can cover costs related to ransomware, restoring data and systems, as well as legal costs and PR fees associated with restoring patient confidence and practice reputation.

Management liabilities

Directors’ and officers’ liability covers you for the personal liability risks faced under many areas of statutory and common law. This insurance can meet the costs of legal fees associated with any investigations or claims brought against you for alleged wrongful acts. The policy can also pay any settlements and awards that are required (not including fines or penalties).

Knowledge and understanding

Working with one broker allows for a more holistic understanding of your circumstances. They can identify gaps or overlaps in cover, ensuring that you’re neither underinsured nor paying for duplicate benefits. This coordinated approach can offer you peace of mind and the confidence that you’re in safe hands with a broker who takes time to get to know your circumstances and the coverage you require.

Read more

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