Free Travel Mug!For a limited time, receive a free AAHA Business Insurance travel mug when you request a business insurance quote*. Call 866-380-AAHA (2242) to learn more today!

With your new travel mug, the AAHA Business Insurance Program will be right at your fingertips. You can count on us as your business insurance resource for your veterinary practice.

*Quotes (for policies not currently placed through HUB) can include business property/liability, workers’ compensation, flood, employment practices liability, commercial auto, and much more!

*This newsletter contains only a general description of coverages and does not include all the benefits and limitations found in the policies. Coverages may vary. All references to coverage are subject to the policy’s conditions and exclusions. The insurance policy and not this newsletter will form the contract between the insured and the insurance company. Loss control content is provided for information purposes only. It is not intended to be a substitute for individual legal counsel or advice on issues discussed in this newsletter. For resolution of a specific legal issue or business concern, consult your attorney.

AAHA Business Insurance Program Business Property/LiabilityFloodUmbrella LiabilityWorkers’ CompensationCommercial AutomobileSpecial Coverage for Mobile PracticesEmployment Practices LiabilitySafety and Loss Control Resources

Call 866-380-AAHA (2242) today for a coverage evaluation.P.O. Box 1629, Chicago, IL 60690-9850 Fax: 866-381-AAHA aaha@hubinternational.com aahainsurance.org

Broker and Consultant:

HUB International Midwest Limited

HUB International Midwest Insurance Agency (CA)

Workers' Compensation Closed ClaimsThe Hartford—one of the primary insurance carriers for the AAHA Business Insurance Program—shared six recently closed Workers’ Compensation claims. Workers' Compensation provides payment for employees who experience job-related injuries or diseases, regardless of fault. The following claims come from veterinary practices and demonstrate the importance of maintaining workers’ compensation with an insurance carrier that provides a strong return-to-work program.

Employee trips while cleaning practice

While vacuuming the practice, an employee tripped over the vacuum’s cord. The employee attempted to break the fall, but sustained a wrist and hand fracture in the process, as well as a sprain to the forearm. The employee underwent physical therapy, and required an MRI to rule out additional injuries. Although the employee was released to light work duties, the employer was unable to make accommodations in

the practice and the employee remained off work. In addition to the incurred medical expenses, the claim settled with future medical care. The insurance carrier paid nearly $92,000 in medical expenses and indemnity.

Employee tears rotator cuff cleaning under table

An employee crawled underneath an antique wooden table to clean the floor. Due to the awkward posture in that...

New Benefits for Employment Practices Liability PoliciesThe AAHA Business Insurance Program now offers four enhancements to Employment Practices Liability policies underwritten by CNA.

Workplace ViolenceThis endorsement may provide coverage of up to $100,000 for fees and expenses incurred in connection with a Workplace Violent Act—i.e. if a practice owner or employee is the victim of deadly force or the threat of deadly force via display of a lethal weapon. Expenses may include a security consultant, PR consultant, counseling, security guard service and forensic analysis, depending on the situation.

BUSINESS INSURANCEnews for youPRODUCED BY HUB INTERNATIONAL MIDWEST LIMITED FOR THE AAHA BUSINESS INSURANCE PROGRAM

VOLUME 12, NUMBER 2, FALL 2017

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ImmigrationThe immigration endorsement covers up to $100,000 in defense costs for covered immigration claims arising out of an actual or alleged violation of the Federal Immigration and Nationality Act.

Crisis Event ExpensesThis endorsement may provide reimbursement for expenses related to a crisis event resulting from a wrongful employment practice. Crisis events usually occur if an executive is involved in wrongful employment practice, and the situation will likely result in a claim. Generally, expenses for such an event can include hiring an outside law firm, public relations firm, crisis management firm, or a forensic or security firm to manage press, publicity, etc.

Diversity Sensitivity TrainingThis endorsement may cover costs for diversity sensitivity training if the practice is obligated to conduct such training by reason of judgment, settlement or an alternative dispute resolution process, following a claim against the employer (if training is initiated and completed within 12 months of judgment).

All four of these endorsements are now automatically included in Employment Practices Liability policies underwritten by CNA through the AAHA Business Insurance Program.

*All of the coverages referenced above are subject to the terms, conditions and provisions of the policy.

Missing Employment Practices Liability? If you don’t have an EPL policy, how would you pay for a verdict award or settlement plus the legal fees, which can easily exceed $100,000?

Action Tip: Don’t get caught uninsured and paying out-of-pocket expenses that you can insure. Visit aahainsurance.org or call 866-380-AAHA (2242) for a quote.

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Download a Return-to-

Work booklet on how to

implement an effective

return-to-work program at

your practice. Visit

aahainsurance.org/safety.

Workers' Compensation Closed Claims

Industry Trend Alert: Auto Insurance Rates IncreaseAcross the insurance industry, auto insurance premiums in the US have increased substantially over the past two years and continue to rise. A number of factors have contributed to the growing price increases.

Distracted driving. According to the National Highway Traffic Safety Administration (NHTSA), as of 2015, 14% of all police-reported motor vehicle accidents1 were affected by distracted drivers. And while distracted driving is not exclusive to cell-phone usage, “nearly one-third of all US drivers 18-64 years old read or send text or email messages while driving2.” With more devices and in-car technology, US drivers have become more prone to distractions while driving.

Decreasing unemployment. More employees in the workforce means more people are driving to work, resulting in an increased amount of claims. Between 2006 and 2015, there was a correlation between the rate of employment in the US and the frequency of auto collision claims3. Following the Recession, employment rose and along with it the number of submitted auto claims.

More drivers on the road. Consistently low gas prices and a growing population means there are more drivers on the road today than there have ever been in the US. As of 20154, there are more than 218 million drivers on the road—68% of the US population. And, since the end of 2014, gas prices have remained relatively low. Between January 2016 and September 2017, unleaded gas prices averaged $2.26 per gallon5, incentivizing continued driving throughout the country.

Higher medical costs. The cost of medical treatment for someone involved in an accident and the costs of repairing a vehicle have continued to rise over the

last few years. Because of these increases, insurance companies are paying more for injuries and damages each year. In 2016, healthcare expenditures increased by 4.8% over the previous year, equating to an average of $10,345 spent annually per person in the US6. And with the increase in auto claims, insurance carriers are paying more for medical treatment following an auto claim.

Higher vehicle repair costs. The cost of car repairs has continued to rise and in 2016, costs increased by 2.7% from the previous year7. Technology is becoming more embedded in vehicles – a fender bender today will cost significantly more to repair than it did several years ago, due to newer technologies like sensors and cameras equipped in the vehicle.

While premium increases have a direct impact on personal and commercial auto insurance, other insurance coverages can also be affected due to the increased frequently and severity of claims paid out by the carriers. In other words, your personal or business insurance coverages could see steady premium increases in coming years to compensate for losses insurance carriers are paying out for auto claims.

1 Distracted Driving 2015. https://crashstats.nhtsa.dot.gov/Api/Public/ViewPublication/8123812 Investigation and Prosecution of Distracted Driving Cases. https://www.nhtsa.gov/sites/nhtsa.dot.gov/files/documents/812407-distracteddrivingreport.pdf3 More on Employment and Claim Frequency. http://www.iii.org/insuranceindustryblog/?p=44044 Highway Statistics 2015. https://www.fhwa.dot.gov/policyinformation/statistics/2015/dv1c.cfm5 Bureau of Labor Statistics. https://data.bls.gov/timeseries/APU0000747146 CarMD Vehicle Health Index. https://www.

carmd.com/wp/wp-content/uploads/2017/04/CarMDVHIAPR17_final_embargo022517.pdf7 More Accidents, Larger Claims Drive Costs Higher. https://www.iii.org/sites/default/files/docs/pdf/auto_rates_wp_092716-62.pdf

Safety Tips for Drivers at Your Practice

If your practice owns mobile units or commercial automobiles, or if employees drive their personal vehicles on behalf of the practice (even for quick errands), here are some safety tips:

• Run Motor Vehicle Reports on driving employees

• Apply a no cell phone usage policy while driving

• Obey local traffic laws, including speed limits and seat belt use requirements

• Make adjustments to driving for weather and traffic conditions

• AAHA Business Insurance Program experts can help you navigate increasing costs, and provide strategies for implementing safe driving procedures in your practice.

For more information on safety in your practice, contact the AAHA Business Insurance Program! Visit aahainsurance.org or call 866-380-AAHA (2242).

Why join the AAHA Business Insurance Program? Here’s what your colleagues say:“We recently switched our policy over and that is never an easy thing to do. After a few snags, I came in contact with Alvina Wilkerson (HUB Account Manager) who stayed on the phone with me for almost an hour. She understood my concerns and approached the issues as if they were her own. Being in the business of customer service, I know how rare that is. Ultimately a problem that had been ongoing for a few weeks was solved because of her tenacity, commitment to get this resolved and unwillingness to ‘pass the buck.’ Alvina should be commended for her work ethic and her stellar customer service skills!”

—Adrienne Leyland, Practice ManagerKC Animal Hospital and Pet Resort

Move your portfolio to the AAHA Business Insurance program today! Visit aahainsurance.org or call 866-380-AAHA (2242) to learn more.

...position, the employee sustained a left shoulder injury. An MRI revealed the employee had torn a rotator cuff, requiring surgery, along with follow-up care and physical therapy. The employee’s workload was modified to accommodate the injury. The insurance carrier paid almost $60,000 in medical expenses and indemnity.

Delayed treatment to cat bite requires surgery

While an employee was cleaning a cat’s cage, the cat escaped. When the employee retrieved the cat, it bit the employee on the index finger, causing a puncture. The employee did not immediately seek treatment of the bite and waited several hours before visiting an urgent care facility. The employee was treated for an infection. Two days later, the infection had worsened and the employee was admitted to a hospital for emergency surgery. The employee was out of work for nearly three weeks and required six weeks of physical therapy, medication and treatment. Following successful treatment, the employee resumed to full work duties. In total, the insurance carrier paid more than $53,000 in medical expenses and indemnity.

Cat bite causes serious infection

A technician was holding a cat for the veterinarian when the cat became aggressive. The cat bit the employee’s hand and finger. The employee did not immediately seek medical attention, resulting in a serious infection. The employee was admitted to the hospital for two days and placed on heavy antibiotics. An MRI confirmed the infection had not spread outside of the hand and finger. The insurance carrier paid more than $21,000 in medical expenses.

X-ray equipment crushes employee’s foot

A veterinarian and employee were moving x-ray equipment inside the practice, when the roller wheels jammed. The veterinarian helped push the equipment, but a wheel ran over the employee’s foot. The employee’s foot was fractured and an MRI revealed the injury required surgery. Surgery was performed almost four months after the incident and additional post-operation treatment was needed. In total, the insurance carrier paid nearly $17,000 in medical expenses and indemnity.

Routine Movement at Front Desk Results in Serious Knee Injury

An employee was working at the front desk and turned around to swipe a customer’s credit card. As the employee turned, a pop was felt in the left knee. The employee sustained a knee injury, requiring medical exams, an MRI, surgery, x-rays, medication, durable medical equipment and physical therapy. Following treatment, the employee was released to light duty in the practice. In total, the insurance carrier paid over $15,500 in medical expenses and indemnity.

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