SERVPRO of Northeast Fort Worth Explains Commercial Storm Damage Coverage for Medical Facilities

7/30/2022 (Permalink)

Blog Summary: SERVPRO of Northeast Fort Worth explains what commercial storm damage coverage hospitals and medical facilities need.

SERVPRO of Northeast Fort Worth provides commercial damage restoration services for all types of businesses, including office buildings, retail outlets, professional offices, banks, distribution centers, manufacturing facilities, schools, and daycares. The team at SERVPRO of Northeast Fort Worth also takes on the challenges of cleanup and restoration for hospitals and medical facilities. Certified, experienced, and well-equipped technicians understand the complexities involved in dealing with property damage cleanup and restoration in an environment with expensive and delicate diagnostic and treatment equipment, pharmaceuticals, biohazards, patient care, and food services. Clients and patients may have medical conditions requiring care ranging from minimal attention to full nursing care. Hospitals, nursing homes, and other medical facilities need a rapid response and quick completion of the cleanup and restoration process so that medical services and patient care can resume as soon as possible.

Commercial storm damage such as flooding can have a localized impact on a building or devastate a major metropolitan area or region. Water damage, a mold infestation, and structural damage are some of the consequences of a storm and flood damage disaster. Medical facilities bear a unique risk hazard in the event of a flood or storm damage disaster that interrupts operations and the provision of services. The administration may be compelled to relocate the current patient population while turning away new patients and people needing immediate medical attention.

A solid, well-configured business owners policy (BOP) is sufficient for most property damage disasters. However, many private insurers limit water damage coverage to certain types of water damage, such as damage from a ruptured pipe or roof leak. Losses from a hurricane storm surge (not an issue for the metro Dallas/Fort Worth area) or a natural disaster may end up being paid for by business owners. If financial resources are inadequate to cover the losses and make needed repairs, the entity may end up shutting its doors and declaring bankruptcy.

Full protection for a healthcare facility from flood damage may require the acquisition of coverage under the National Flood Insurance Program (NFIP). Flooding caused by an extreme weather event, such as a severe weather cell, tropical storm, or hurricane, would be covered by an NFIP policy.

Further protection may entail purchasing additional special policy endorsements. Listed below are some examples and a brief description of additional coverage the owners and operators of a medical facility should consider in consultation with their insurance agent.

• Building ordinance coverage
• Business vehicle coverage
• Special equipment coverage
• Spoliation and service interruption
• Rental coverage
• Inland marine coverage
• Business interruption coverage

Building ordinance coverage

This coverage pays for structural updates that must be made to a damaged building to maintain building code compliance. Covered upgrades can include ramp and elevator installation for patients in wheelchairs.

Business vehicle coverage

Vehicles such as patient shuttles, ambulances, delivery vans, or other business vehicles require insurance coverage for destruction and liability. A comprehensive commercial auto policy covers non-collision losses. An example of a non-collision loss would be windshield damage from a fallen tree branch or water damage to parked vehicles.

Special equipment coverage

The loss of one costly medical device could exhaust the BOP policy limit. Separate coverage of highly expensive medical equipment may make sense for a medical facility, especially if the equipment is essential for daily operations.

Spoliation and service interruptions

Flooding can interrupt utilities, causing the ruin or destruction of perishable goods. Utility and spoilage coverage may pay for the replacement of industrial items in industrial refrigerators and freezers. For a medical facility, this endorsement would cover not only food and drinks for food services but also human organs, blood bags, and possibly refrigerated pharmaceuticals.

Rental coverage

Leased dental chairs, x-ray machines, and other medical equipment, as well as any equipment not directly owned by a medical facility, should be protected under a rental insurance policy. A single piece of equipment could be valued at hundreds of thousands of dollars.

Inland marine insurance

Transportation and cargo insurance replaces any inventory or supplies destroyed or lost in transit to or from the medical facility. Examples would be custom prosthetics, medical supplies, or other items washed away by floodwaters or otherwise lost in transit.

Business interruption insurance

The most important commercial property damage insurance is business interruption insurance. Each day a medical facility is unable to provide services could be thousands if not millions of dollars in lost revenue, depending on the size of the facility or the medical system. Business interruption insurance can replace income lost during cleanup and restoration. Projected income from canceled procedures, payroll expenses, and out-of-pocket costs would fall under this coverage.

SERVPRO of Northeast Fort Worth is a leader in commercial property damage cleanup and restoration for medical offices, clinics, outpatient surgical facilities, and hospitals. Availability 24/7, 365 days a year, including holidays, a rapid response, a quick cleanup and restoration, and the ability to scale to meet the challenges of any size disaster make SERVPRO an excellent choice when flooding, water damage, fire damage, smoke damage, or a biohazard disaster occurs.

To learn more about commercial storm restoration, contact the SERVPRO of Northeast Fort Worth office at (817) 741-5737 or email office@SERVPROnortheastftworth.com