Why NOT Reviewing Your
Veterinary Professional Liability
Insurance Policy Each Year
Can Come Back to Bite You
Do you have enough veterinary professional liability insurance coverage?
When veterinarian C.B. was treating a dog for seizures, he did not intend for the animal to die. Nor did he know that the court would find him guilty of malpractice and order him to pay the owner $39,000.1
If you believe this cannot happen to you, think again…
Owners of pets, horses and livestock file lawsuits every day against the veterinarians with whom they once trusted with their animals. Lawsuits for malpractice, negligence and many other reasons. Lawsuits that could cost hundreds of thousands of dollars.
That is why ALL veterinarians should have veterinary professional liability insurance.
The Risks of Having the
Wrong Veterinary Professional
Liability Insurance Policy
But not all veterinary professional liability insurance policies are the same. And many standard plans do not cover you for things that can happen any time. Or they may have exclusions for things you take for granted. But there are policies that can protect you.
That’s why having a specialist in veterinarian insurance review your veterinary professional insurance policy each year can save you from worry and unnecessary financial risk.
Think of the costs you can incur if your current veterinary professional liability insurance policy does not provide the right coverage.
If you are an employer, then you could be financially responsible for something one of your staff members did to injure or cause death to an animal in your care.
You see, the costs from defense attorneys and the court system can add up… very fast. Plus, claims in the legal system can take months or years to resolve. This can deplete your savings and put you in debt… perhaps for the rest of your career if you do not have the right protection.
If the legal fees deplete your policy limits, you are personally responsible to pay them.
Plus, if the court finds you guilty and orders you to pay the plaintiff, you will have to pay. Even if you have large debts or a lack of assets. And if you do not have insurance to cover this loss, the court could garnish your wages to pay for it. This of course may vary by state.
That is why it is so vital for you to make sure you have the right veterinary professional liability insurance policy to cover you.
There’s more. Changes in our legal system also can impact your liability.
Veterinary Malpractice Law
Now Regards Pets as a
Special Treasure
The thing is, veterinary malpractice law has evolved in the past 50 years.2 In the past, courts supported the view that pets are property or chattel. Yet they now recognize that some pets have value to their owners greater than their market value. The value of each pet may vary by special characteristics, market value and emotional connection to the pet owner, such as as a treasure, companion and protector.
This evolution has impacted the outcomes of cases involving malpractice. When evaluating each case, lawyers often will often see if the actions of the veterinarian fit into standard of care. They also see if the actions were the cause of the injury or death of the pet.
If the court finds the plaintiff suffered a grievous loss, it can assess damages based on the severity of the loss. The emotional connection of the pet-owner to his or her loss of companion pet can exceed the market value.
Its no surprise that in a litigious society such as we have in the U.S., that the number of malpractice claims are rising. The damages are increasing too.
Defending against malpractice claims is more expensive each year. Now, more than ever, veterinarians need professional liability insurance to guard against defending such malpractice claims. Which is why having a yearly review is smart to do.
Jury Awards Dog Owner
$39,000 in Malpractice Suit
Against Veterinarian
A Superior Court jury in Santa Ana California found veterinarian C.B. guilty of malpractice.1 The jury awarded the plaintiff M.B. $39,000 for the death of his dog.
The plaintiff brought his Labrador mix to a nationally renowned Animal Referral Center in Fountain Valley. The dog was suffering from seizures. The veterinarian treated the dog for the illness and complications. He charged fees amounting to $24,000.
Despite the treatment, the dog still died.
The jury cleared the animal clinic and another veterinarian R.R. of wrongdoing. Yet it found veterinarian C.B. was liable for the dog’s death.
Because of the verdict, the jury ordered the veterinarian to pay the dog owner $9,000 for the veterinary bills. Plus, they ordered the veterinarian to pay $30,000 for the dog’s unique value to the owner.
This case is evidence that juries are placing a high value on the loss of a pet. A trend that is likely to continue with higher rewards for deaths and injuries due to veterinarian malpractice.
Georgia Supreme Court Rules
Pet Owners May Seek to
Recoup More Than It’s
Fair Market Value
Georgia State Supreme Court ruled in 2016 that an owner can sue to collect costs incurred when someone, such as a veterinarian, injures or kills their pet.3
The unanimous Georgia Supreme Court opinion written by Chief Justice Hugh Thompson
states “if an animal is injured through negligence and dies as a result of those injuries, the owner can seek the animal’s market value, plus interest and expenses incurred by the owner in an effort to cure the animal.”
The case started when Robert and Elizabeth Monyak sued the Barking Hound Village kennel in Atlanta and its manager. They claimed negligence, fraud, and deceit in the death of their dog Lola.
The Monyaks boarded their two dogs – Lola and Calle – at Barking Hound Village for 10 days in May 2012. They say kennel staff gave Lola medication intended for Callie, which they say caused kidney failure that led to her death nine months later.
The Monyaks said they spent $67,000 on veterinary and related expenses. This includes regular dialysis treatments, trying to keep their dog alive. Their suit sought to recover that sum.
Texas District Court
Awards Plaintiff
$39,212 for Damages
Dog owner Carol Schuster in Austin Texas brought an action against a groomer for damages resulting in the loss and death of her dog.4
She had brought her fourteen-month-old miniature schnauzer, Licorice, to a Petco store for a grooming. Yet upon her return to get Licorice, she saw the dog run away into a high traffic area. An employee had taken the dog outside for a bathroom break. But the employee had not held onto the leash. Later, car traffic ran over the dog and killed her.
Schuster sued for damages. She requested $645,000 in mental anguish while searching for Licorice. Another $160 in counseling costs following the death of the dog. Plus $280,000 in damages for “loss of companionship” and $1 million more for exemplary damages. Plus, attorney fees.
The district court awarded her a total of $39,212 for damages. This included $10,000 as compensation for mental anguish and emotional distress. Plus $10,000 as compensation for ‘intrinsic value’ in the ”loss of companionship.”
The defendant appealed the trial court’s decision. The Court of Appeals, however, did not agree the dog owner should receive damages for mental anguish or intrinsic value.
Nonetheless, this case does show a trend in which trial courts are awarding plaintiffs with money for emotional grief and loss of companionship. Far greater than the cost to replace the pet.
This trend is likely to continue with future lawsuits. A trend that can affect veterinarians who the courts find guilty of malpractice.
Types of Claims You May
Need to Defend Yourself
Against
There are many types of claims veterinarians may defend themselves against. These include:
- Malpractice
- Negligence
- Gross negligence
- Intentional and negligent infliction of emotional distress on the owner
- Duties of a bailee
- Violation of a contract – either written or oral
- Deceptive trade practices
- Taking (from actions by agents of the government)
Lawsuits can be very costly. Even if you are NOT guilty. And even in states that encourage arbitration or other methods of dispute resolution. You must consider the costs for lawyers, court fees, expert witnesses and more. Plus, you must also consider the costs to your reputation.
Insurance companies are also at risk. That’s why they prefer to settle claims early.
A Hammer Clause Can
Shock Most Veterinarians
Who Are Not Guilty
But veterinarians who choose to fight the claim and defend themselves must also make a big decision. That is the hammer clause which often shocks veterinarians when they learn about it.
A hammer clause can be in your liability insurance policy. If it is, it allows the insurance company to shift the burden of damages awarded above a certain settlement to the defendant veterinarian.
For example, if your client sues you for $40,000 and later offers to receive $10,000 from you to settle the case, your insurance may urge you to accept. If you accept, the insurance company will pay that amount.
But if you decline to pay this amount because you want to prove your innocence, and you lose your case with the court awarding the plaintiff $30,000, you may have to pay $20,000. Plus, the legal expenses after when you disagreed with the insurance company’s recommendation.
That’s because the hammer clause protects the insurance company against any claims higher than what the plaintiff originally agreed to receive from you – if you settled out of court.
That’s not all.
Many liability insurance policies include not only a hammer clause, but also a consent to settle clause. A consent to settle clause requires the insurance company first get the veterinarian to agree to settle the claim. This leaves the veterinarian with all the risk. You must decide if you want to accept the amount to pay to settle, even if believe you are not guilty, or if you want to pursue the lawsuit and be personally liable for all legal fees.
The thing is, the settlement offer does not just have to come from the plaintiff. It can come from the insurance company too per the hammer clause if it believes it is an amount the plaintiff would accept.
Other Costs to Consider
Some veterinary professional liability insurance policies may have limits on how much they will cover for legal costs. This includes both attorney fees and court costs. If you exceed these costs – either in a case, or throughout the policy term, you will be liable to pay for these.
Why You Must Have Veterinary
Professional Liability Insurance…
But Not All Policies
May Fully Protect You
Veterinary professional liability insurance protects you from financial risk due to errors and omissions you make in your practice. The kinds of errors and omissions that hurt or result in a loss to pets, horses and livestock or their owners.
You see, you are not immune to financial risks involved in the practice veterinary medicine. Whether you have your own practice or work for clinic or hospital. You can still make an error or omit something that results in injury or death to the animal.
Errors such as…
- Negligence involving diagnosis, treatment and surgeries
- Injuries caused to the animal while under your care, even if you did not do it
- Failure to diagnose and/or treat the illness
- Providing the wrong treatment, medicine or advice
Veterinary professional liability insurance goes toward paying for your legal fees – which can add up fast – when you need to defend against the claim.
If you are an employer, then some types of veterinary professional liability insurance can also extend to your employees. Or if you are self-employed or an independent contractor, you should get a policy for your services.
But if you are an employee, do NOT assume your employer has veterinary professional liability insurance that protects you. That is why you should have your own policy all the time. Even if your employer has liability insurance that protects you, it may not cover you for any work you perform outside of your employed duties. For instance, any relief or emergency work. Or even part-time work.
What a Yearly Review of Your
Veterinary Professional Liability
Insurance Can Do for You
Things in both the insurance and legal worlds can change. That is why it is best for you to have an expert in insurance for veterinarians to review your current veterinary professional liability insurance policy.
There is a good chance that your current policy – or the one that you may be thinking of getting – may not provide you with the right coverage. Or it may contain exclusions for something that can cost you in the future. Or it may include a hammer clause.
The good news is a review can be free. So, it would make good sense for you to accept the offer of a review from a specialist in veterinarian insurance. You’ll find out what your current policy is missing. Plus, what policies may provide better coverage. And you may be surprised at the possible lower costs than you are paying now.
Just think about the time and stress involved if a lawsuit should occur. Having the right policy can give you peace of mind. To protect your finances. And your reputation. So, you can spend your time caring for animals. Not having to worry.
Isn’t it time now for you to have an expert review your professional liability insurance?
About Veterinarian Insurance
This blog article is presented to you by Veterinarian Insurance. Founded by Jack Lungmus, a specialist in financial risk management for veterinarians for over 40 years.
Go here to schedule a FREE consultation or call Jack Lungmus at 800-860-2862.
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References
1. http://articles.latimes.com/2004/feb/24/local/me-dogsuit24 Los Angeles Times; Jury Awards Dog Owner $39,000 in Malpractice Suit; Renaud, J.-P.; February 24 2004
2. https://www.veterinarypracticenews.com/about-veterinary-malpractice-insurance/ About Veterinary Malpractice Insurance: As the Way Courts Have Viewed Animals Has Shifted, from Property to Companions, the Costs of Defending against Malpractice Claims Continue to Rise.; Maffai, M.; September 18 2015
3. https://www.apnews.com/ac07bdaabdec4572870428abbfb717a4 Associated Press; A Dog’s Value? Court Says Market Value Plus Medical Costs; Brumback, K.; June 7, 2016
4. https://www.animallaw.info/case/petco-animal-supplies-inc-v-schuster Michigan State University Animal Legal & Historical Center; Petco Animal Supplies, Inc., Appellant V. Carol Schuster, Appellee; 2004
