Health care clients that partner with AFM enjoy broad coverage that is designed to insure best-in-class hospitals and nursing homes.

Our engineering services help us identify these best-in-class clients and then work with them to continue to improve their risk profile. We believe that better protected health care clients deserve better insurance programs.

Coverage is provided on the proVision policy platform which has:

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01

Health care-specific coverage

Caring for patients is a health care client's number one focus. AFM's health care policy provides clients with easy access to the coverage they need—helping to keep the focus on patient care.

The proVision Health Care form offers health care-specific coverage that meets the unique needs of hospitals and nursing home clients.

  • Radioactive isotopes and various medical screening devices pose a potential contamination hazard should they be involved in a loss. The proVision Health Care form offers full policy limits for radioactive contamination resulting from a covered cause of loss.
  • Emergency vacating expense coverage provides funds for costs incurred while transporting patients to safer locations should civil or military authority mandate an evacuation of an area.
  • AFM provides policy limits for losses caused by computer viruses—a market-leading offering.

02

Comprehensive single blanket limit

A single blanket limit inclusive of real property, personal property, business interruption, and boiler and machinery provides clients with optimum flexibility during large losses.

Health care clients often have single locations with significant real property, personal property and business interruption exposures. AFM offers clients a single blanket policy limit inclusive of these three types of insurable interests. This provides hospitals and nursing homes with optimum flexibility during a large loss.

For example, rather than limiting business interruption to the values reported at a location, clients can use the entire policy limit to cover the costs of repairing damages and recovering business interruption losses.

The proVision Health Care form also includes embedded machinery and equipment breakdown coverage. This includes coverage for expensive medical equipment like MRI machines, linear accelerators and building mechanicals.

Sublimits: Traditional machinery and equipment breakdown policies limit coverage for spoilage, ammonia contamination and hazardous substances. The proVision policy removes these coverage limitations. In addition, expediting expense coverage, typically only found in M&E policies, is included in the all-risk policy, extending this coverage to losses beyond just those that are M&E-related.

Broad definition of covered property: M&E policies typically have to name the type of property insured, such as fired and unfired pressure vessels, electrical equipment, mechanical equipment and production equipment. By including M&E in the all-risk platform, it broadens coverage to all types of property unless otherwise excluded.

Broadened cause of loss wording: The insured causes of loss for an M&E policy are generally limited to losses caused by accidents directly to the machinery or equipment. By embedding M&E coverage into an all-risk form, clients receive broadened coverage for all sudden and accidental events of physical loss or damage unless otherwise excluded.

Joint loss agreements: When there are separate property and M&E policies and an M&E event causes damage to property outside of the scope of the M&E policy, there can be complications in settling the claim between the M&E carrier and the all-risk property carrier. These complications are removed when it is all insured under the same policy.

03

Flexible valuation wording

Turn a property loss into an opportunity to increase available health care services to the community.

A large property loss could provide the opportunity for a health care client to re-evaluate their business plan and make decisions that could have long-term positive impact to their earnings power and the services they deliver to the community.

For example, AFM offers valuation wording that allows clients to receive claims funds at repair or replacement cost even if the client chooses not to repair or replace the damaged property. These claims funds can then be used over a two-year period on capital expenditures at any named location as long as the expenditure was unplanned at the time of loss.

Read more to see how a nursing home capitalised on this flexible valuation wording.

A nursing home client experienced a flood at one of their lower-performing facilities. The damage would have cost US$4 million to repair—at a facility that was only 35 percent occupied, and unprofitable.

Rather than repair an under performing asset, the client decided to relocate the patients and demolish the building. Remaining repair funds were then used to purchase new beds at a higher-performing home.

Typical industry practice requires a client to repair or replace the damaged property or receive actual cash value for the damaged property. AFM provides the "unplanned capital expenditures" option, which allows clients to still receive repair or replacement valuation as long as they use the funds at another named location on any unplanned expenditure—in this case new beds.