Insurance Checklist for Everyone

All flexvets and employers must have insurance coverage in their own names. Read the following sections to determine your specific needs.

Who Pays?

Relief veterinarians pay for their own coverage as part of the expense of running their own businesses. Relief veterinarians should verify in writing that they have the necessary coverage.
With part-time veterinarians, whether or not the employer “pays” for benefits, the employer should pay for benefits. That is, it is to everyone’s advantage that pre-tax dollars are used to pay these expenses. If the employer does not want to pay extra for benefits, then a lower salary can be negotiated in lieu of that. Remember that any expenses paid out of the PT’s own pocket are only deductible to the extent that they exceed a certain percent of their adjusted gross income. Since the expenses are deductible before taxes for the employer, paying them usually doesn’t cause any disadvantage. However, in some cases it is advantageous for the part timer to pay their own health insurance premiums, if they qualify for a tax break under the Health Care Act which would provide a greater benefit. Employers should check with their insurance advisors about what requirements must be met for all their employees, and which approach offers the greatest benefit to all.
 

Worker’s Compensation and Unemployment Insurance

Laws vary by state. In some states, both relief and part-time veterinarians must be covered by both worker’s comp and unemployment; in others, only part-time employees must be covered; in others, only businesses with 3 or more employees must carry worker’s comp coverage for them. See State taxes and Case studies for more details.
It is crucial that you are quite sure of the relief veterinarian’s independent contractor status and health insurance coverage. The problem arises when an injury occurs. If someone calls herself a “relief” veterinarian but actually is working part-time and should have had worker’s compensation coverage, then health insurance policies may exclude on-the job-injuries and coverage for injuries that should be covered by worker’s comp. And without worker’s compensation, the employer is not protected from being sued for damages by an injured worker. (Note: They won’t do this out of spite, but to get the medical bills paid.) Particularly if you are covered under a spouse’s health insurance policy, check for exclusions for work-related injuries. If you aren’t covered by state workers’ comp and your health insurance has this exclusion, you are not covered!
 

Health Insurance

Health insurance is essential for everyone. Medical bills are the number one reason for bankruptcy in the US. Don’t skimp here! See the Health Insurance Reform web site for information about coverage. Specific information for individuals and employers are listed.
Taxpayers with certain household incomes may be eligible for premium tax credits for coverage purchased through Health Insurance Exchanges. These premium tax credits are paid on an advance basis to the health insurance provider, which will reduce the monthly premiums owed by families to purchase coverage.

Relievers

Relief veterinarians must carry health insurance, and this is especially crucial if they are not covered by worker’s compensation. If your insurance is very costly, at least get a “catastrophic” policy with a high deductible. Since you are self-employed, you may take a tax deduction for your insurance costs. View the online information about health insurance tax breaks for the self-employed.

Part-timers

Educate yourself about what coverage you are eligible for under worker’s compensation, and what additional coverage you need. Negotiate with your employer to have your health insurance paid out in pre-tax dollars, unless you qualify for a tax break under the Health Care Act that would provide a greater benefit.

Employers

Review the online information about health care benefits. Be certain that your relief veterinarians carry their own health insurance that covers work-related injuries. This is especially crucial if you live in a state that does not require you to carry worker’s compensation for independent contractors.
 

Liability Insurance

Both the employer and the flexvet are liable and responsible for anything that occurs while they are working. That means that if one veterinarian started to treat an animal that another continues to care for, or vice versa, (even though you may disagree with the way it was done), then you are just as liable as she or he is if the client sues.
What does that mean? Look at all the types of insurance, including license protection, to be sure you have adequate coverage. Get adequate coverage in your own name.
Don’t work in practices (don’t hire people) with a practice philosophy that is extremely different than yours. Ensure you have congruent standards, culture, and values. (See Consistent care, Case studies and Liability checklist for more about that). Communicate. Keep current written records. Medical record-keeping must be outstanding!
 

Auto Insurance

Employers

If any house calls or farm calls are done, and/or if a flexvet is using your vehicle, be sure that either your insurance or theirs will cover such business use as well as any supplies or equipment carried in the vehicle. See Using your vehicle for work.

Relief veterinarians

You will be driving more than usual, so be sure you have adequate auto insurance coverage. Theft or damage of any equipment you carry with you is usually not covered under your auto policy. Check your homeowners’ policy and business coverage to find out if that will cover those items.
If you use your vehicle during a relief job as part of the day’s work, then either your client’s insurance policy must cover you, or you must increase your own coverage to include that business use of the vehicle (additional coverage beyond the fact that you commute to your jobs). Consult your insurance agent.
 

Home or Rental Insurance

Relief veterinarians

If you own a computer or other valuable veterinary equipment or supplies, be sure that your renter’s or homeowner’s insurance adequately covers you for any loss. You may need to add a “home office rider” or similar endorsement to your current policy, or you may need to purchase separate business insurance (consult an independent insurance agent who handles many brands). If you regularly travel with valuable items in your car, find out if your homeowner’s insurance will cover those items, since your auto insurance may not do so.
 

Disability Insurance

Disability insurance is essential for everyone. The AVMA and other groups offer reasonable disability insurance, and your job is dangerous enough that this is a necessity. All it takes is one dog bite on your hand to put you out of work for weeks. Statistics show that disability is far more likely to occur than dying, so put this insurance high on your priority list. (If you have life insurance but not disability insurance, your highest risk is not covered.)
Be sure you can survive financially if you become injured. Get “own occupation” disability coverage. Also, put away enough savings to cover your living expenses between the time an injury occurs and the time your disability payments begin.
Maternity leave may be covered by special “disability” insurance. Plan ahead!

All flexvets

The AVMA disability insurance program requires that you regularly and actively work full time. (At least 20 hours per week.)

Relief veterinarians

Relief veterinarians may have greater chances of becoming injured than do other veterinarians, because they are working with unfamiliar equipment, with people they don’t know, and in unfamiliar surroundings. In most cases, independent contractors are not covered by worker’s compensation and cannot collect unemployment benefits. Get disability insurance!
 

Life Insurance

Life insurance is essential only if you have dependents, are a business owner, or if you have significant debt. Life insurance is not an investment tool. If you want to invest, do so another way. The purpose of life insurance is to pay costs that you would normally pay were you to be alive, and to cover the costs of your death. That might include your children’s living expenses and education, your spouse’s ability to stay in your home (to afford the payments), and your estate’s ability to pay off debt and settle your estate. See insurance information online here.