Property & Facility Coverage
for Healthcare Enterprises

Medical facility construction is categorically more expensive to replace than standard commercial real estate. Radiation-shielded operating suites, sterile environment construction, medical gas plumbing, redundant power infrastructure, and specialized HVAC systems with high-efficiency filtration cannot be rebuilt at generic commercial construction rates.

Our building coverage for healthcare facilities is underwritten on an agreed-value or replacement cost basis that reflects actual healthcare construction rates, not commercial averages. This eliminates the coinsurance gap risk that frequently leaves healthcare property owners underinsured following a major loss.

Coverage applies to all permanently attached structures: main buildings, covered walkways, parking structures serving the facility, utility infrastructure, and ancillary buildings within the facility campus.

Healthcare facility contents range from standard office furniture to surgical robots exceeding $2 million per unit. Standard commercial contents policies are not designed for this value density or for the regulatory complexity of medical equipment documentation.

Our contents and equipment programs are structured with blanket limits and scheduled high-value items to ensure that both routine contents and major equipment are adequately covered. All equipment is insured at replacement value, not depreciated book value, ensuring operational restoration rather than partial recovery.

Equipment in transit, on loan to other facilities, or temporarily off-premises for repair can be covered under the same program through floater endorsements. Research equipment in clinical research environments is included by default where applicable.

Premises liability in a healthcare context extends far beyond slip-and-fall. Patient falls, exposure to infectious agents, medication administration on premises, and sharps disposal incidents create liability exposures that are unique to medical facilities and must be specifically underwritten.

Biological contamination coverage includes the cost of the decontamination process itself, CDC and health authority consultation fees, temporary facility relocation or closure costs, and the extended business interruption that follows a major contamination event. Decontamination of a fully contaminated sterile surgery suite can require six to eighteen weeks of closure – our policies are written to cover this reality.

Environmental liability coverage addresses pollution events, chemical spills from laboratory or pharmacy operations, and the regulatory compliance costs associated with environmental incidents at medical facilities.

Business income replacement for healthcare facilities requires careful valuation. Unlike commercial operations where revenue equals cash flow, healthcare revenue includes insurance reimbursements, capitation payments, and government reimbursement programs that continue partially during closure – and must be factored into coverage calculations appropriately.

Our business income programs are written on a gross revenue basis with adjustments for healthcare-specific revenue patterns. Extended period of indemnity provisions extend coverage beyond the physical restoration period to account for the time required to rebuild patient census, renegotiate managed care contracts, and restore accreditation status following a major loss event.

Extra expense coverage pays for the extraordinary costs of continuing operations during partial closures – renting temporary space, outsourcing services to third-party providers, expediting equipment replacement, and managing staff during operational transitions.