The importance of adequate insurance

Eyecare businesses face a unique mix of clinical, operational and digital risks. These include:

• Professional liability: even the most experienced practitioners can face claims of negligence or misdiagnosis. Medical malpractice insurance helps cover legal costs and potential damages
• Equipment and property damage: damage to diagnostic tools and optical equipment from fire, theft, or accidents can disrupt operations and lead to significant costs
• Cybersecurity threats: with patient records increasingly stored digitally, the risk of data breaches is growing. The Health Information Privacy Code sets strict standards for data protection
• Business interruption: natural disasters, infrastructure failures or even a burst pipe can force a clinic to close temporarily affecting income and patient care.

New Zealand’s small and medium-sized businesses – especially in healthcare – often operate with limited financial buffers. Insurance provides a financial safety net that allows them to recover from unexpected events without compromising their long-term viability. It also supports compliance. Health professionals are subject to various legal and ethical obligations, so having the right insurance helps meet those responsibilities while protecting patients and staff.

While every practice is different, there are several core policies that most eyecare businesses should consider:

• Medical malpractice insurance covers claims related to errors, omissions or negligence in the delivery of professional services specifically in the medical industry
• Public liability insurance protects against claims of injury or property damage caused to third parties on your premises
• Business interruption insurance helps cover lost income and ongoing expenses if your practice is forced to close or relocate due to a material loss
• Cyber insurance covers costs associated with data breaches, ransomware attacks and system recovery
• Contents and equipment insurance ensures that essential tools and technology can be repaired or replaced quickly in the event of damage or theft.

Tailoring coverage to your practice

A solo optometrist in a suburban clinic will have different insurance requirements from those of a multi-location optical retailer or a mobile vision service. Factors like the size of your team, the value of your equipment and the nature of your services all influence the type and level of cover you need. It’s worth reviewing your policies regularly, especially if your business has grown, added new services or invested in new technology.

For example, a clinic affected by a flood or fire may be able to relocate and reopen quickly thanks to business interruption cover. Another may recover from a cyberattack without losing patient trust because they had appropriate insurance in place. On the other hand, practices without adequate cover can face long closures, legal disputes or reputational damage that’s hard to repair.

In eyecare, your focus is on helping people see clearly, but it’s just as important to see the risks that could affect your business and prepare for them. Insurance isn’t just about protecting assets it’s about ensuring continuity, maintaining trust and supporting the long-term health of your practice.

Now is a good time to take stock of your cover. Understanding and mitigating your risks are the most practical steps you can take to safeguard your business and your patients.

Finn Judson (FSP 668471) is a senior commercial broker at Clarity Insurance Brokers clarityinsurancebrokers.co.nz. Contact Finn at [email protected]

Disclosure: This article is provided or information purposes only, is subject to change and doesn’t constitute financial or professional advice, which you should seek before relying on it. Clarity Insurance Brokers Ltd cannot warrant the accuracy, completeness, or suitability of this article for your intended use. To the extent the law allows, Clarity Insurance Brokers Ltd doesn’t accept any responsibility or liability for any direct or indirect loss or damage arising from any act or omissions by any person relying on this material. See our financial advice disclosure on our website: https://clarityinsurancebrokers.co.nz/disclosure-information/.