Does my insurance really cover my inventory of vaccines and other medications?

Information from insurance carriers regarding medical stretch coverage, vaccine coverage, and vaccine temperature addendum’s.


Most clinics have or should have additional insurance coverage for their vaccines. But the coverage is very specific and typically covers:

  • power loss outside of the clinics control
  • equipment failure beyond the clinics control (as documented by parts replacement)
  • heating or cooling plant failure
  • contamination of the vaccine by the refrigerant

The additional insurance amendments do not cover:

  • Refrigerator / Freezer door left ajar
  • Lack of monitoring the refrigerator temperatures
  • Any employee related mistake
  • Extended defrost cycles
  • Defrost heater / thermostat issues which lead to rapid temperature increases
  • Blown fuse
  • Tripped circuit breaker
  • Electrical Fluctuations
  • UPS failure
  • Unplugged refrigerator

In short, these amendments do not cover the most common causes of lost vaccine and medications.

 

 

Typical Standard Property / Casualty Language


Unless specifically provided under a separate endorsement and with a specific Limit of Insurance indicated in the Declarations, we will not pay for direct physical loss of or physical damage to “perishable stock” caused by or resulting from:

  • A change in temperature or humidity resulting from:
    • Mechanical breakdown or failure of:
      • Stationary heating plants; or
      • Refrigerating, cooling, or humidity control apparatus or equipment;
    • Artificially generated electric current, including electric arcing, that disturbs electrical devices, appliances or wires; or
    • Complete or partial failure of electric power on your “scheduled premises”.
  • Contamination by refrigerant.

 

 

Typical Language in a Vaccine Insurance Rider or Addendum


This coverage applies only when it is indicated in the Declarations. The provisions of this policy apply to the coverage stated in this endorsement, except as indicated below:

We will pay for direct physical loss of or physical damage to “perishable stock” at the “scheduled premises” caused by or resulting from:

  • A change in temperature or humidity resulting from:
    • Mechanical breakdown or failure of:
      • Stationary heating plans; or
      • Refrigeration, cooling or humidity control apparatus or equipment But only while such plants, equipment or apparatus are at the “scheduled premises”
    • Complete or partial failure of electric power, either on or away from your “scheduled premises”. Such failure of power must be due to conditions beyond your control
  • Contamination by a refrigerant

 

 

Exclusions

The following exclusions are added:
We will not pay for direct physical loss or physical damage caused by or resulting from:

  • The disconnecting of any of the following systems from the source of power:
    • Refrigerating;
    • Cooling; or
    • Humidity control
  • The loss of electrical power caused by the shutting off of any switch or other device used to control the flow of electric power or current
  • The inability of an electrical utility company, your stationary heating plant or any other power source to provide sufficient heat or power due to:
    • Lack of fuel;
    • Lack of capacity to make enough heat or power; or
    • Order of the government
  • Breaking of any glass that is a permanent part of refrigerating, cooling or humidity control unit

Additional Definitions

For the purpose of this insurance:

  • “Mechanical breakdown” means:
    • Breaking or separation of any mechanical part(s) other than gas pipes or lines; or
    • Burning out of any electrical motor servicing such unit; and requiring replacement of the damaged parts to become functional

But “mechanical breakdown” does not mean faulty operation or failure of equipment which results in temperature change but does not require replacement of broken parts.
We will not pay for direct physical loss or physical damage to “perishable stock” caused by such faulty operation or failure of equipment.

  • “Perishable stock” means personal property:
    • Maintained under controlled conditions for its preservation; and
    • Susceptible to direct physical loss or physical damage if the controlled conditions change

Interested in learning more?

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