Claim Scenarios
Claims happen. It’s just one of the realities of veterinary medicine. That’s why it’s our goal to educate AVMA members and provide them with the risk-management resources they need to prevent as many claims as possible. It’s also why we encourage them to get the coverage they need to protect their lives and livelihoods.
But sometimes a dose of reality is more compelling than a safety guide. So, take a few minutes to read about real-world claims your colleagues have faced.
Professional Liability
Helper's Head Crushed by Chute
Dr. A was using a hydraulic chute to process cows and calves in Client B’s pasture. As the animals were restrained in the chute, each one was tagged, vaccinated as needed, and treated with insecticide. Client B’s relative (Helper C) was present to assist in the operations. He was asked by Client B to spray insecticide down the backs of the animals during processing.
Dr. A was operating the head gate from the opposite side and could not see Helper C. When Dr. A released a cow, Helper C’s head became trapped between the squeeze mechanism and the outside frame of the chute. Dr. A immediately released the pressure, and Helper C was able to remove his head from the chute. Helper C was taken to an emergency facility and diagnosed with a fractured skull and other injuries.
After a review, the carrier determined that Dr. A was partially liable for the injury incident. Dr. A was operating the head gate and, as the treating veterinarian, was in charge of the processing. Therefore, it was their responsibility to ensure everyone involved was safe. It also was determined that Helper C shared responsibility to ensure that he was positioned in a safe place during the processing of the cattle.
A negotiated settlement was reached for $300,000, with contributions from Dr. A’s professional liability and general liability carriers as well as the insurance carrier for Client B, the owner of the property.
Professional Liability
Chute Injury Results in $1,200 Claim
Client D purchased a yearling bull for $2,000 for breeding. Dr. E planned to perform a semen evaluation using a hydraulic chute. However, the bull's leg became caught in the brisket bar for approximately 10 minutes before Dr. E noticed.
The bull suffered spinal injury and was partially paralyzed. Dr. E aborted the procedure and treated the bull for its injury. Client D culled the bull a few days later when it did not recover.
Client D requested the difference between the salvage price and purchase price. Dr. E submitted a claim to their professional liability carrier.
Upon reviewing the claim, the carrier determined that Dr. E’s restraint of the bull fell below the standard of care by not ensuring the bull’s safety while in the chute. The carrier settled the claim for $1,200.
Animal Bailee
Embryo Donor Cow Killed by Hay Ring
Dr. F was boarding an embryo donor cow at the practice location. The cow was eating from a hay ring that releases more hay as the feeding cavity empties. The cow had its head in the feeding cavity when a large amount of hay shifted and fell, trapping it and choking it to death.
The cow was valued at $20,000 but Dr. F's Animal Bailee plan only had a limit of $8,000. The carrier paid the $8,000, and Dr. F was forced into legal proceedings with the owner over covering the remainder of the damages.
Business Interruption
Frozen Pipe Results in Extensive Water Damage at Practice
Practice G was closed for a winter holiday. When employees returned, they found standing water in the lobby and several exam rooms. Closer inspection revealed that a pipe had frozen and burst, resulting in significant water damage to Practice G’s interior.
Restoration efforts were effective in reducing the severity of the leak, but both the building and its contents still sustained considerable damage. Practice G was forced to close for the duration of the repairs and in doing so, lost several weeks’ worth of income. Practice G had previously secured general property insurance and business interruption insurance.
As a result, the insurance carrier paid out a total of $250,000, including $75,000 for lost revenue and payroll expenses.
Employment Practices Liability
FMLA Extension Denied
Employee H took Family and Medical Leave Act (FMLA) leave three months prior to giving birth due to a pre-existing disability that required her to be on bed rest until delivery.
After exhausting her FMLA leave, Employee H requested a five-day extension because she was not yet able to return to work. Practice I’s owner denied her request and terminated her employment, explaining that Practice I had a policy of denying FMLA leave extensions and instead encouraged employees to re-apply for positions once they were able to return to work at full capacity. The employee alleged that she was being discriminated against based upon her pre-existing disability and pregnancy.
The matter was resolved during mediation and was settled for $110,000.
Data Breach
Online Shopping Leads to Hack
While using a practice computer to check his personal email, Dr. J opened a message from a familiar clothing brand. The email advertised a downloadable coupon to be used within 48 hours. When Dr. J clicked the coupon link, the practice computer was infected with a virus.
The hacker demanded a $5,000 ransom to release control of the device.
In total, Dr. J’s Data Breach policy paid $7,500 to help cover the cost of the ransom, the cost of notifying all affected clients, and legal services.