Insurance carrier drops Hawaii, Alaska

CHICAGO—Practitioners living in Hawaii and Alaska have lost workers' compensation and property insurance provided by the American Veterinary Medical Association's (AVMA) Professional Liability Insurance Trust (PLIT).

At presstime, officials with the state associations were unaware of the coverage loss and could not estimate the number of veterinarians effected, but Kasey Schaffer, a client services manager with PLIT's new brokerage firm HUB International, confirms the coverage closings.

PLIT changed underwriters, and HUB International does not provide property or workers' compensation coverage to areas outside the continental United States. The policy is based on a business decision, Schaffer says.

"I think a lot of insurance carriers feel that those states pose a more extensive risk because of cost of construction in Hawaii and Alaska is prone to natural disaster," Schaffer says. "The PLIT is continuing to search for markets that offer coverage in those states."

Practitioner reacts

Dr. Darrell Allison, a practitioner in Honolulu, confirms Hawaii is a "bad place for workers' compensation."

"Hawaii is highly democratic, and the labor market has taken over," says Allison, who has endured numerous claims against his practice. "I don't think there's ever been a workers' compensation claim here that's been turned down. Workers' compensation coverage around here costs a fortune, and you're going to lose anyway.

"Still, I think the PLIT has welshed out on this. I think they should've found a way to cover us."