Wellness plan versus pet insurance

Definition

The line between prepaying care you scheduled and insuring against care nobody scheduled.

Why It Matters

Nebraska's Pet Insurance Act writes the test out: a plan that undertakes to indemnify, pays a set amount on a contingency, or covers a fortuitous event is transacting insurance and needs a license. The shelter for an ordinary clinic plan is narrow. It covers a contract directly between the practice and the owner for services the practice performs itself. Two things sellers add will break it, because plans sell better with them: a benefit that pays out on an accident or an illness, and a third party administering or underwriting. Read the plan contract and the benefit schedule before pricing enrolled clients as recurring revenue, because unlicensed insurance is what a buyer would inherit with the client list.