Medical Facilities and Professional Liability Insurance
The United States healthcare delivery system is changing. A paradigm shift from the old fee-for-service model to a continuum of care ideal offers many new entrepreneurial avenues for the delivery of specialized medicine. The result has been the advent of highly specific, standalone medical facilitiesâ€”such as same day surgery centers, behavioral health centers, cancer treatment centers, long-term care facilities and outpatient specialty care clinicsâ€”that possess broad insurance needs.
While each medical facility will have distinct liability exposures based on the unique attributes of their specialty, following is a list of insurance products that almost every standalone complex will need to protect its employees and assets.
- Medical Professional Liability Insurance, also known as malpractice insurance, protects you and/or your employees from claims of negligent care. When searching for a malpractice insurance policy, one wants to consider terms such as whether it carries a consent-to-settle clause, whether defense costs will be subtracted from the amount available for indemnity payments and under what conditions an extended reporting endorsement (tail coverage) will be made available to you. Financial strength as well as the ability to meet current and future policyholder obligations should also weigh heavily when determining which medical malpractice insurer to do business with.
- Employment Practices Liability Insurance (EPLI) protects a medical facility against employment-related lawsuits that allege discrimination, wrongful termination, a breach of contract, sexual harassment and invasion of privacy, among other actions. There are healthcare-specific EPLI products that meet the unique needs of a medical facility, offer coverage for legal defense costs as well as judgments and settlements arising from employment-related claims.
- Errors and Omissions (E&O) Insurance protects a medical facility against lawsuits associated with the actions of its employed healthcare professionals. These exposures include failure to maintain the confidentiality of patient information and other HIPAA violations, negligence of employed healthcare providers, liability stemming from provider selection as well as vicarious liability when named in a lawsuit based on ostensible agency.
- Directors and Officers (D&O) Insurance provides coverage for a medical facilityâ€™s governing board. Whereas E&O coverage protects the facility against errors, omissions and breach of duties, D&O Insurance protects the individuals governing the facility from the same actions.
- Medical Practice Office Insurance protects your medical facility against business and premises liability (Business Owners), medical expenses and disability benefits for your employees with coverage protecting your practiceâ€™s liability for work related injuries (Workers Comp) and additional business liability and asset protection (Commercial Umbrella).
Our team of veteran insurance agents specializes in coordinating the different policies a successful medical facility needs to protect its assets. We have access to every major insurer and leverage that access to ensure you get the best terms at the best price. Let our team show you how much you can save when insurance companies compete for your business. Complete the Custom Quote form and we’ll get you quotes for all the different coverages you need.
This write-up for Professional Liability Insurance for Medical Facilities Michael Matray, the Editor of the Medical Liability Monitor