Completing the Circle of Financial Protection
Against Third Party Claims
The Funding Required to Defend and Pay Claims Arising Out of
Injuries Sustained by Third Parties Requires a Careful Blending of
Several Different Forms of Liability Insurance Protection.
Each of the different forms is designed
to fill one or more voids in the protection afforded by other forms.
Therefore, a complete circle of protection can only be obtained by fitting
all of the various pieces together.
Medical Malpractice Insurance
Provides funding for the payment of defense and indemnity costs
incurred by the insured for claims of damages arising out of the
rendering of, or failure to render health care services, whether or not
the allegations are groundless or false.
Errors and Omissions Insurance
Provides funding for the payment of defense and indemnity costs
incurred by the insured for claims of damage incurred by third parties
arising out of allegations of the insured’s errors or omissions in
performance of specifically described duties, whether or not the
allegations are groundless or false. Managers of health care provider
organizations are vulnerable to claims arising out of failure to
properly screen provider credentials, conduct peer reviews, perform
utilization reviews, and monitor provider competence.
General Liability Insurance
Provides funding for the payment of defense and indemnity costs
incurred by the insured as the result of claims for damages brought by
third parties due to bodily injury and property damage sustained on the
insured’s premises or arising out of the insured’s operations whether or
not such claims are groundless or false.
Directors & Officers Liability Insurance
Provides funding for the payment of defense and indemnity costs
incurred by the insured and personally by the insured’s directors and
officers for claims brought by creditors, shareholders, employees,
competitors and others which arise out of allegations of breach of duty,
neglect, error, misstatement, and similar causes whether or not the
allegations are groundless or false.
Workers’ Compensation Insurance
Provides funding for the payment of claims arising out of work
related injuries sustained by insured’s employees and for which the
employees’ exclusive remedy is established by applicable workers’
compensation statutes. Standard workers’ compensation insurance policies
also provide funding for the payment of defense and indemnity cost
incurred by the insured as the result of claims for damages arising out
of employees’ work related injuries and for which workers’ compensation
insurance is not the exclusive remedy.
Employment Practices Liability Insurance
Provides funding for the payment of defense and indemnity costs
incurred by the insured as the result of claims for damages brought by
employees due to the insured’s violation of the laws and regulations
governing employment practices such as sexual harassment,
discrimination, and wrongful termination whether or not the allegations
are groundless or false.
Automobile Liability Insurance
Provides funding for the payment of defense and indemnity costs
incurred by the insured as the result of claims for damages brought by
third parties due to bodily injury and property damage arising out of
the insured’s use of owned and non-owned automobiles.
Fraud & Abuse/Billing
Errors and Omissions
Provides funding for billing Errors & Omissions for
health care entities and providers for the cost of governmental
investigations stemming from Medicare and Medicaid billing. Basic
coverage for cost of audits, investigations, legal defense, judgments,
settlements, civil fines and penalties.
This coverage was created as a result of the rise in
cases filed against health care providers during the past few years,
believed to be in response to the Health Insurance Portability Act of
1996 (HIPAA) which provided funding for agencies to audit billing
practices of those health care providers and entities billing Medicare
and Medicaid.
Cyber Liability
Offers coverage against lawsuits for libel, invasion of
privacy, infliction of emotional distress and copyright and trademark
infringement. It also offers coverage for errors and omissions in
content and errors and omissions in providing services for others.
NOTE: This is prepared for discussion purposes
only and is not intended to be a complete explanation of coverage or
terms of any given policy. Only the actual policy language can govern
the scope and limits of protection afforded to a particular claim.
For further information please contact me at:
rick@rickmortimer.com
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