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
Errors & Omissions
Cyber Liability
General Liability
Directors & Officers
Workers' Compensation
Employment Practices Liability
Automobile Liability
Fraud & Abuse
   

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