Expanding Our Executive “ViewPoint”
When thinking about insurance solutions for health care companies, many focus on, and, perhaps stop at, medical malpractice insurance. However, running a health care company comes with many of the same risks that business owners face in other industries. Health care companies face lawsuits from creditors, investors, competitors, the state and federal governments and employees.
Health care companies are also subject to exposures unique to this market segment, including the Health Insurance Portability and Accountability Act (HIPAA) and the False Claims Act (FCA). The FCA imposes liability on people or organizations who file false claims for funds from government programs.
According to the Department of Justice, $2.5 billion dollars were recovered from the health care industry under the FCA in 2016 alone, the third highest annual recovery in FCA history.
Most of these lawsuits and claims come from whistleblowers. Whistleblowers are incentivized to report these claims, as they are entitled to receive up to 30 percent of the recovered funds. These whistleblowers are often disgruntled or former employees. Under the FCA, organizations can be held liable for up to three times the amount for which the claim was originally filed.
These claims are expected to increase in costs throughout 2017 and into the foreseeable future. It is important that your clients have the proper insurance coverage in place to defend these regulatory claims.
Devon Park Specialty is expanding classes of businesses in most states to include ambulatory health care services, medical device manufacturers and biotechnology products manufacturers under our Executive ViewPoint (EVP) product.
EVP offers coverage for directors and officers, employment practices and fiduciary liability. Limits up to $5,000,000 are available for each coverage part. Our EVP policy also has the following advantages:
- Lifetime Occurrence Reporting Provision
- Additional Side A limit of $1,000,000 automatically included
- No hammer clause
- Sublimit of $100,000 HIPAA fines and penalties
- Defense costs for regulatory claims available
- Sublimit of $100,000 (defense and indemnity) for wage and hour claims, available in most states
- Defense outside the limits up to $1,000,000
We are ready to quote your submissions today. Please contact your Devon Park underwriter for more information or a quote.
Contact Kenny Bang,
Assistant Vice President, Underwriter | 844-438-6775 Ext. 2923
Written by Samantha Hildebrand
September 7, 2017