Posted on: March 15, 2018 by Huntersure LLC.
One of the main components of any professional liability insurance plan offered to healthcare workers is employer-offered insurance. While having this plan in order is great for employees, it’s not necessarily a catch-all for any possible threat. Plus, news coming out of Washington is pointing to more shake-ups in the healthcare insurance industry that put malpractice cases in limbo. Having a running knowledge of what is and isn’t covered by a specific employer-provided plan, like Malpractice Insurance for Nurses, is imperative for all employees.
At today’s rates, it’s important that a policy has a limit of insurance that can cover the costs of defending a case. From hiring an attorney to attending meetings and hearings, all of this can add up to a costly lump sum. And if someone is found guilty, they are required to pay in compensatory damages.
Employer-sponsored policies are commonly shared limit policies. What this means is that all employees are covered as additional insured under an umbrella liability policy in the name of the employer. This, however, comes with a shared limit. Just one or two claims within a policy can in fact max out the allowed claims. What about additional claims? Well, there will be little funds left for those.
Some types of work in the healthcare field actually result in being excluded under an employer’s policy. It’s important to know the full scope of services provided because a claim can come up in any possible way. And if an individual offers any services outside of their employment, say volunteering or for pay, this may not be covered by their employer-provided coverage if a claim arises. A personal insurance policy will ensure that the employee is covered, whether for multiple employers or even as a volunteer.
While no one wants to think about the possibility of needing representation in the case of a claim, it is an important part of your insurance policy information. Typically it’s not common that your employer’s insurance policy provides for attorney representation. Depending on who you’re liability policy provider is this may be something to cover separately.
If for some reason an employee ends up going to court or hearings because of a claim they run the risk of not being reimbursed for lost wages during this time period. Reimbursement for lost wages is another added benefit not offered by the typical employer-provided policy. Employees will definitely want to look into a third party insurance company that provides this coverage. From meetings and hearings to depositions, there will possibly be plenty of time spent away from work.
Most insurance plans cover events that happened while the policy is in effect. Sometimes allegations are made months, or even years, after an incident happens. Find out if tail coverage is offered in an insurance policy if a job ends for any reason. Tail coverage is a valuable addition because it adds time in which the incident that occurred can be reported, and will be covered. If a policy doesn’t have tail coverage, claims filed after this policy expires are not covered.
The worst thing that could happen is assuming everything is taken care of. Taking action to understand what is covered in your employer provided policy can make a difference in the event of a claim.
Huntersure LLC is a full-service Managing General Agency that has provided insurance program administration for professional liability products to our partners across the United States since 2007. We specialize in providing insurance solutions for businesses of all sizes. Our program features can cover small firms (grossing $2.5 million annually) to large corporations (grossing $25 million annually or more). We make doing business with us easy with our breadth and depth of knowledge of E&O insurance, our proprietary underwriting system that allows for responsive quoting, binding and policy issuance and tailored products to meet the needs of your insureds. Give us a call at (646) 751-3030 to learn more.