Healthcare organizations that deliver services through Telemedicine need a professional liability
policy and electronic data liability insurance policy.
Surprisingly, many of these organizations will say that they are not at risk …They assume that the job of simply connecting the physician (who often carries their own medical malpractice insurance) to the patient does not expose the entity. This clearly exposes the entity in the same way that any medical group clinic or hospital has exposure because it is in the chain of delivery. However, because physicians carry their own insurance, these telehealth organizations will often mistakenly think that they are not at risk of a suit.
Ostensible agency and vicarious liability brings a portion of every claim to these entities.
Vicarious Liability is a reality for many healthcare organizations
The professional liability policy would cover that vicarious exposure. The myriad formations and creations of care networks by contract or new corporate structures, such as joint ventures, affiliations and partnerships under the guise of accountable care organizations (ACOs), Health Networks, Virtual Health Clinics, clinically integratedorganizations (CIOs), and other nonownership arrangements creates potential legal liability on a theory of ostensible agency/Vicarious Liability.
Vicarious Liability to the entities for Credentialing
These arrangements may also fuel claims for negligent credentialing of the organization or individual providers. These telemedicine entity only professional liability policies start with a very low premium often lower than $5000 for limits of 1 million 3 million. The important aspect of these policies is that they must grow with your organization as you build your network:
….to accommodate and ‘onboard’ the physicians who will need telemedicine medical malpractice coverage.
Agency, Professional Liability for Telemed Organizations
The agency representing you to the medical malpractice industry must understand how to rate and monitor the growth of your organization. Often times when entering into new contracts with healthcare organizations you need to be ready to add physicians quickly. The Doctors Insurance Agency has been working in the telemedicine niche for 10 years. We are ready with short applications and sophisticated underwriters with competitive pricing models adding doctors to your roster so you can implement contracts quickly and grow the premium within your start up budget.
No Tail for Telemedicine Physicians or Mid Levels
Telemedicine healthcare organizations malpractice policies must have an element of occurrence liability built in to the structure. Just like with emergency medical and hospitals policies these malpractice policies must be flexible with a rolling tail element, or every time you change your physician or mid-level personnel will trigger an expensive tail premiums.