Telemedicine Organizations Need Directors and Officers Insurance

July 19, 2021

Directors and Officers insurance is also known as business and management insurance, and it's a vital part of any Telemedicine Organization.


As new interstate Telemedicine organizations take on investors with ownership—they need to consider that they now have stakeholders in the organization

who could have a cause of action against management if there is a financial loss.


Owners, investors, executives and others with a vested interest in the success of the organization might allege asset waste. Management decisions that result in a loss of revenue can devastate a business, and even cause a business to shut its doors.

The policies that protect the organization and the individuals from these claims of financial negligence are directors and officers insurance and cyber liability.


The Doctors Insurance Agency has worked with specialty financial Medical Professional Liability Insurance carriers, who underwrite these products, for over 20 years.

We specialize in guiding you to determine which policies you need to implement.


In addition to a financial Medical Professional Liability policy, a Standalone Cyber Liability policy can provide the increased limits that are necessary to satisfy contractual insurance policy stipulations.

Most Telemedicine Professional Liability Insurance policies carry limits of one to three million. We're increasingly seeing requests for the higher limits of 5,000,000 for network security issues and data breaches.

These standalone cyber policies can be written to sit as excess over the combined professional technical and cyber policies, and then upon cancellation they serve as tail, giving you a longer extended reporting period and importantly provide the higher limits available through these standalone products.


Coverage for first party claims is typically bundled as “Crime Coverage” on these standalone cyber policies.

This class of risk includes phishing and ransomware attacks, and coverage provides limits to address the cost of credit monitoring, forensics, social engineering, etc.

Most of these would likely be transacted, and therefore defended, in real time (rather than years down the road) under a policy currently in force.


The other claims are third party in nature. These come from individuals, normally patients and clients of the health care organization, who have a cause of action because of a breach of their personal information.

The loss of data integrity can open an organization to thousands of claims of personal damages due to the release of Social Security numbers and sensitive health information.

These data breach claims naturally can lead to financial loss and give rise to directors and officers claims.

For this reason, The Doctors Insurance Agency recommends a package of professional technical high limits cyber that includes first party data breach coverage, along with the combined security of a directors and officers policy.