Darwin Creates Comprehensive Corporate Liability Coverage for Managed Care Organizations |
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Written by U.S. Insurance News
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Sunday, 16 March 2008 |
Those who provide managed care services can purchase comprehensive liability coverage through one product, thanks to Darwin Professional Underwriters, Inc.
Through its new corporate liability insurance policy, Darwin has included the following coverages, which the insurer says is critical to address managed care organizations' management and corporate liabilities:
- Professional services errors and omissions (E&O) liability
- Directors and officers (D&O) liability
- Employment practices liability (EPL)
- Fiduciary liability
- Media liability
- Network security and data privacy
"Our goal in developing this product was to significantly simplify the coverage procurement process and to offer a state-of-the-art product through the integration of multiple insurance coverages into one policy for the benefit of agents, brokers, and insureds," explained Cindy Oard, vice president, health care management liability underwriting. "While other markets have combined portions of coverages, this policy was designed to go well beyond any of those combinations. The policy has been constructed
specifically to cover a managed care organization's service provider-related exposures."
For example, Oard pointed out that the professional E&O coverage is significantly more inclusive than traditional managed care E&O coverage. "The policy is like nothing this market has seen before," she said. "We believe we have created an approach to this buying segment that cannot be ignored."
Darwin's new policy includes supplemental coverage for privacy breach notification and credit monitoring costs; no exclusions for regulatory claims, antitrust, bankruptcy, or electronic data processing; and coverage for loss of medical and non-medical personally identifiable information, including HIPAA fines, fees, and penalties.
The policy also offers duty-to-defend coverage on an excess and surplus lines basis, with standard terms that include punitive damages coverage (most favorable venue), third-party liability, final adjudication coverage, and a range of other distinctive features. As with all of Darwin's insurance products, this policy includes a value-added risk management program that educates policyholders in current and effective loss prevention planning.
Managed care service providers eligible for this coverage include, but are not limited to:
- Independent physician associations
- Physician hospital organizations
- Administrative service organizations
- Case and disease management providers
- Credentialing verification organizations
- Management service organizations
- Peer review service organizations
- Rental network entities
- Third-party administrators
- Utilization review organizations
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