More commonly known as Errors and Omissions (E&O), this coverage helps protect professional advice/service providing organizations and individuals for the costs of litigation and financial damage for claims arising out their alleged failure to perform, error or omission or other wrongful act. This type of claim is not covered under a standard General Liability policy and needs to be insured separately.
Errors and Omissions
This is a key coverage for healthcare providers. As the healthcare landscape changes malpractice coverage from strongly rated insurers will continue to be a necessity. The cost and availability of coverage varies greatly by state and specialty. Pinnacle Brokers has people that are dedicated to this important protection. We specialize in putting together programs for multi-physician groups and have implemented a number of discounted group buying programs for our clients.
Directors and Officers Liability
This policy covers the personal assets of the directors and officers of the organization as well as the liabilities of the organization itself for alleged wrongful acts committed in the day-to-day operations of the organization. For private organizations, this coverage is often expanded to include coverage for Employment Practices Liability – alleged wrongful termination, sexual harassment and other alleged violations of employment practices statutes.
Compliance liability may pose a greater financial risk to the organization than Malpractice. These policies cover the organization for the costs associated with allegations of billing fraud, overpayment, and violation of the Medicare Sunshine Act, Stark Regulations (kickback laws or anti-trust violations), HIPAA and HiTech Act, etc. With the increased frequency of Medicare audits and other regulatory requirements of the Affordable Care Act, litigation involving these issues is expected to grow. The damages that can arise from a failed audit are considerable and can affect the organization’s ability to function.