Allied health professionals play a critical role in the overall landscape of healthcare and make up more than half of the current industry workforce. From medi spas and urgent care clinics to home health aides, adult day care, and mental health clinics, and more, allied health practitioners provide treatment and services to a large segment of the population. However the insurance needs of these specialized health professionals are sometimes not adequately addressed by more general medical insurance policies. That’s why it’s so important to conduct regular coverage reviews with your allied health clients to identify coverage gaps – like the five described below – and customize an insurance solution that meets the needs of the individual practitioner or business operation.
Mind the (Coverage) Gap For These and Other Liability Exposures
1. Professional Liability Coverage Exclusions
Allied health professionals work closely with the public in personal, sometimes emotionally charged, situations. In the case of some operations, such as an outpatient alcohol and drug rehabilitation center, patients may include vulnerable populations. This close interaction can lead to a host of potential liability claims, so it’s critical to make certain that coverage exclusions don’t leave your client exposed.
When it comes to professional liability coverage, one common exclusion is claims related to abuse and molestation. To prevent a coverage gap, it’s essential to secure sexual abuse liability at appropriate limits for the business entity as well as individual allied health professionals.
2. Hired and Non-Owned Auto Coverage
Picture this: a home health aide finishes their morning appointments and jumps into their personal vehicle to visit the next patient. It’s a common scenario for specialized allied health professionals, but – without appropriate coverage – it could lead to a costly insurance claim or lawsuit. In the event of an accident resulting in property damage or bodily injury, your allied health client or the business entity itself may be held liable.
Most personal auto insurance policies exclude coverage for incidents that occur during work-related travel. The solution is to make sure the allied health insurance policy includes hired and non-owned auto (HNOA) coverage. This policy addition provides coverage for accidents that happen when personally owned or rented vehicles are used for the purpose of work-related travel.
3. Administrative Proceedings and Subpoena Compliance
As part of a regulated industry, allied health operations and professionals are subject to requests for compliance with subpoenas as well as administrative proceedings such as audits and investigations. However the financial cost of fulfilling these obligations may be excluded under the professional liability coverage.
Ensuring that your client’s allied health insurance policy includes coverage for administrative proceedings and subpoena compliance is crucial to address this exposure. This coverage pays for legal expenses and other related costs incurred by the insured individual or business.
4. Legal Defense Fees
Legal defense fees can be one of the biggest threats to the financial stability of any allied healthcare practice. In complex malpractice cases, legal costs can start eating into the very coverage that was meant to protect against settlements or judgments. When defense costs are bundled within policy limits, every dollar spent on legal expenses, such as for legal counsel or expert witnesses, is a dollar no longer available to pay for a potential settlement.
Defense outside limits coverage ensures that the legal defense costs are paid separately from (outside of) the total policy limit, leaving the full policy limit available to cover settlements or judgments.
5. Employee Theft
When we think of risks facing healthcare providers, external threats like lawsuits or cyberattacks usually come to mind. But what about the threat from within? Employee theft is a risk for every business, and allied health operations are no exception. Whether it’s misappropriated funds, stolen patient information, or even disappearing medical supplies, employee theft can result in devastating financial loss for the business entity.
No matter the size of the team or their dedication to the clinic, spa, or diagnostic center, employee theft is an unfortunate reality for allied health businesses. Adding employee theft coverage helps protect against the financial damage caused by dishonest employees, ensuring that one individual’s actions don’t undermine the entire operation.
Your Ally for Allied Health: MiniCo
MiniCo’s exclusive Allied Health Insurance program offers the customizable liability coverages your clients need. Our dedicated program underwriters have the highest level of class-specific expertise and understand the risks facing both for-profit and nonprofit allied health business entities and professionals. Get program details and a full list of eligible classes at MiniCo.com. Questions? Contact our program underwriters for information or to get a quote.
