Physicians Insurance is always tracking and analyzing the risks of the healthcare industry so we can bring to market new, timely ways to protect, defend, and support our Members. This industry focus recently drove the development of our new flexible, stand-alone Management Liability Insurance, which enables our Members to address the substantial risks arising from business decisions and practices with three critical coverage types: Directors & Officers (D&O) Liability, Employment Practices Liability, and Fiduciary Liability Insurance.
Why Now?
“A convergence of factors has heightened the management liability exposures of physicians, hospitals, and clinics,” said Daniel Antrosiglio, Director of Management Liability at Physicians Insurance. “Mergers and acquisitions, now ubiquitous in the industry, are a common trigger of D&O liability claims. Physician burnout and labor issues, along with increases in loss payouts and loss costs all increase management liability exposure. Intense financial pressures can lead to layoffs that spark employment-related claims. And the list goes on.”
Personal and Professional Stakes
Management liability claims threaten not only healthcare organizations themselves. Individuals in the business of healthcare—directors, officers, and executives—can find their personal assets on the line in these claims. These claims, which stem from allegations ranging from mismanagement and discrimination to breaches of fiduciary duty, can also seriously damage the reputations of the entities and individuals involved.
Meanwhile, many management liability carriers are backing away from providing management liability coverage for healthcare organizations. Physicians Insurance, on the other hand, is stepping up with the strong, expansive protection our Members need now.
A Robust Solution
Our modular, healthcare-focused management liability policy gives our Members the peace of mind and protection they need for their organizations and the individuals who serve them. This three-pronged protection can include:
- D&O Liability Coverage, which protects the entity and individual directors and officers in claims arising from the performance of fiduciary duties. Coverage addresses common claims triggers head-on, including HIPAA, EMTALA, IRS, and excess benefits transactions tax issues, antitrust violations, regulatory wrongful acts, and derivative demands. Crisis event-response costs coverage funds resources to help protect Members’ reputations in claims, while Side A coverage is provided expressly for individuals.
- Employment Practices Liability Coverage, which protects Members in a wide range of claims arising from employee allegations. These can include wrongful termination, discrimination, harassment, retaliation, family medical leave issues, and more. Coverage is paired with HR Hero, an online portal of employment-practices risk-management resources.
- Fiduciary Liability Coverage, which protects plan sponsors and those considered “fiduciaries” in claims alleging mismanagement of employee benefit programs. These claims can run the gamut from breaches of fiduciary duty under ERISA to claims related to HIPAA, health exchanges, and more.
The policy’s modular structure makes customization easy. “We are pleased to provide this robust solution that will help bring certainty to those managing healthcare operations, enabling them to run these vital organizations with confidence,” Antrosiglio noted.
To learn more, view our Management Liability Overview, visit phyins.com/management liability, or contact Daniel Antrosiglio at dantrosiglio@phyins.com.