Cyber Liability Insurance Coverage

Posted by: admin on January 16, 2012

Are your computer records and patient information protected?  A recent survey by research group Advisen found that despite increasing instances of cyber attacks, only about a third of companies that need cyber liability insurance coverage are protected.  Most companies need cyber insurance but don’t realize they don’t have it until after a lawsuit is filed and it’s too late.  It is estimated that more companies will purchase cyber liability policies in the near future due to new SEC requirements that publicly traded companies disclose a “description of relevant insurance coverage” to their shareholders.

Cyber liability protection is just as crucial for independent medical practices.  If you maintain computerized patient information then you have the responsibility to protect those records.  Any unauthorized release of information or outside cyber attack could violate patient privacy laws and expose you and/or your medical practice to a lawsuit.  Diederich Healthcare is cognizant of your cyber liability and can advise and direct you to the proper coverage.

It is becoming more and more common for Medical Malpractice Insurance Carriers to include some form of Cyber Liability coverage in their basic policy form; however, coverage can vary from company to company.  It is important to understand the depth of the coverage included to insure that coverage is in place to cover your company for potential indemnity regarding breach of privacy as well as attorney fees and costs to notify patients that their information was stolen.

Insurance against cyber attacks is certainly becoming a necessity, but varying policy coverage can make it difficult to fully understand the true protection provided.  Contact a specialist at Diederich Healthcare for guidance with your Medical Malpractice and Cyber Liability Insurance coverage.

Save Money on Tail Coverage

Posted by: admin on December 20, 2011

Physicians across the country are now able to secure affordable stand-alone tail coverage.  In an effort to contain the costs of tail coverage for physicians, Diederich has taken the steps necessary in order to be able to provide cost-effective stand-alone tail coverage for physicians.

More frequent than ever, physicians have begun closing  their private practices to seek stability as an employed medical provider with a large integrated health system. Many medical experts consider this “an evolutionary step in the healthcare industry,” while others believe that this is only a cyclical trend that is linked to the weakened economic environment within the United States. This trend has remained stable over the past year and many medical practitioners have chosen to relinquish their independence to seek shelter under the umbrella of a hospital or integrative medical program.

As one prepares to consolidate their practice, an important detail must be evaluated for those canceling a claims-made medical liability insurance policy. An extended reporting endorsement or “Tail Coverage” must be secured prior to cancelling a malpractice insurance policy to ensure that past patient exposure is still protected. One of the largest misconceptions with tail coverage is that “physicians are GUARANTEED free tail coverage if they are insured with a carrier for five (5) years or more.” This is a very inaccurate assumption that can either leave a physician with an unexpected last minute overhead expense or a gap in their professional medical liability insurance coverage.

The majority of state admitted medical malpractice insurance carriers only provide free tail coverage if a physician retires completely from the field of medicine after five (5) years of continuous coverage. Therefore, physicians moving to integrated health programs are left with the daunting task of purchasing their own extended reporting endorsement. As a rule of thumb, most tail policies will cost a physician 200% of the current annual premium. Therefore, a doctor is spending $20,000 annually on medical liability insurance coverage, can assume tail coverage to be about $40,000 upon the cancellation of their current policy. This is a large overhead expense and the agents at Diederich Healthcare understand the need for physicians to cut excessive overhead expenses during these trying times. Diederich Healthcare, one of the nation’s largest medical malpractice insurance agencies serving over 13,000 physician clients, can assist physicians by finding a more cost effective extended reporting endorsement or “Stand-Alone Tail Coverage”.

Paying 200% of a current policy’s premium to lock in tail coverage is not the only option and Diederich Healthcare is able to assist physicians by finding stand-alone tail policies for less than half the cost of a tail policy offered by the physician’s current insurance carrier. Extended reporting endorsements can be secured through nationally recognized insurance carriers rated “A (Excellent)” by A.M. Best Financial Stability Ratings and ensure physicians the highest level of coverage protection. Available coverage meets credentialing requirements and medical providers can be assured that the strength of the policy is not sacrificed for a competitive price.

-About Diederich Healthcare-

Diederich Healthcare provides comprehensive medical malpractice insurance and consulting services to over 13,000 healthcare providers throughout the United States, Guam, and Puerto Rico.  Through Diederich’s seven (7) U.S. regional offices and multiple sales and service centers the company strives to provide superior client services.  Physicians using us as a single source eliminate many of their hassles.  As a leader in the industry for over 40 years, our goal is to deliver cost-effective quality insurance to our physician clients.

Diederich Healthcare is a nationally recognized insurance agency and can assist physicians with transferring their current coverage to a more cost-effective and comprehensive policy. Diederich also specializes in assisting group’s of five (5) physicians or more by creating a policy designed to meet the specific needs of the group.

Contact Diederich Healthcare to obtain a no-obligation free quote for your professional medical liability insurance. Diederich Healthcare understands the need to reduce a practice’s overhead expense and shopping for a new medical malpractice insurance carrier is one of the easiest ways to cut out unnecessary costs. Contact an agent at Diederich Healthcare today to see how today’s rates compare with your current policy.  Additional information regarding tail coverage is available from the links below:

• Florida Stand-Alone Tail Coverage
• Georgia Stand-Alone Tail Coverage
• Kentucky Stand-Alone Tail Coverage
• Illinois Stand-Alone Tail Coverage
• Maryland Stand-Alone Tail Coverage
• New York Stand-Alone Tail Coverage
• North Carolina Stand-Alone Tail Coverage
• Ohio Stand-Alone Tail Coverage
• Pennsylvania Stand-Alone Tail Coverage
• South Carolina Stand-Alone Tail Coverage
• Washington Stand-Alone Tail Coverage

Moving from Private Practice to a Hospital or Regional Healthcare System

Posted by: admin on December 14, 2011

Giving up or selling your private practice to a hospital or regional healthcare system can involve unexpected expense and exposure.  This alarming nationwide trend is luring private practice physicians with the expectation of a perceived safe-haven by being employed with an organization that “provides” the benefits of health and medical malpractice insurance, retirement benefits and an atmosphere free from the worries of employer related expenses, patient/government/insurance reimbursement collections and employee issues.  For some physicians, and for a good number of reasons, this move can be the best decision; however, it could greatly benefit individual physicians both personally and financially to consult with a Medical Malpractice Insurance Professional/Agent before and during the negotiation process.

Physicians tend to assume that their only option for Medical Professional Liability Insurance will be the new organization’s group malpractice insurance or “self-insured” policy, and that this coverage will provide the same or better protection at a lower cost than their own personal policy.  In many cases, the coverage available with the new group will differ with respect to the protection (Liability Limits, Tail Coverage, Consent to Settle) and choices (Availability to choose Legal Counsel, Insurance Company and use of a Qualified Malpractice Insurance Agent) of the individual physician, taking into account the best interests of the “organization” over the physician.  Additionally, many transitional agreements from private practice to a hospital or medical system will not provide for the physician’s prior acts to be covered.  This will result in the need for the individual physician to purchase an expensive extended reporting endorsement (Tail Coverage) in to address past exposure.  This unexpected expense for Tail Coverage will normally cost 2 – 2 ½ times the premium of the expiring coverage already in place.

For the same reason that a physician would seek the expertise of an auto mechanic for a problem with their car, doctors should always consult with an insurance specialist/broker regarding the coverage for their professional exposure.  A Medical Malpractice Insurance Broker will analyze the coverage offered and can assist in negotiating to keep a physician’s own individual malpractice insurance policy making certain that important details are maintained by the physician and unnecessary costs are avoided.

• Are prior acts covered?
• Do I need to purchase Tail Coverage?
• How do the limits of liability compare?
• Will the hospital/group settle a claim without my consent?
• Can I choose my own legal counsel?
• May I keep my own coverage?

To consult with a Medical Malpractice Insurance Specialist concerning your coverage, contact Diederich Healthcare at (800) 457-7790 or complete our free, no-obligation medical malpractice insurance quote form.

Tail Coverage for your Medical Malpractice Insurance Policy

Posted by: admin on December 1, 2011

The following post was written by one of our Medical Malpractice Insurance experts. If you are interested in seeing what Diederich Healthcare can do for you, please complete our quick and easy quote form now!  Excellent, cost-effective Med-Mal coverage is only a click away.

Professional liability insurance should extend beyond the last date of the policy period of a policy on a “claims-made” basis. Claims can be made long after the medical treatment or occurrence that caused the injury. Most medical malpractice insurance policies are written on a claims-made basis, which means the insurance company pays only claims that are received during the policy period. In that case, a doctor needs tail coverage to protect against claims that are not known about at the end of the policy period. If a doctor retires, allows his malpractice insurance policy to lapse, and a claim comes in 2 years later, the physician will have to hire his own attorney to defend him against a claim or suit. He will also be responsible for any indemnity payment that is awarded to the patient or patient’s family.

In order to protect himself from the nightmare, the doctor purchases tail coverage. Tail coverage will extend the policy that covers the physician even after he is no longer practicing medicine. Policies can range from 1 year to an indefinite time period. For more information about tail coverage, please contact one of our professional liability specialists to guide you on this very important aspect of your medical malpractice insurance policy.