Professional Liability insurance premiums for allied healthcare providers have been on the rise over the last few years due to a number of factors and represent a significant portion of operational costs (along with General Liability coverage) for these providers. Part of the reason for the rise in insurance costs is as a result of the mergers and acquisitions in the health care industry. While M&As help organizations such as hospitals and independent physician and specialty practices remain competitive, they also impact their risk profiles as the scope of their services and staff expand.
Another factor impacting Professional Liability costs is the severity of claims the allied healthcare industry is experiencing. The length of time it takes to resolve a lawsuit, coupled with the rising costs of skilled attorneys and a team of experts and the large judgments being awarded, have driven up medical malpractice lawsuits. In fact, average payouts for medical Professional Liability claims have reached an all-time high; the highest settlements have reached more than $100 million, according to one insurer’s report. Even if a lawsuit doesn’t go to trial, the costs associated with the defense of those cases are significant drivers of premiums.
In addition, while the frequency of claims relating to a single incident has remained stable, the frequency of related claims — what are known as “batch claims” — is on the rise, cites the report. Batch claims result from separate but similar incidents that injure multiple patients and are attributable to the same act, error or omission, or to related acts, errors, or omissions.
What is critical during this challenging climate is working with stable insurers committed to the industry to provide the liability coverages required to address an insured’s risk profile. RPS provides comprehensive solutions for the allied healthcare industry. We have a broad appetite of targeted segments including acute care & surgical care, ambulance, home health care & hospice, life sciences, laboratories & diagnostic facilities, medical staffing, physicians, retirement facilities, schools, social services and others.
Our products for the allied healthcare industry are designed by underwriters who understand the unique Professional Liability and General Liability insurance needs of the professionals who make up this industry. For additional information, please reach out to one of our RPS professionals.