Hospice care allows you to directly affect the quality of life in your communities. Keep the focus on others by making sure you have the insurance coverage you need.
As part of a hospice organization, it’s your job to focus on the care of patients while supporting their families and loved ones. By ensuring your organization has appropriate insurance protection, you’re better able to focus on the services you provide to patients and their families.
Take the time to review the declarations page of your insurance policy, as many policies contain a professional liability deductible. These deductibles can add up, so it’s important to maintain a line item in your operating budget to account for this exposure. With the help of The Cincinnati Insurance Companies, here are some insurance coverages to consider.
MANAGEMENT LIABILITY INSURANCE (D&O)
Healthcare Institutions Directors & Officers Liability (D&O) coverage protects management of hospices and their subsidiaries – including past, present, and future directors, officers, trustees, administrators, employees, volunteers, and members of boards or committees – against alleged wrongdoings. In the hospice industry, managers must direct peer review committees and quality of care, and staff privileges. Periodic training regarding the Health Insurance Portability and Accountability Act (HIPAA) and the Emergency Medical Treatment and Active Labor Act (EMTALA) is essential for healthcare-related organizations. These duties and others put hospices at risk for D&O claims, such as written demands for monetary damages, formal administrative actions, civil suits, and regulatory proceedings.
Management liability insurance and D&O claims cannot be taken lightly, as they can quickly become costly. Examples include: alleged improper billing and collection practices, former business partner separations and severance disputes, breach of duty, and denial of clinical privileges.
EPLI
Employment Practices Liability Insurance is another crucial coverage for hospice organizations, along with third-party EPLI coverage. Claims can potentially include discrimination, harassment, retaliation, and wrongful termination. Sex and race discrimination are the most common types of EPLI discrimination claims in the workplace. For example, in the hospice industry, a highly paid nurse replaced by a younger, lower-paid nurse could sue for age discrimination.
CYBER LIABILITY INSURANCE
Don’t overlook the threat of cyber-related incidents, and look for insurance coverage to protect the hospice from data breaches, identity theft, computer attacks, network security liability, and cyber extortion. Thousands of patient names and Social Security numbers have the potential to be exposed due to a security breach of a hospice computer server or as the result of a computer virus.
SEXUAL ABUSE
Sexual abuse and molestation coverage is an important area to review. Many policies provide vicarious coverage only, meaning only the hospice organization itself is protected; no coverage is included for a specific employee or volunteer worker. This can create a conflict if a claim against a worker goes to trial. You can determine if an employee or volunteer worker is covered by looking at the coverage form under “Who is an Insured.” Look to see if the sexual abuse molestation coverage is included within the general liability coverage of the policy or as a separate item. If it’s included, then sexual abuse and molestation coverage must share the limits with other liability losses. Separate coverage usually means separate limits exist. Ask your agent if you are in doubt.
By taking care of key insurance coverage, like management liability insurance and cyber liability insurance, you can protect your hospice organization and turn your efforts to serving your patients, their families, and the community. But of course, each organization and situation is unique. We invite you to contact the Feltner Group and/or your legal adviser for information specific to your situation.