The Chubb Group of Insurance Cos. has introduced insurance coverage to help small to mid-size health care organizations manage some of their biggest exposures.
ForeFront Portfolio 3.0 for Health Care Organizations offers eight optional coverages, including cyber liability insurance for the costs associated with data breaches and directors and officers liability (D&O) insurance, which can respond to allegations of health care fraud and abuse. The six other coverage options include employment practices liability, fiduciary liability, crime, kidnap/ransom and extortion, workplace violence expense, and employed lawyers liability insurance.
“Many health care organizations are not adequately prepared to fend off a data breach, which exposes them to fines and penalties of up to $1.5 million per year under the Health Information and Technology for Economic and Clinical Health Act,” said Beth Strapp, vice president and health care product manager for Chubb Specialty Insurance. “ForeFront Portfolio’s cyber liability insurance can provide customized coverage for crisis management and privacy notification expenses, data breach-related fines and penalties, and legal defense costs.”
Increasingly, health care organizations also are being accused of filing fraudulent claims with Medicare and Medicaid, Strapp added. ForeFront Portfolio’s D&O insurance may cover defense costs and certain fines and penalties as a result of an investigation, subpoena, search warrant or other types of inquiry into such an allegation, regardless of whether a civil lawsuit is filed.
“Coverage is triggered under most other insurance policies only when a civil proceeding is brought,” said Strapp.
Chubb’s health care insurance product also includes access to a variety of loss prevention services. The online Health Care Zone at ChubbWorks offers risk management information and tools to help reduce D&O, employment practices liability and fiduciary liability exposures.
Cyber liability customers are able to access Chubb’s eRisk Hub, an online cyber risk management platform. They also can obtain partial reimbursement for costs associated with hiring a Chubb-approved cyber loss prevention consultant. Similarly, employment practices liability customers can be referred to appropriate loss prevention experts and receive a partial reimbursement of those costs. Crisis management services are available to help manage a workplace violence, kidnap/ransom or extortion incident.