Health care reform has spawned a host of privacy, information security and other liability exposures for the emerging healthcare information technology industry. In response, the Chubb Group of Insurance Companies has established a program to address the industry’s specialized risk needs.
“Chubb has brought together its information and network technology and life sciences expertise to tailor insurance and loss control solutions to this rapidly growing market sector,” said Stephen Harris, a Chubb vice president and co-program manager.
More than 1,000 companies supply information technology products and services to the healthcare and medical research industries in the United States and Canada. The sector is poised for additional growth after the allocation of nearly $20 billion in federal stimulus funds to incentives to create electronic health records and to other investments in the sector.
“Chubb’s Healthcare Information Technology program will provide insurance products and services, on a global basis, that can help this emerging industry face privacy and information security requirements, as well as a host of new professional liability exposures,” said Richard Reed, a Chubb vice president and co-program manager.
An integrated liability solution from Chubb can help protect healthcare information technology companies from:
- general and products liability when software or hardware that is defective or contains inaccurate or incomplete information causes or contributes to patient injuries;
- errors and omission liability when a product defect or service deficiency results in economic injury to a customer;
- third-party liability to patients, healthcare providers and others associated with database security breaches; and
- costs incurred to comply with state, federal and foreign laws requiring companies to notify consumers of a privacy data breach.
In addition, Chubb can provide these firms with insurance addressing property, business interruption, workers compensation and auto exposures.
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