Citing recent survey results that show widespread unfamiliarity among U.S. businesses with requirements of the Patient Protection and Affordable Care Act (PPACA), Travelers has announced the addition of Healthcare Exchange and Civil Money Penalties coverages to its management liability portfolio.
A Nielsen Research and Travelers survey conducted earlier this year found that two-thirds of businesses—some 67 percent—are either not very familiar or only somewhat familiar with the law’s requirements. The survey also showed that many employers do not understand that insurance products are available to help protect against new and evolving PPACA-related risks, including fiduciary liability coverage, directors and officers (D&O) liability coverage and employment practices liability coverage. The PPACA may also create additional liability exposures for non-compliant businesses.
Travelers’ new Fiduciary Liability Coverage endorsements provides additional protection against specific risks that may arise from non-compliance with the PPACA. Specifically, the Healthcare Exchange endorsement provides coverage to policyholders for the advice they offer their employees about insurance plans sold on a healthcare exchange. The PPACA Civil Money Penalties endorsement offers protection to businesses against certain PPACA penalties that may be imposed on employers who do not meet specific compliance and reporting obligations.
To accompany these and other management and professional liability coverages, Travelers is offering a set of tools and resources to help businesses better navigate the healthcare landscape. This includes access to a risk management portal for Travelers agents and customers. The portal offers details about the new PPACA requirements and the management liability exposures that employers face. Resources available include model notices and educational materials addressing the PPACA’s requirements and related management liability exposures.
In addition, Travelers directors and officers, employment practices and fiduciary policyholders will have direct access to attorneys specializing in the PPACA through an ACA hotline.
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