What is Allied Healthcare Liability Insurance?
Allied Healthcare Liability provides protection to individuals who work under the direct or indirect supervision of doctors, surgeons, and dentists. These individuals and entities need financial protection from their professional negligence in administering patient care that can result in economic or bodily injury to the patient.
Ambulance services, medical spas, massage therapists and any other companies associated with health and well-being are classified as an allied healthcare company. Oftentimes, general liability may be offered in combination with the professional exposures – typically on a claims-made form.
Why Have Allied Healthcare Liability Insurance?
Even the smallest mistakes can have costly consequences. While some companies are able to retain this risk, many smaller businesses do not have the ability to pay damages or legal bills.
- A medical payout occurs every 43 minutes.
- States reporting the highest number of claims are NY, PA, CA, NJ, and FL.
- The average out of court settlement for a medical malpractice lawsuit is just over $425,000, while the average jury award is now over $1 Million.
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Allied Health Claims Example
Mental Health Counselor
Bruce and Selena seek the assistance of Dr. Thomas Elliot, a relationship/divorce therapist, in order to save their marriage. With two successful businesses they co-own and run, they financially have a lot at stake. Utilizing a combination of individual and joint sessions with the counselor, they proceed with bi-weekly sessions for close to a year. After a few months, Bruce beginsto suspect that Dr. Elliot is manipulating Selena’s individual sessions to expedite the divorce process rather than to resolve their differences. He is furious when Selena serves him with divorce papers including a demand for sole ownership of the two businesses. Bruce blames Dr.Elliot for swaying Selena’s decision and files a $16,000 lawsuit against him.
Coverage May Include
- Professional Liability -$1M/$3M limits on a claims made form (excess markets available for higher limits)
- General Liability -$1M/$3M limits on an occurrence form (excess markets available for higher limits)
- Sexual Abuse and Molestation
- HIPAA Violations
- Defense outside the limits
- First Dollar Defense
- Cyber Liability
- Medical Directors included for administrative duties
- Ability to schedule physicians onto the policy
- Duty to defend
- Incident trigger of claims
- Worldwide coverage
- Personal injury coverage
- Final adjudication wording
- Choice of defense counsel (subject to approval)