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Ask the Expert Q&A: Healthcare Insurance

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Increasing demand for aging services and a boom in medispas are among the changes currently happening in the ever-evolving healthcare industry. To learn more about industry risks and Healthcare Insurance solutions, we spoke with Lily Chetosky, Broker, Professional Liability, Burns & Wilcox, Chicago, Illinois.

What are some of the greatest risks in healthcare today?

L.C.: There are a lot of various risks today in the healthcare industry. Regarding the insurance side, medical errors are a major risk. We are also seeing a lot of cybersecurity threats. Even though bodily injury is where most claims usually come from, we are still seeing a lot of cyber activity, which results in some of the financial pressures that these entities feel.

What should healthcare companies be aware of relative to these risks?

L.C.: When it comes to insurance policies, healthcare companies need to understand what is being covered and what is being excluded. There used to be more blanket endorsements and now companies are stricter about what they are actually insuring. Companies are often focused on the price, but the cheapest policy is not going to be the best option. You really need to have the proper coverage in place for your exposure. A broker can go through and see what the exposures are from the eyes of a patient, a family member, or an investor — looking through different windows into an industry allows them to really understand the risks.

Which insurance policies can help them respond to these threats?

L.C.: Medical Professional Liability Insurance, or Medical Malpractice Insurance, should be a very high-priority because of the bodily injury exposure. Cyber threats have become an issue within healthcare, so a combined policy that can cover professional liability and cyber or a standalone

Cyber & Privacy Liability Insurance policy is important. We do have capabilities to package the two, but if the company has a vast cyber exposure, then typically they will want a separate policy. Commercial General Liability (CGL) Insurance is also crucial for any place that has a brick-and-mortar building. 

What steps should companies take or services they should invest in that complement insurance coverage from a prevention standpoint?

L.C.: Many carriers offer complimentary services for our insureds. Clients often think that these services are meant to see where the company is not doing well and upcharge them, but these services are meant to help the insured and are included in the premium price. They want to be an ally and to counsel these companies with their risk management services. They go into fine detail and assess liabilities and what is important to cover.

Can you provide an example of a scenario you have dealt with that would be illustrative of the types of risks we have been discussing?

L.C.: In the aging services facilities, there is a high turnover for staffing. When a facility is having a hard time staffing, it can cause a lack of attention to detail. A claim that can result is a medication error, and that can be serious, even resulting in death.

What are the greatest opportunities for brokers to get into Healthcare Insurance?

L.C.: With the aging population growing, there is a larger need for assisted living facilities, aging services, and geriatric physicians. The need for insurance in these areas is also growing simultaneously.

What advice would you give brokers on targeting individuals to sell this coverage to?

L.C.: I would target medical administrators and risk managers of these larger entities. On the flip side, I am seeing more standalone physicians who want to open their own clinics. There are also a lot of opportunities in the medical spa industry and with ketamine clinics.

What services or features of Healthcare Insurance are specific to Burns & Wilcox?

L.C.: Our carrier partners understand the risks and help us out with our insureds. As brokers, we want to give the best service to our agents as possible, including turnaround time, attention to detail, and coverage analysis. Our carrier partner relationships are what really sets Burns & Wilcox apart from the rest.


Healthcare Insurance

WHY YOUR CLIENTS MIGHT NEED IT: Clients who run assisted living or nursing home facilities, medical spas, or those who have their own medical practice to protect against potential risks such as bodily injury or cyber threats.

PROTECTS AGAINST: Medical errors, bodily injury and cyber threats.

EXPERT OPINION: “A broker can go through and see what the exposures are from the eyes of a patient, a family member, or an investor — looking through different windows into an industry allows them to really understand the risks.”

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