Beazley Group has launched a new Healthcare Regulatory Liability policy to protect policyholders against errors & omissions claims brought by or on behalf of governmental entities.
The policy also responds to billing claims brought by commercial payers and the coverage includes defense reimbursement and external forensic audit expenses.
Beazley’s global healthcare head Nat Cross said that increasing regulatory scrutiny has prompted many of their healthcare clients to seek coverage for this type of risk.
"We have listened to their concerns and have developed a form of coverage that provides robust protection for a wide range of exposures," Cross said.
The insurers said that the policy also covers civil fines and penalties and is available on a surplus lines basis with a limit capacity up to $10,000,000.
Beazley’s coverage protects providers against the consequences of a range of regulatory violations, such as Medicare and Medicaid billing investigations, False Claims Act allegations, Commercial Payor actions, and Stark actions.
Beazley provides underwriting services for hospital professional liability insurance, with a strong focus on well managed institutions, including a quarter of Healthgrades’ hospitals in the US and 15% of US News & World Report’s best hospitals.