US-based Travelers has added new Healthcare Exchange and Civil Money Penalties coverages to its management liability portfolio.
The new coverages will help in avoiding risks related to the Patient Protection and Affordable Care Act (PPACA).
PPACA will create additional liability exposures for non-compliant businesses, said Travelers.
Travelers bond and financial products senior vice-president Jeffrey Klenk said the survey results indicate that many companies are unaware of the management liability exposures created by the PPACA.
"These are new risks that companies of all sizes now need to manage. Delivering new coverages demonstrates our commitment to helping businesses prepare for the new health insurance mandates," Klenk added.
The Healthcare Exchange endorsement offers coverage to policyholders for the advice they provide their employees about insurance plans sold on a healthcare exchange.
The Civil Money Penalties endorsement provides protection to businesses against certain PPACA penalties, which will be imposed on employers who do not meet specific compliance and reporting obligations.
A Nielsen Research and Travelers survey revealed that two thirds of businesses are either not very familiar or only somewhat familiar with the PPACA.
In addition, the survey revealed that most of the employers are unaware that insurance products will 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 firm’s new Fiduciary Liability Coverage endorsements offer protection against specific risks, which could arise from non-compliance with the PPACA.